Jonathan MaximInstagram

Selling your app for 10 dollars a month is why you can’t get profitable, your…

1:07English(auto-generated)7 segments290 words · 1 min read

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TL;DR

Learn why pricing your app too low can hinder profitability and discover effective strategies to increase your average order value through smart pricing tactics.

app pricing strategyincrease app profitabilitycustomer acquisition costannual subscription benefitsmonthly vs annual pricingaverage order valuemarketing return on investmentpricing psychology for apps

Chapters

  1. 0:00Introduction to Pricing Strategy
    01
  2. 0:10The Problem with Low Pricing
    02
  3. 0:30Optimal Pricing Structure
    03
  4. 0:40Annual vs Monthly Pricing
    04
  5. 0:50Increasing Average Order Value
    05
  6. 1:00Conclusion and Key Takeaways
    06

Transcript

0:00

Stop trying to sell five, 10, 20 bucks a month. You're never gonna get profitable like that. Your customer payback period is probably gonna be like 12 months. If you pay 100 bucks to acquire a customer, giving you 10 bucks a month, you're talking about 10 months to get your money back. You're never gonna make it work like that. That is how apps go to die a slow death and not understand why. So instead of charging, let's just say your product costs 10 bucks a month.

0:14

and not understand why. So instead of charging, let's just say your product costs 10 bucks a month. Most people are gonna put sign up now, 10 bucks a month on that button on their paywall screen. Not right. What I want you to do instead is I want you to put another button above that so you're gonna have two buttons on your paywall screen and the top one's gonna say five bucks a month, say 50% and then in parentheses,

0:28

and the top one's gonna say five bucks a month, say 50% and then in parentheses, you're gonna put paid 60 bucks annually. And then below that on the monthly option, you're gonna say 10 bucks a month, no discount paid monthly, 10 bucks monthly. So what that's gonna skew people into doing is they're gonna see the annual gets about 50% discount just by going for that higher level program.

0:45

just by going for that higher level program. And if you wanna sweeten the deal, you can even offer the free trial only on the annual program so that people are skewed again to have the risk reversal opportunity only with the annual. This will take your average order value from 10 bucks up to 60 bucks in the drop of a hat. So you can be making six times more return on ad spend from your marketing efforts

0:59

So you can be making six times more return on ad spend from your marketing efforts simply by selling the whole kit and caboodle from the front.

1:02

from your marketing efforts simply by selling the whole kit and caboodle from the front.

1:03

simply by selling the whole kit and caboodle from the front.

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