a single source, nothing corroborates it

Email the customers who have outgrown their plan

Usage figures against the next tier, a short window at the old rate and a stated expiry give an existing customer a concrete reason to move up, and it costs nothing to send. The same mechanic works on the cheapest package and on monthly subscribers offered an annual switch when you need the cash.

The method

1. 01

   Email customers who are near their plan limits with their own usage figures against the next plan's, a first month at the old rate, and an expiry date on the offer

2. 02

   Email buyers of the cheapest package a discounted link to upgrade to the expensive one: another argument for having several tiers

3. 03

   Offer your monthly customers a discounted annual plan by email blast when you need cash; it lowers revenue per year but transforms cashflow, so make switching as easy and tempting as you can.

What it returned

• 45

  The example email spells out storage, user and repository usage against the next tier, holds the old billing rate for 45 days, and expires on a named Monday; the sender reported it worked very well

• $9

  Built in about an hour, offering customers on $9 a month a $99 annual plan: eleven switched the first day and ten the next, putting roughly $2,000 in the bank within two days

Sources

• $39k in eBook Sales Part 2: Design, Testimonials, and TrafficNathan Barry · nathanbarry.com · Building a following for your launch · 2012-10-08
• How to generate more revenue from your web application todayNathan Barry · nathanbarry.com · Send out an upgrade email · 2012-11-12
• Storemapper: Bootstrapped to $50,000/year in 2 years (with live metrics) - Tyler TringasTyler Tringas · tylertringas.com · Up-selling to annual billing (how to make $2,000 in an hour) · 2014-08-23