Annual subscription

Annual subscription

Subscriptions

A subscription paid once a year, either for a year of access or for a year of deliveries.

What is Annual subscription?

Also called a yearly subscription. Annual plans usually come with a bigger discount in exchange for paying upfront. They improve cash flow and reduce cancellations, because customers decide once a year instead of every month. For physical products, an annual plan is a prepaid subscription: the customer pays once and the brand ships each delivery on schedule. Chargezen prepaid plans let customers pay once for several deliveries, such as 3, 6 or 12.

Formula

Annual discount = (12 × Monthly price - Annual price) ÷ (12 × Monthly price) × 100

Example

For example, a coffee roaster sells 12 monthly bags for the price of 10 when paid upfront. At $20 a bag, that is $200 instead of $240, a discount of about 16.7%.

Why Annual subscription Matters

Annual plans lock in revenue and are a strong offer for holiday and Black Friday promotions.

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