Monthy based or yearly subscription on Products?
Abhishek Dutta
19 replies
which ones sell more and how do you keep the recurring revenue on monthly plans?
Replies
Veeresh Devireddy@veeresh_devireddy
If there is a good discount then I would go for yearly or try for a month.
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I think that both plans are good but it depends on the perspective.
I would buy monthly just to "test" the product.
If I am satisfied, I do not have a problem to purchase extended version.
Adding value consistently helps me keep monthly plans, but yearly plans sell more when discounts are clear.
Offering a big savings boost makes yearly plans a hit. For monthly, I focus on delivering steady value.
I like the flexibility of monthly subscriptions; it's less risky upfront.
But yearly plans are tempting with the discount.
Good customer service and a product I actually use are more important than the subscription type. I'll choose what fits my budget and the value I get.
I prefer monthly subscriptions for SaaS products. It gives me the flexibility to test out the product without a long-term commitment. If I find the product valuable after a month or two, I'm happy to switch to an annual plan for the discount. The key is ensuring the product delivers enough value to justify the ongoing subscription, whether monthly or yearly.
I believe it depends on your product and target customers. For lower-priced products or ones people may want to try out first, monthly can work well to lower commitment. For higher-value products people tend to use long-term, annual pricing with a discount can incentivize people to go all-in. Many SaaS companies offer both - e.g. $10/month or $100/year. Letting customers choose their preferred option maximizes your potential customer base.
Bundling perks with yearly plans works well for me, and monthly subscribers stay longer when I connect often.
To some degree, the concept of subscriptions is built around the idea of earning money from users who pay but either don’t use the product or use it infrequently. As a user, I would prefer to pay only for what I consume and not commit to any subscriptions.
However, as a product manager, my main question is: what can I afford to do? If I can implement a six-month or annual subscription without causing a decline in the user base, I will go for it. This approach allows me to predict revenue and expenses more accurately and ensures smoother business growth.
@abhishek_ux If a product offers a 15-day free trial followed by only a yearly subscription, it targets long-term commitment and offers savings with the yearly plan.
Do you think those extra benefits help drive more sales
I’ve always wondered if people find monthly plans easier to commit to. It feels like less of a risk compared to a yearly plan
In my experience, people seem to go for monthly plans when they’re testing out a product
Most people start with the monthly plan for a month to see if it suits their needs. If they find it useful, they switch to the yearly plan.
Yearly subscriptions bring me stability, but monthly plans need constant touchpoints to keep users happy.
Monthly subscriptions tend to be more popular because they give customers flexibility, especially with products they might use often
If I am running a service or digital product monthly plans are usually more successful.
A monthly plan usually appeals to people who want a flexible risk-free way to try out products without a big commitment.