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RANT: @runnersworld launched a subscription. GREAT! I love Runners World and want them to win. They have 18k sign ups. GREAT. But...they charge $30...A YEAR. That's $540,000 a year in revenue. That's just crazy to me.https://digiday.com/media/year-runners-world-signed-18k-digital-membership-program/ …
I do not understand why most companies do not charge more. I think most people undercharge because 1) they copy others 2) an employee doesn't wanna suggest charging more and looking stupid/get fired 3) media folk/journalists want to be affordable for everyone
But...with $540k a year in subscription revenue...that's nothing. You might as well make it free. I think a company like Runners World could surely make tens of millions in subscription revenue, training plans, and other things like that...if they got their pricing right.
My opinion (which came from people much smarter than me) is that most companies should charge as much as 10x what they're currently charging.https://www.businessinsider.com/marc-andreessen-advice-to-startups-raise-prices-2016-6 …
shout out to @Digiday and @bmorrissey -- love reading their work daily
I’ve heard companies and individuals compare what they charge to Netflix and other subscription companies when it’s not even relative. Most should definitely charge more.
If you can get 167 million subscribers, $5 a month is a pretty great idea.
Agreed. How much would you charge instead? I'm not sure their other monetization methods, but I would guess they're favoring volume over revenue because paid subscribers seem to spend a lot on additional products/services. Only reason why I think they would charge so little.
I'd need to dig deep to have a real answer. But I'd start at $300/year then would keep raising prices each week to see what happens.
Don't forget 40% of subscriptions pay $5 per month, which adds up to $60 per year! So it's more than $540K...
Still WAY too small for what they could get.
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