3 ms·
Would you rather be paid upfront or in arrears? Simply the timing of the payments is a really big financial incentive to have tiered-pricing - which is why you
by gerad 3y ago
Would you rather be paid upfront or in arrears? Simply the timing of the payments is a really big financial incentive to have tiered-pricing - which is why you see it so often in the wild.
- gavin___belson 3y agoGood point. I would argue that timing of payments makes a big difference if you have high costs on the units you sell, e.g. EasyPost with shipping labels via API request. But for other SaaS with high margins you would only front very limited money for like 30 days. Couple of counter-measures for this exact point I have seen in the wild: - companies letting you top up your account balance, then do usage based charges on the balance - companies having a billing-threshold where they trigger a payment (or multiple) during the month