Knowledgebase

Billing and Collecting From Subscribers Print

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Getting paid.

WHAT MODELS EXIST

Prepaid: service continues while credit remains

Postpaid: billed after the period

Annual or long-period payment in advance

WHY PREPAID DOMINATES IN MANY MARKETS

It removes collection risk entirely.

WHAT PREPAID REQUIRES

Automated suspension when credit expires Convenient payment channels Clear notification before expiry

WHY NOTIFICATION MATTERS

Subscribers cut off without warning generate complaints and churn.

WHAT TO ESTABLISH

Reminders before expiry.

WHAT POSTPAID REQUIRES

Credit assessment for larger accounts A collection process Suspension policy applied consistently

WHY CONSISTENTLY

Selective enforcement teaches subscribers who may delay.

WHAT TO ESTABLISH

What happens at each stage of non-payment.

WHAT PAYMENT CHANNELS TO OFFER

Whatever subscribers actually use.

WHY IT MATTERS

Inconvenient payment causes involuntary disconnection of subscribers who intended to pay.

WHAT TO AUTOMATE

Activation on payment.

WHY

Manual reactivation delays service and generates support contact.

WHAT TO TRACK

Collection rate Involuntary suspensions Reconnections

WHAT HIGH INVOLUNTARY SUSPENSION INDICATES

A payment convenience problem rather than an ability problem.

WHAT TO ESTABLISH ABOUT EQUIPMENT ON CANCELLATION

Whether it is recovered, and how.

WHY

Uncovered equipment cost turns a short subscription into a loss.

WHAT TO CALCULATE

The minimum subscription period that recovers installation cost.

WHAT TO CONSIDER

Installation charges, or a minimum term.


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