

Ask HN: When to inform users that service isn't free - JohnnyGM

We're creating a service/market place which will involve companies quoting personalised offers for consumers. The product they are quoting for is a high ticket, low repeat custom item. We will require our users to pay a small token amount for the service as the companies need proof of a valid and interested lead (we're aware there are other ways to prove a lead, but for various reasons a token payment is best).<p>There are a number of competitors in our industry who provide a similar service, but the lack of any decent qualification means it doesn't work out for either parties.<p>We aren't sure whether to tell users it isn't a free service before they start giving their order details (which is a fairly lengthy process) or after they've filled in all the forms and shared their details/order.<p>Arguments we've thought of for telling users after they've filled in i.e. announcing it's a paid service and making payment the last step in the process):<p>+ Time invested in user filling out details may mean conversion rate is higher<p>+ Social proof contained at footer of each step in the process may create excitement/momentum<p>+ Trust/enjoyment of experience is built along the way<p>- Perceived negativity on brand/experience over hiding the cost<p>- Bait and switch style<p>Arguments for announcing it's a paid service on landing pages i.e Users aware immediately it's not free<p>+ More space to explain why it isn’t free<p>+ Upfront and transparent explanation of the process<p>- Exit rate will likely be higher as people immediately see it’s not free and leave<p>- If landing page bounce rate is higher then PPC quality score may be lower<p>I'd be interested to hear people's thoughts on which is likely to convert better. Obviously we'll A/B test both, but are debating which to soft-launch with.
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adyus
IMHO, it all depends on who your customer base is. If it's mostly well-
educated, savvy web users, they might react better to upfront disclosure,
while less experienced users might indeed be turned away.

I vote for upfront disclosure, at least until you can set up A/B tests.

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JohnnyGM
The customers are generally older, not web-savvy customers

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adyus
I'd recommend a middle way. Disclose the fee at the end, but have a progress
indicator throughout the fill in process, where a step should be clearly
labeled "Payment" or "Fee". That way, they can opt to continue the process and
learn about the payment.

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JohnnyGM
Yeah that could be an idea, could be interesting from analytics to see how
many people jump to that page and then bounce.

