Billing all customers on 1st of every month (SaaS)
Right now my SaaS subscription billing is spread in a given month. Few customers are billed on 5th, few on 10th , few on 18th and so on.
I am thinking to bill all my customers on 1st on every month.
I see no one have done this in the industry.
Please comment on advantage and disadvantage of this idea.
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you will create peak load to treat payments every month , payment is one of biggest sources of support requests. When you are bootstrapping it sounds nice to only have to bother with that a few days a month. But in the long run , you will create days with an overload of work and days without. bigger companies prefer "Always on" so that employees always have the same work load
What are your reasons for wanting to do so?
We set up our billing this way. Originally we did this because we didn't have any employees and worrying about billing and dunning every day would have been too distracting. As the company grew we kept billing this way, mostly due to momentum. It ended up making commission calculations for our sales team easier as well. We haven't had any issues with it - although we are B2B, so we aren't processing a million different cards a month.
What's the benefit of getting all of the money on the same day? I don't see any tbh.