I’m thinking about restructuring our pricing, and advertising the per-month amount for the annual plan instead of the per-month amount for the monthly plan to try to get customers to opt for the annual plans more than they currently are. In my opinion, cash up-front for a year with a 10-20% discount is much better than ongoing cashflow because it costs so much to acquire customers.
For example, showing a plan at $39/mo on our pricing page with annual subscription but if they end up choosing monthly at the time of subscribing then it is $49/mo. It is a significant difference that will hopefully achieve more annual plan signups.
I’m also considering adding 2-year and 3-year plans so we can show the plans showing at even lower monthly amounts. In the above example, we can advertise a $29/mo plan based on a 3-year pre-paid plan, which is a 40% discount. That would give us $1,044 up front instead of $1,764 over 3 years. Not bad if our acquisition costs are significantly less than $1,044.
However I am a little reluctant to offer plans longer than a year because I’m not sure if anyone will sign up for them, and Stripe doesn’t currently support subscriptions longer than a year so it would require manual intervention.