When I was a kid, I had a theory that you could make more money by selling pencils for $.75 apiece than for $1.00, because more people would be attracted to the lower price and you’d sell more pencils.
Looks like I was right.
Good Magazine went to a pay-what-you-want subscription model last month, and here’s the breakdown of their revenue since then:
Old Subscription Model (average 41-day period)
Total orders: 1,025
Average price: $20.00
Total cash raised for nonprofits: $20,500New Subscription Model (first 41 days)
Total orders: 2,789
Average price: $13.49
Total cash raised for nonprofits: $37,624