Setting a price for your products can be rough. However, choosing the right strategy can be beneficial. Out Magazine published a claim by Onlyfans LLC that stated Adult Models on their platform earn the average of $1,500 per month. While various factors can affect your revenue potential, one of the most important factors is the pricing strategy.
What is a pricing strategy and why is it important?
In short, a pricing strategy refers to all of the various methods that small businesses use to price their goods or services. It’s an all-encompassing term that can account for things like:
- Market conditions
- Actions that competitors take
- Consumers’ ability to pay
- Production and distribution costs
Pricing strategies are helpful for numerous reasons. And choosing the right price for a costumed-made or private video will allow you to maximize profit margins if that’s what you want to do. Contrary to popular belief, pricing strategies aren’t always about profit margins. For instance, you may opt to set the cost of a good or service at a low price to maintain your hold over your subscribers and prevent competitors from moving in on your territory. It can also consider many business factors, like target audience, brand positioning, and product attributes. External factors like consumer demand, competitor pricing, and overall market and economic trends are also influential.
I recommend using a combination of these pricing strategies when pricing digital products: competition-based pricing, freemium pricing, and value-based pricing.💬
Competition-Based Pricing Strategy
✔️Competition-based pricing is also known as competitive pricing or competitor-based pricing.
A competition-based pricing strategy uses the competitors’ prices as a benchmark. Businesses who compete in a highly saturated space may choose this strategy since a slight price difference may be the deciding factor for customers.
With competition-based pricing, you can price your products slightly below your competition, the same as your competition, or slightly above your competition.
For example, If you sell live webcam sessions, and your competitors’ prices range from $50.00 to $100.00 per show, you should choose a lower price-point at $40.00. That will help persuade your customers to do business with you instead of the competition.
Whichever price you choose, competitive pricing is one way to stay on top of the market. Look at the modified chart below. I’ve taken a fair and balanced approach to reflect what I believe your price should be for an Amateur model.
My chart (above) detail the prices found on DVD retailer Adult Empire. See how professional pornography companies price their digital content on the marketplace.
Below you will see the pricing for a famous film produced by Devil’s Film titled Dark Divas 3 Featuring September Reign.
This film has a running time of 111 minutes or 2 hours, 5 minutes, with the cost of $21.99 to download an HD copy. In contrast, each scene is priced at $5.99.
Here they use a combination of Value Pricing and Competition-based pricing.
You can see that each scene averages over 25 minutes, which offers a high value at an affordable price.
The individual sale of a video that’s less than 10 minutes isn’t very feasible. So, you should primarily sell longer videos to maximize your profit. If you attempt to sell short video clips for a high fee, you could risk losing your customers.
Furthermore, Suppose a professional video that’s nearly 30 minutes can be sold for $5.99 in the retail market. In that case, your price should be set similarly to reflect your actual value, formulated based on the length of the video, digital resolution (HD, 4K, 1080P, 720p, 480p), and your status in the industry.
It could be challenging for amateur models to match a professional Retail seller. So take action and test different price levels to see what your fans will respond favorably to the most.
If you have any questions, feel free to email me at firstname.lastname@example.org.
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