Comment by NEPatriot

I think you definitely need to play around (AB test) with your pricing model. People have thrown out options already, another one to consider is one which gives the product away for free for donations under $100 (users still pay the 3.5%) in order really strip away barriers to sign ups. Once they go over $100 a month and your site has proven its value perhaps they won't mind the fees as much since your product has already demonstrated its value.