more data on this topic available from:: how to explode your subscription revenue through email...

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How to Explode Your Subscription

Revenue Through Email Testing

and Strategic PricingJulie LohmeierVice President, MarketingZacks.comMonday, May 7, 2007

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Outline

3 Methods of Exploding Subscription Revenue

Results Lessons Learned

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3 Methods of Exploding Subscription Revenue

Repackage existing content Launch new content or services Offer paid “samples”

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3 Methods of Exploding Subscription Revenue

Repackage existing content Launch new content or services Offer paid “samples”

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Repackaging Existing Content

Overview Often convert free content to paid Difficult at first, user resistance Requires low prices Example: Zacks Premium

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Repackaging Existing Content

Zacks Premium Zacks Rank

• Rank Stocks from #1(Strong Buy) to #5 (Strong Sell)

• “Earnings estimate revisions are the most powerful force impacting stock prices.”

• 31.9% Average Annual Return• $10,000 in 1988 now worth $1.7 Million• Partially free previously• Now only available through Zacks

Premium or Zacks Elite Additional exclusive research Incredible value

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Repackaging Existing Content

Zacks Process Free Preview Period – 14 days Introductory Rate – 1 month Occasional discounts post launch Email to house list for “heavy

lifting” Integrate on web site 90-Day Refund Policy

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Repackaging Existing Content

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Repackaging Existing Content

Pricing Strategy Preview Period: $99 for 13 months Charter Membership: $99 for 12

months Full price: $199 Discount: $149 Monthly option: $24.95

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Repackaging Existing Content

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Repackaging Existing Content

Tests – Subject line 2/14/07 90 Days to More Profits – or Your

Money Back How to Beat the Market with a

Premium Portfolio

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Repackaging Existing Content

Tests – Subject line 2/14/07 90 Days to More Profits – or Your

Money Back Winner: 17% increase on Open rate

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Repackaging Existing Content

Tests – Postcard 3/13/07 Long email to buy page Postcard to long page to buy page (Long email = Long page)

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Repackaging Existing Content

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Repackaging Existing Content

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Repackaging Existing Content

Tests – Postcard 3/13/07 Postcard to long page to buy page Winner: 4x more orders

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Repackaging Existing Content

Creative Winning postcard 3/13/07

• Subject = Limited Time: Save Now on Zacks Premium

New postcard to new landing page 4/17/07 • Subject = Special Savings for

Zacks.com Users – Expires Friday

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Repackaging Existing Content

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Repackaging Existing Content

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Repackaging Existing Content

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Repackaging Existing Content

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Repackaging Existing Content

Creative New postcard to new landing page

4/17/07 Winner: 36% more opens, 28%

more clicks, 136% more sales Landing page became new landing

page

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Repackaging Existing Content

Future Tests $50 off $150 off 25% savings Price = $149 on all

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3 Methods of Exploding Subscription Revenue

Repackage existing content Launch new content or services Offer paid “samples”

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Launch New Content or Services

Overview Easier user acceptance Higher prices typically Counter-Intuitive: Customers will

pay more for less if it’s EASY and PROVEN to work

Example: Trading Services – Surprise Trader, Breakout Trader, Options Trader

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Launch New Content or Services

Trading Services Easy: What to buy, when to buy it,

and when to sell Proven: Back-tested results =

55.8% per year on Breakout Trader Real results: Surprise Trader –

beats S7P 500 by nearly 3x, one stock up 17% in 13 days

Zacks Rank foundation

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Launch New Content or Services

Zacks Process Launch “Updates” at week 1 or 2 Last week countdown on

introductory price Last day for charter price – 30 days Email + web site links and

placements 90-Day Refund Policy + Guarantee

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Launch New Content or Services

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Launch New Content or Services

Pricing Launch price: $995 Full price: $1495 Occasional discount offers at $995 –

limited time Once proven performance and

accepted,6-12 months, raise to $2995

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Launch New Content or Services

