Tag Archives: charging yearly

Yearly Customers – A Look at Squarespace’s Pricing Page

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Shows you why Yearly Pricing RocksOne way to get more money from your customers is to charge them on a yearly basis instead of monthly. There are 3 major benefits to charging yearly:

1. No need to ask the customer for new credit card info when their credit card expires or is declined. (This is a major issue for all SAAS businesses)
2. If the average time a customer stays with your service is under a year , then by charging up front for a full year guarantees longer customer lifespan.
3. Cash in hand is worth way more than cash later. You can actually do things if you have the cash (like acquire more customers now instead of 11 months later).

Squarespace does a great job pushing the yearly plan onto the customer.

Screen Shot of Squarspace Pricing Page

My top 3 favorite things about this page:

1. By default the yearly option is chosen
2. It is clear that they get a discount when they pay yearly
3. Even though they are paying yearly they show the monthly prices

Bonus Tip: Sell the yearly plan right when they sign up. In most cases you will have lower conversions if you try to sell the yearly plan after they sign up for a monthly plan.