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by jeffreyshaw
5194 days ago
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It really depends on how many comparable alternatives exist in the marketplace. Its no doubt that requiring CC's upfront will lead to recurring customers; but how many potential customers are you turning away? I would say for most startups you're not just concerned with revenue, but also adoption. You want your site to be used and talked about amongst social networks in person and online. This is greatly diminished when a customer bails from your site to a competitor before signing up. My advice is that if you are offering a good service that is so good that customers will be unable to find a comparable alternative; offer your signup for free and hook them with your kick-ass product. You're just going to irritate people when you start charging their credit cards and they aren't a huge fan of your business afterall. The only extra revenue you get by requiring CC for signup are tricking people into paying for a service they otherwise later decide they wouldn't pay for. This will only lead to a negative brand image, credit card chargebacks, and diminished market who has tried your product. |
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