Why offer yearly pricing?

Offering a yearly pricing option alongside your monthly plan is a proven strategy to increase member retention and predictable revenue. ## Benefits of yearly plans ### Higher retention rates Members who commit to an annual plan are significantly more likely to stay engaged with your community. The upfront commitment creates a psychological investment that encourages active participation throughout the year. ### Predictable revenue Annual subscriptions provide more stable, predictable income compared to monthly billing. This makes it easier to plan events, invest in your community, and grow sustainably. ### Lower churn Monthly subscribers are more likely to cancel on impulse or forget to update payment methods. Yearly members have already made a longer-term decision, reducing involuntary and voluntary churn. ## Pricing your yearly plan A common approach is to offer a discount equivalent to 1-2 months free when members pay annually. For example: - Monthly: €10/month (€120/year) - Yearly: €100/year (saves €20, or ~17%) This gives members a clear incentive to choose the annual option while still providing you with upfront revenue. ## Best practices - **Highlight the savings**: Make sure members can easily see how much they save with yearly billing. - **Keep both options visible**: Let members choose what works best for their situation. Yearly pricing isn't right for every community, but for established memberships with consistent value, it's an effective way to build a more sustainable business.