Across the Board

Blog on e-business and online payments.

Should You Offer Annual Billing Plans?

No doubt monthly and annual plans are the most popular billing periods in SaaS businesses. Let’s talk about annual billing plans today. Let’s look at some pros and cons.

Pros of annual billing plans in SaaS/subscription-based businesses

Annual billing plans mean simply one thing: one payment for the whole year upfront. And one payment means:

Cons of annual billing plans in SaaS/subscription-based businesses

So… to annual or not to annual?

Yes. I highly recommend offering annual plans. That could be a great thing for a company and its customers. However not at the beginning. Not for a just-created startup. First sell something, accept some money, build a processing history. Simply… build trust and prove that you are responsible enough.


Experienced executive, people-oriented leader, doer, entrepreneur. CEO at PayLane. Business educator on Also on Twitter.

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