Setting the recurring amount.
WHAT TO CONSIDER
Your cost to deliver each period What the customer receives each period What alternatives cost them How long an average customer stays
THAT LAST ONE
If customers stay six months on average, your acquisition cost must be recovered within six months.
MONTHLY AND ANNUAL
Offer both.
Annual improves cash flow and reduces churn substantially.
Discount annual enough to matter.
WHAT DISCOUNT
Enough that annual is clearly better value. Two months free is a common approach.
PRICE CHANGES
Decide whether existing subscribers keep their original price.
Honouring it reduces resentment and complicates your records.
State your position in your terms.
TRIALS
Reduce hesitation and attract people who cancel before paying.
If you offer one, take payment details at the start.
WHAT TO AVOID
Pricing you cannot explain in one sentence Too many tiers
WHAT TO REVIEW
Your actual cost to serve, annually.
