Pricing Strategy from Codecanyon (Envato)

swiped by Mike Schauer from

For those unfamiliar with Codecanyon, it is one of many hugely popular online marketplaces from Envato, a company whose story is well worth studying for their...View More

Pricing Strategy from Codecanyon (Envato)

Key Takeaways

  • This strategy is a great example of encouraging larger & more frequent purchases - two goals you should focus on in your business.
  • It particularly works for Envato because they have an ever-growing marketplace of products that users continually revisit for new releases & uses. In other words, it's not as effective if you have a small selection to choose from or don't plan on releasing new products.
  • It also works for them because asking for at least $20 is not unreasonable, especially when most users are used to spending that much there. You might be able to make it work for large transaction sizes, but the resistance would be higher unless they are planning to purchase again & there is a benefit in buying credit vs. purchasing right out.
  • Which brings me to the biggest takeaway - this strategy would be powerless without the $2 Paypal premium. It's a small differential, yet big enough where buyers will seriously consider buying credit. As with any option you want your prospect to take, there needs to be a benefit.

Analyst Spotlight

Mike Schauer

Mike Schaueris the founder of and the main analyst in the swipes section. After intently studying & building conversion-focused websites for 6+ years, he started Swiped to help others master marketing & copywriting through the analysis of great examples!

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