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Annual subscriptions are particularly valuable for SaaS companies which are growing consistently. If I can reinvest the profits from an annual subscription in m
by benjaminjosephw 7y ago
Annual subscriptions are particularly valuable for SaaS companies which are growing consistently. If I can reinvest the profits from an annual subscription in my growth engine I've self-funded growth that I would otherwise not have had. I'd only want to do this if my investment were likely to produce a higher value over the same period than revenue lost from the discount I've given my customer.
Regardless of retention benefits, if you've got predictable growth then annual subscriptions should be well worth the discount.