You've probably already heard that Steady is allowing creators to increase their prices by August 18, 2023.
But what would increasing your prices actually mean for your monthly payouts? The answer to this question can help you set new prices for your project that suit both you and your members.
A price increase is directly reflected in your payout, as all deductions (VAT, payment and Steady fees) would remain the same. How much your payout increases depends on two factors:
The amount you increase your prices by
How many members support the voluntary price increase
Here’s an example:
Say you have 300 members across 3 plans, and you raise your prices by our recommended amount of 20%, rounded up to the nearest 50 cents.
Number of members
Old monthly payout*
New price (+ 20%, rounded up) for 40% of members
New monthly payout*
*After VAT (19% example rate), Steady fees (10%) and transaction fees (example rate based on average values: 4.6%).
If 40 % of the members agree to the voluntary price increase, you can expect an additional net income of 88.87 EUR per month, or a little over 1000 EUR per year.
Please be aware that the new prices come into effect at the next membership renewal. It may therefore take a few months before your monthly payout fully reflects the positive effects of the price increase.
How to get the most out of the price increase
If you want to convince as many of your existing members as possible to support the price increase, one thing is particularly important: effective communication.
Here are 5 ways you can talk about the price increase on social media or in a newsletter that will make your members want to increase their support:
Explain why the price increase is important for your project. For example, state how long your plan prices have been in place and how much inflation has increased since then. You could also tell them what you have planned for your project in the near future, and why it is important for you to have a reliable income that can sustain you through times of dramatic inflation.
Be transparent about how you set the new prices. Describe the basis of your new prices. Did you follow our suggestions or set your own prices? What were your reasons for doing so?
Empathise with their situation. Emphasise that no one has to cancel their membership because of the higher prices - as the adjustment is voluntary, members can simply keep the old price. This is an especially important point for your supporters who have been hit hard by inflation.
Appeal to their supportive nature. All your members are already invested in you and your project - they want you to succeed. Make the price adjustment a shared mission where everyone feels that they are pitching in.
Say thank you. If you have the time, prepare a small thank-you gift for your members. This could be a special post, episode, or even just a nice social media post.