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Does annual-based subscription really have that low of recurring rates? Seems like it would be a rather moot point => off-set by lower transaction fees for proc
by pxlpshr 17y ago
Does annual-based subscription really have that low of recurring rates? Seems like it would be a rather moot point => off-set by lower transaction fees for processing cards once per annum instead of every month.
- decultured 17y agoNot only that, but an annual subscription is basically equivalent to 12 months of guaranteed monthly renewals. I would be interested to see comparative attrition rates of how 12 months of monthly renewals compare to attrition rates of yearly subscriptions from a popular site that uses both. We are struggling with this issue with my current startup, whether to do yearly or monthly only, or both, and what the comparative rates would be.
- wschroter 17y agoYou're assuming that people are willing to pay for your product up front for 12 months. If your price point is so small that an annual subscription is under $20, then it doesn't really make sense to charge monthly. I was speaking mainly for higher priced items.
- pxlpshr 17y agoBoth are good points, would definitely like to see more research on the topic. I definitely agree there is a threshold when it comes to monthly vs yearly. I know you just tossed out a number but $20/year seems a little lower than I was thinking.