Creating Monthly vs Annual Plans
Most SaaS products offer monthly and annual options. Annual plans increase LTV while monthly plans reduce barrier to entry.
Why Offer Both?
Monthly: Lower commitment, easier to try, smaller upfront cost
Annual: Higher commitment, better unit economics, locks in customer
Pricing Strategy
Rule of thumb: Discount annual by 15-25% vs monthly
Monthly: $99/month = $1,188/year
Annual: $999/year (2-month savings)
Incentive: Customer saves $189 annually
Creating Both Plans
In Product Catalog, select your product
Click + Add Plan
Create first plan:
Name: "Monthly"
Price: $99
Billing Cycle: Monthly
Click + Add Plan again
Create second plan:
Name: "Annual"
Price: $999
Billing Cycle: Annual
Customer Choice
When creating a subscription, customer selects which plan:
Choose product → Choose plan (Monthly or Annual)
Different pricing, same features
Can upgrade/downgrade between plans anytime
Annual Plan Best Practices
Charge upfront: Full year amount on day 1
Highlight savings: Show "Save 2 months!"
Include incentive: Extra features, priority support, etc.
Auto-renew: Simplify: charge same amount next year
Tips
Most customers choose monthly (easier commitment)
But annual customers have 3x longer LTV
Make annual "the better deal" — offer real savings
On pricing page: Show annual savings prominently
Allow switches: Customer can upgrade monthly→annual anytime