Conversion Theory - Subscription Service

Help me resolve a heated debate!

[pdivi]

I am looking for any insight/experience that will help me mediate between two camps of thought on what to do with a service.

I run a content subscription service that bills a small fee on a month-to-month basis. The way we currently sell is by offering a free trial version, which provides limited access to content. Once a customer submits the form for the trial version, we present them with an upsell page for the full version. We upsell about 10% of trial subscribers at this point. Trial subscribers are emailed daily content updates. When they click to get the full stories, they are once again presented with the upsell page. We convert an additional 5% of the trial subscribers at this point -- way below our expectations.

Here's the rub:

Camp 1 thinks the way we are doing things is fine. Our total conversion is better by maximizing leads (trial subscribers) than it would be by forcing visitors to make a purchase decision on the spot.

Camp 2 thinks by offering the trial version, we are giving visitors an excuse to postpone a decision until later, which turns to indefinitely. Since the monthly fee is small, our total conversion would be better my making would-be customers decide on the spot, perhaps with some incentive such as the first month free.

Of course, a test of Camp 2's idea will probably be the ultimate decision-maker, but I want a sanity check before we invest resources into changing the site. Any opinions?

[blaze]

My rule of thumb with trial stuff, is if you compete on features rather than price, then trials are good. This is because you are wowing your customers on your product and it'll sell it for you.

If you compete on price, rather than features, then asking for paymenet up front is best, this is because you are selling your customers on the price. The product isn't going to sell for you.

[pdivi]

Thanks, blaze. Your rule-of-thumb touches on Camp 2's assertion, which is that since our price is low, price is not a big barrier to signing up UNLESS you present visitors with a free alternative. Plus, there's a ton of sample content on the site, so visitors really have all the info they need to make an informed decision (based on features) on the spot.

Thanks again for the input. The scales are tipping towards doing a test...