Ask IH: Selling packages vs individual products
Hey everyone,
I just released streamerpack.com about 2 weeks ago and I am questioning my current business plan. StreamerPack is a website providing custom graphics to Twitch streamers, and I'm selling the graphics as a bundle with 3 different tiers. There are a variety of graphics a streamer needs, such as panels, overlays, profile pictures, profile banners, etc, and more of these are provided as the price goes up in each tier.
In an effort to get some traction and get my first customers, I've been talking with streamers on Twitch. Many of the streamers I talk to will mention that they need X for their stream, but don't seem interested in a full package. Given that I've been targeting smaller streamers, many of them don't have the money or don't want to pay for a full package since they don't have a very large audience yet. With this feedback, I'm considering switching over to a "build your own package" model, where I would allow the streamers to choose which graphics they want and in what quantity. This way streamer can order just the graphics they need/want. Does this seem like the right move based on what I've heard from my target audience, or am I being too impatient with my current model?
Depends how many streamers you've talked to. Did you speak with 10 people and 10/10 say that they won't buy a package? For the ones that mentioned X for their stream, have you tried just selling them X?
There was a post on here earlier about few large customers vs many small customers. It went something like this:
50 $500 paying users = $5000
500 $10 paying users = $5000
Which would you rather have? So I'd suggest keep going until you hit one customer that will pay your package, analyze the opportunity costs of getting that customer, then decide what your model should be. If you can't find even one customer, then change your model (or look back on the value of your product).
The product seems reasonable. I'm not in the Twitch community much so as an outsider I would imagine that many streamers are simply not looking to pay for anything at all until they begin big enough.
And I don't know if you have competition that does it cheaper. But the product seems on point for a streamer who is just getting over that hurdle of building a decent audience and has crossed into making enough money it doesn't feel like peanuts.
I personally don't like the purple, purple, purple theme... but I realize that's Twitch's color. :)