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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.

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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.

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