Should You Choose a Monthly or Annual Software Subscription?
We’re going to keep it short and sweet this week! Do you struggle with whether to purchase the monthly plan or commit to the annual subscription for a new software? When you look at the savings you can get from an annual plan, it seems like a pretty straightforward choice... But it's not all about dollar signs when making your decision.
Here are a few other things to consider:
Have You Used This Software Before?
If you’re buying a subscription for the first time, and you’re not entirely sure if you love the software or feel ready to commit to purchasing it for a year, you’re better off purchasing your new subscription on a monthly basis. This gives you the flexibility to test the software and ensure it’s the right fit for your business without a long-term commitment.
What Are the Cancellation Policies and Fees?
With an annual plan, you may be subject to cancellation fees or paying out your remaining contract. Before committing, make sure to read the fine print. If you’re not entirely sure that you’ll use the subscription for the whole year, the annual savings may not outweigh these other costs. It’s essential to understand the terms and conditions to avoid any unexpected charges.
Do You Have the Cash Flow to Pay Upfront?
If you’ve been using this subscription for more than six months and don’t have any big complaints or expect your usage to change, it might be beneficial to upgrade to the yearly plan and take advantage of the savings. However, consider your cash flow - can you comfortably pay the upfront cost? If so, and if the software is crucial to your operations, the annual plan can be a smart move.
Making the right choice between a monthly or annual subscription isn’t just about the savings. It’s about considering your comfort with the software, understanding the cancellation policies, and ensuring you have the cash flow to support the upfront payment. By taking these factors into account, you can make a more informed decision that best suits your business needs!