Tests Surprise Trader – Subject 10/10/06 Zacks Best Kept Secret: Available

Now Zacks Secret to Profits this Earnings

Season

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Launch New Content or Services

Tests Surprise Trader – Subject 10/10/06 Zacks Best Kept Secret: Available

Now Winner: 13% higher net CTR

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Launch New Content or Services

Tests Surprise Trader – Postcard 3/20/07 Long Page to Buy Page Postcard to Long Page to Buy Page

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Launch New Content or Services

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Launch New Content or Services

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Launch New Content or Services

Tests Surprise Trader – Postcard 3/20/07 Postcard to Long Page to Buy Page Winner: 166% more sales

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Launch New Content or Services

Tests Breakout Trader – Copy 2/21/07 Resend Introduction to previous email

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Launch New Content or Services

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Launch New Content or Services

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Launch New Content or Services

Tests Breakout Trader – Copy 2/21/07 Introduction to previous email Winner: 4:1 more in sales

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Launch New Content or Services

Tests Breakout Trader – Subject 4/3/07 From a Lowly Zacks Sell or Hold to

an Emphatic Zacks Buy Outsmart Wall Street with New

Zacks Rank Breakout Trader

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Launch New Content or Services

Tests Breakout Trader – Subject 4/3/07 From a Lowly Zacks Sell or Hold to

an Emphatic Zacks Buy Winner: 5:1 better on sales, 20%

higher net CTR

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3 Methods of Exploding Subscription Revenue

Repackage existing content Launch new content or services Offer paid “samples”

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Offer Paid “Samples”

Overview Low-cost product* Loyalty reward, value add, or

enhancement to more expensive products

First purchase Relatively short-lived Timely offerings (eg., Top Stocks for

2007) Special Opportunities (eg., Stocks to

Double) Hot industries (eg., biotech, energy,

etc.)

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Offer Paid “Samples”

Zacks Process Pre-launch promotion Launch Update

• Performance• “Teasers”

One month Regularly after launch, about 6

months Email + integrated on web site No Refund, Limited Guarantee

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Offer Paid “Samples”

Price Encourage first time sale Don’t cheapen product Top 10: $299, Stocks to Double:

$99 Special discounts and permissions

• $100 off for paid customers (Top 10)• Free enhancement for Zacks Elite (S2D)

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Offer Paid “Samples”

Tests Subject – Top 10 (12/9) What are Zacks Top 10 Stocks for

2007? Introducing Zacks top 10 Stocks for

2007

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Offer Paid “Samples”

Tests Subject – Top 10 (12/9) Introducing Zacks top 10 Stocks for

2007 Winner: 22% higher net CTR

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Offer Paid “Samples”

Tests Subject – Stocks to Double (4/24/07) Introducing Zacks New 6 Stocks to

Double New Zacks Report: Stocks to

Double

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Offer Paid “Samples”

Tests Subject – Stocks to Double (4/24/07) New Zacks Report: Stocks to

Double Winner: 8% higher open, 22%%

better net CTR, 75% more orders

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Offer Paid “Samples”

Tests Subject – Stocks to Double (5/1/07) Updated New Zacks Report, Stocks

to Double Breaking News on Zacks Report,

Stocks to Double

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Offer Paid “Samples”

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Offer Paid “Samples”

Tests Subject – Stocks to Double (5/1/07) Breaking News on Zacks Report,

Stocks to Double Winner: 31% better net CTR, 25%

more orders

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Results

Quadrupled subscription business in 12 months

Launched 6 products Improved process as we went Did most of it with 3 staff, $0

external marketing Grew department to 6

employees

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Lessons Learned

Don’t be afraid to charge high prices Guarantees and refund policies close

sales Postcards work Use Zacks name Test! When a price is over, it’s over. Copy is key. Leverage what you have. Don’t wait ‘til it’s perfect, get out there

and learn as you go.

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Credit/Thank You

Julie LohmeierZacks.comjlohmeier@zacks.com