Because I love data (being a big ol' nerd), let's do some math.
CURRENT PRICE FOR TUMBLR PREMIUM: $7.00
ESTIMATED NET RETURN (($7 x 0.971) - $0.30): about $6.50
This accounts for basic credit card processing fees of 2.9% + $0.30. Something at Tumblr's size should be able to negotiate better, but we are being malicious in our calculations, and saying "you get the basic rate" to prove a point.
SUGGESTED PRICE FOR TUMBLR PREMIUM: $2.00
ESTIMATED NET RETURN (($2 x 0.971) - $0.30): about $1.64
I ungenerously estimate the current Tumblr premium gets them $6.50/revenue versus my suggested $1.64/revenue.
Let's do a bit more math.
How many users at $2/base ($1.64 profit) would it take to cover the income of 1 user at $7/base ($6.50 income)?
6.50 / 1.64... 3.96341463415
So.
1 user = $6.50 (6.50 x 1) profit.
4 users = $6.56 ($1.64 x 4) profit.
we'll just let the ol' tumblr keep them there six cents and call it even an even swap
You have to attract 3 more users (1 versus 4) to pay.
I would pay $2.00/month to keep this site running. Feels like a rounding error in my books.
I flinch at $7.00/month. Feels weird to pay this much for a site that so regularly has "hm, this disasterous new feature is pissing me off."
To satisfy my various spoken and unspoken life/art studio ambitions
I offer this as a free consultancy lesson to anyone making a patreon or paid newsletter or whatever thing --
where you have a digital product that does not require shipping, handling, etc.
You can make it expensive and aim to have a small audience.
You can make it cheap and aim to have a large audience.
I personally am really fond of cheap digital services because it feels like support when I realize I have not had time to keep up. When I do have time to keep up -- "Oh this is a great value"
And when I do not, I see the bill -- "Ah, I am glad THING exists. Happy to throw them a few coins."
In respect to my soul, please use this lesson exclusively for such things as
thinly-veiled self-insert fan fiction
non-tax evasion accounting practices
joyous pornography or other erotic silliness
history (all years available)
books (novels or things longer or shorter)
and, of course, real reviews of faux products that should exist, but do not, due to limitations of time, space, money, reality, magic, technology, theology, methodology, organic chemistry, biology (marine, terra), cosmology, topology and/or cartography