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Comment by citricsquid | Hacker News Reader

Please don't just do yearly subscriptions, I will rarely (if ever) sign up for a yearly subscription at first. If you do offer only yearly, make sure you also have some sort of trial.

Also StavrosK talked about subscription fees here: http://blog.historio.us/

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For me, there isn't much difference in friction between a <$5/month subscription and a <$20/year subscription. Both fall below the impulse-buy threshold for an interesting-looking service.

More than $20/year, however, and there has to be a compelling discount or a solid trial before I'll shell out for a whole year.

The price isn't really the issue, if I can spend $20 I can spend $50, it's the perceived value. To me spending $50 upfront without any guarantee I'll use the product is bad, whereas $5/m seems much better even if it works out more in the long run.

I'd have no problem spending $20/m on a good product I like but I would have a problem spending $20/year on something I haven't tried, because I "feel" like I'm spending more and committing to a longer term with the product.

Maybe that doesn't make sense, but the issue for me isn't the money but how I see the value.

I would also recommend not doing yearly subscriptions too, but as someone who was forced into doing such..

It's easier to bill and can result in more up-front revenue for your growing service BUT the psychological angle means billing monthly can make you more money (e.g. how $5/mo "feels" vs $50/year.. yet the former makes you more money), plus the angles `citricsquid` mentions.

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