Investigate how monthly and annual payment plans work together. This is a complex model that influences all financial reports as well as pure Subscription Unit Economics.
Product
Monthly
Annual
% (see notes)
%
%
Notes:
- Unlike the Two Product Plan Explorer, this tool does not have downgrades from Annual to Monthly as these are dependant on a number of factors, and most likely only take affect 12 months after the initial purchase.
- For simplicity we have assumed the same growth and churn rates though this may not be accurate in the real world.
- Churn for annual plans also doesn't come into effect until the after first 12 months, however we still use the existing units as the basis for Annual Churn.
- Annual plans bring in a lot of cash early which needs to be deferred from the Profit and Loss Statement. Check out the Deferred Revenue Explorer to learn more.