How to Get More Site Traffic to Convert to Free

How to Get More Site Traffic to
Convert to Free Trial Subscriptions
with Credit Card
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Ariel Yarnitsky
CEO
Speedbit, Inc.
Tuesday, May 8, 2007
Speedbit Video Accelerator for
1 Million users in 49 days
Pure Organic Growth
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The fastest growing Application in the history of the web
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Fastest Growing Viral Applications
Users
14,000,000
12,000,000
10,000,000
8,000,000
Speedbit
Video
Accelerator
6,000,000
4,000,000
ICQ
Hotmail
Skype
Kazaa
Video Accelerator
2,000,000
0
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0 1 2 3 4
5 6 7 8 9 10 11 12 13 14 15 16 17 18
Months from First Users
Data and graph (excluding the Video Accelerator data) taken from Tim Draper’s
presentation on viral distribution
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Solving picture freezes and hiccups of streaming video
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…and cutting down the download time of movies:
Taking down the download time of a movie on iTunes
From
3.5 hours (210 min.)
To
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22 mins
On a 5Mb connection, using Video Accelerator v.2 (beta)
Our experimentations showed 4 to 10 times faster download times
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The Business Model

Free Acceleration for free video sites e.g.
YouTube, DailyMotion, Break etc.

Premium acceleration for premium video
services e.g. iTunes, UnBox, WalMart Video etc.
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Our Objectives
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
How much should the premium service cost?

Subscription – Monthly or Annual?

Offer trial? For how long?

Who is our best audience?
 Upgraders (users of the free Video Accelerator
upgrading to the premium version)
 Direct Premium Purchasers
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Methodology
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Methodology

Monthly subscription testing:
Control group - $4.90/month
Test I - $2.90/month
• Test II - $5.90/month
• Test III - 14 day free trial to convert at $4.90/month
•
•

Yearly subscription testing:
Control group - $49.90/year
Test I - $29.90/year
• Test II - $59.90/year
•
•

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Two target customer bases:


Upgraders (users of the free Speedbit Video Accelerator)
Direct Premium purchasers
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Testing Focus & Process


Main focus is achieving optimal economic
pricing model, ultimately delivering the right
price to the right customer
Coherent & consistent pricing along the banner,
landing page and form (checkout)
 Implement Amadesa oneTag on:
•
•
•
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
Upgrade promotion page
Commerce pages
Completion pages
Random delivery of prices to consumers via
even split traffic test
 Gather data for behavioral targeting &
profiling users
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Control Price
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Free Trial Offer
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Price Test - Higher
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Price Test - Lower
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Results & Conclusions
Listed below are monthly results; yearly data proved negative
response and thus the project switched to highlight & focus on
monthly pricing models
Monthly Subscription
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Close Rate
Revenue Lift
Control ($4.90/mo)
100 (index)
100 (index)
14 Day Free Trial
Conversion
163
130
$2.90 per month
113
67
$5.90 per month
100
120



$2.90 results show poor value proposition in consumer’s eyes
$5.90 closes same as control; free trial should switch to
$5.90/month pricing model
Free trial shows highest close rate and highest revenue lift
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Next Steps

Extend free trial tests to 21 & 30 day conversion

Enhanced testing for different landing pages

Focus on billing pages to improve close rates

Activate & leverage behavioral targeting module
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Thank You
Ariel Yarnitsky
Speedbit, Inc.
[email protected]
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