Monthly VS Annual Subscriptions
I'd love to get your input on this!
We're currently offering our clients (besides one-off purchases) a monthly subscription on our stock video platform where they get 5, 10, 25 or 50 downloads per month for a certain amount. Although, we're not really sure whether to change this to an unlimited annual subscriptions or not.
We're aiming to be an affordable resource for anyone in need of royalty-free, curated stock drone video.
What subscriptions do you guys prefer? Would be extra interesting to hear the thoughts from anyone working with video or media.
I only offer annual subscriptions, mostly because my license is perpetual. A monthly plan would allow buying and then immediately cancelling thus having very cheap access to the current version of the plugin
That's the "problem" that we have right now actually so I totally see where you're coming from.
As a buyer, I start with monthly. If I like the service I upgrade to yearly if the discount is significant enough.
Totally agree. Where out minds are right now is actually that we will offer both options. Thank you for taking the time to share your thoughts!
Annual increases LTV. In our business where there is a lot of onboarding and training needed before they start to use it, churn rates are super high in the first two months.. so getting them to sign up for a year averages my LTV to about 2 years at the minimum which is amazing. As a seller I would always push for annual. Not to mention the other invoicing and billing costs we incur.
Out onboarding cost & time is pretty much zero but I totally see where you are coming from. Thank you!
I would strongly recommend focusing on annual upfront payments for yearly subscriptions. It can have such a huge impact on your CAC payback period and is one of the most powerful strategies if you're bootstrapping your company because you can reinvest the revenue so much faster if you obtain the subscription 12-months upfront.
Thank you so much for this! And you're totally right, annual payments are to prefer rather than a bunch of smaller ones. It looks like we might end up offering both though since we can't afford to loose any potential monthly subscribers at this point.
Offer both. The annual subscription usually 20-30% discounted. But even in case of annual subscription do not offer unlimited option. Keep that for “large” clients for a custom price.
Great idea. Looks like this is the option we'll land on as well. Thank you!
As a buyer? Monthly or an insanely good deal on annual. And insanely is subjective here. E.g. pay 20 per month or 99 per year (limited time only).
Great, thank you so much!
Fo sho
As a consumer, I usually like monthly for a few months to see if I really like a service and then might upgrade.
As a seller, I like annual cause it is a locked in amount of revenue
Thank you so much for your input!
This comment was deleted 6 years ago
Great, thank you so much for sharing!