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Baptiste N

When to bill clients? (monthly subscription for SaaS)

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Hey there, I have a SaaS product with a Freemium plan and a $30-monthly subscription. When it comes to create invoices and bill clients on their credit card, is it better to: 1) bill ALL clients each month at a fixed date (ex: the 1st of each month) 2) bill clients on the day they turn "paying" (can be any day of the month) If you can give some reasons why 1) or 2) is better, that would be awesome 🙏 Thanks!

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Harri Arain
We at the www.stafftimerapp.com, give 2 months free trial however we do not bill immediately as we want our customers to ask for extensions, we do not push them to buy a solution that is not cut out for them But we do bill them once they are satisfied and most of our clients opt for the premium package. Whereas there is no rule book regarding that it also depends upon the fact that if your product is stable.
Yogi
In the product, I developed, I chose the second option! Because This helps me to maintain the perfect billing cycle for individual users! In the first option think, - What if the user started their subscription at the last date of the month? - If the started at the mid of the month, the remaining 15 days the user remains unpaid Correct me if I was wrong! Here is the billing page of the product I developed https://taskord.com/patron
Paul Miller
I agree with @bigint If you bill them every 30 from their start date, they feel like they are getting their money's worth. It's too much of a pain for you to pro-rate and it is not easily understood by the customer. You want to make their experience with you as pleasant as possible.
Baptiste N
Thanks a lot @bigint! This definitely helps a lot! Also thanks to @paul_miller4 and @ethar_alali for backing Bigfint's comment!