Monthly and Yearly Pricing

We’ve all seen it: a pricing page with two big buttons — Monthly and Yearly. The yearly plan almost always waves a “2 months free” flag. That’s not just generosity, it’s smart math.

Marketing Analysis

ConvertKit’s yearly upgrade email nails the psychology. It highlights savings, uses personalized language, and makes the action brain-dead simple: “Just click here.” The real goal? Lock in a customer for 12 months, upfront cash in hand, zero churn headaches.

Why It Works

• Reduces monthly friction from renewals.
• Increases lifetime value instantly.
• Uses “2 months free” as a savings anchor.
• Makes upgrade effortless with one-click CTA.

Examples

• ConvertKit offers 2 free months for annual billing.
• Spotify gives a 15% discount for yearly subscribers.
• Notion gives teams 20% off annual plans to boost retention.
• Adobe pushes annual prepay for Creative Cloud to stabilize revenue.