CASE STUDY: “Money, Money, Money: Offers”


(This is a business case study. It will be used to guide discussions during the session: “Money, Money, Money: How the Paysite Pros do Billing – Offers” with co-hosts Mitch and Thierry of Vendo at the Paysite Meetup.)


“Am I just hanging on to the past?” Chris asked himself as he toured the sites of his competitors.

They did lots of things differently than he did. Many things jumped out. But the biggest difference he saw was that competitors offered trials and Chris did not.

Chris had never offered trials before. There was a lot that went into the decision. Obviously, it would affect conversion and LTV. It also would have implications for cross sales, payouts to affiliates, and other aspects of the business that he hadn’t even thought about. Oh yeah, he’d probably have to build a limited member’s area, too. “Sure, I’ll just do that with the two extra developers I don’t have,” thought Chris sarcastically.

What did he expect would happen? His conversions would jump. And, even though his LTV would lower, he would make more money. Total revenue would increase. He could track it all with a classic A/B test.

But Chris didn’t move forward. He felt like his content had an inherent value. He didn’t want to let people access it so cheaply. He took a hit on revenue to maintain a perception of value. That is how he decided to play it.

What questions do you ask about offers?

3 questions:

  1. How do you decide which combination of offers to present to each person for each of your products?
  2. How big of an impact can offers have on revenue?
  3. Should you have trials? How do you know?

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