I believe a better pricing model in many cases is to offer your product as a monthly subscription with discounts for longer subscriptions, e.g. $5 per month, $1

I believe a better pricing model in many cases is to offer your product as a monthly subscription with discounts for longer subscriptions, e.g. $5 per month, $10 per quarter, $30 per year. The drawbacks to this model are that managing subscriptions may require more effort, and you need to be sure that your service provides enough value to get people coming back. I also think your pricing plans are too low. If your service is for businesses (even small businesses) and it provides an obvious value to them, you should be able to charge more; like $10 - $20 per month (or more), again with discounts for longer terms. Even if your service is for individuals, $10 per month is not excessive. People pay $60 - $100 or more per month for cell phone service; $10 - $20 per month is not excessive for a valuable service.