This article was updated with new information from Robert Andrews and the iTunes developer page at 3pm EST.The Guardian recently reported it has 17,000 paying iPad subscribers. Given that there have been 804,000 downloads of The Guardian’s iPad app, paidContent estimates a conversion rate of 2.1%. However, a spokesperson from The Guardian was quick to dispute that number, telling paidContent that number varies by month.Regardless, it’s worth examining what The Guardian is doing right and what they could improve upon.First of all, the initial trial period of three months was WAY too long. Trial-takers were likely to get used to free access and then annoyed when asked to subscribe. Fortunately, the company has revised this trial period and now offers two-week trials. Much better.Secondly, The Guardian doesn’t seem to have done much to optimize conversion. Just take a look at their offer overlay below.

Here’s what’s wrong with the offer:

• They’ve got a boring headline saying “Subscribe” instead of a headline specific to the article the customer is trying to read behind the overlay.
• Their marketing copy highlights features of the iPad edition, not reader benefits (i.e., a more relaxing, enjoyable experience, at your fingertips, anytime, anywhere).
• Their call-to-action button should be bigger with more engaging copy (Get Instant Access Now) — no need to repeat the subscription price twice.
• Lastly, the button to avoid signing-up (“Close”) needn’t be so big.

But most of all, it doesn’t look like The Guardian is requiring a credit card number when prospects sign-up for the free trial. iPad app subscribers do not pay directly — they are forced to use iTunes Store payments. And moreover, iTunes doesn’t seem to allow trial offers — publishers are forced to create free or “lite” version of their apps and then ask those subscribers to upgrade to a subscription. Good marketing can get your trial conversion rates up to a solid 4%, but allowing trial-takers to be automatically charged for a  subscription at the end of a trial can catapult that number into double digits — like 30-50%.The paidContent article does a good job of detailing the revenues and conversion rates from The Guardian’s other subscription products, such as their iPhone app. But here’s my favorite detail you may have missed — The Guardian pulled in £31 million last year from other digital operations, principally Soulmates — their subscription-based dating site. If newspapers are looking for a way to make up for lost advertising and classified revenues, dating personals might be the way to go!