Question
What are the pros and cons of Program Fee vs. Subscription?
Is there an ideal customer type of each model, or does it all depend on your go-to-market strategy?
Answer
Off all the comments below, I like Ryan's the best. I assume the reference to "personalized" is a reference to the platform and possibly the content. Personalised pricing (aka marketing nirvana) is nearly with us (the airlines are closest) but there is still a way to come.
I like Ryan's comments below because there is no rules that says you should only have one pricing model. Let customers self-select / self-segment. Those who want program fee will buy it and those that want subscription will buy it. One model may service as a decoy to another and v.v..
With the subscription model, create three versions (think good / better / best) and price on a log pricing curve (not linear), unless you're making one of those three options a decoy.
The advantages of three options: customers say which one do I buy? (not do I buy?) and you force them to make a value-based, rather than a price-based, decision.
Happy to chat further!
