Annual plans. Yes or No?

More money sooner is better. You can't count on 12 months of payments from a customer on a monthly plan, when they've paid a year up front you can.

If I told you I'd give you one thousand dollars today or I might give you $99 a month, IRL, which would you prefer?

Other benefits to annual plans includes the fact that folks who fork it over are more serious and better customers (in my experience)

We do cash accounting, not accrual, so I ignore that and I don't have any shareholders to which I report. If you need to fudge numbers then don't do annual, if you want revenue, offer annual.

One downside to annual plans that I don't see discussed often is that it makes the financial side of your business much more complicated. If you're a venture-backed startup with a legit CFO, that doesn't matter, but if you're a bootstrapper with no formal background in that stuff like me, I think annual plans become less appealing.

If you charge monthly, pretty quickly you'll have reliable revenue which won't change meaningfully month to month. That makes it easy to figure out how much you can spend. If you charge annually, you'll get a bit pot of money up-front which is great, but it's much harder to figure out what you can afford to spend so that you don't run out. And your revenue will be variable until the end of time.

If you charge monthly, you'll figure out your churn rate almost immediately and you can start working on improving it. If you have people on annual plans, they only have one chance to churn each year which makes the math harder, and it increases the amount of time it takes to measure the results of your attempts to decrease churn.

I could go on and on, but basically, annual plans give you the money up front which is a powerful tool if you're a finance expert, but I've always found monthly to be much simpler to work with personally. My approach is to default everyone to monthly. If people want to pay annually, they can, but I don't advertise that, and there's no discount for doing so.

If we are talking about B2B SaaS, I will now show why going annually with Comfi will save you a lot of budgets.

Comfi is BNPL for SaaS, which helps to split the annual plan into monthly payments without any interest fees (4-12 months). Most businesses have several subscriptions and going annually with all of them, will cost a lot of money from the budget. Here Comfi can help you to buy several annual plans while keep paying for them monthly, but with the price of the annual plan.

https://medium.com/@amal_abdullaev/how-to-split-your-saas-annual-subscriptions-payments-8a6716a4011a