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How do most companies handle upgrading if they have users with annual plans? eg. I sign up with olark bronze plan and 3 months in I want to upgrade to gold.
by johne20 12y ago
How do most companies handle upgrading if they have users with annual plans? eg. I sign up with olark bronze plan and 3 months in I want to upgrade to gold. Now what happens? Do you create a charge for the prorated difference remaining in year?
- pccampbell 12y agoNot the author of the post, but good question - Typically, the amount is prorated as you inferred or you just kick out to another 12 months, meaning you'd be signed up for 15 months total. I've seen both, but the former is more popular. The issue comes in how you calculate your SaaS metrics, because the MRR/revenue upgrade is easy enough (prorated over the next 9 or 12 months in your example), but it's tricky when trying to calculate where you attribute the customer upgrade.