The images above perfectly show the marketer’s tug-of-war: should you charge monthly or yearly? Turns out, the best pricing strategy is using both... together.
Why both options win
- Monthly feels low-risk and gets people in the door.
- Yearly locks in loyal users and boosts upfront revenue.
- The price anchor (monthly $97 vs yearly $750) makes the yearly plan look like a deal.
- Customers feel in control when they can choose.
Real-world proof
- Netflix hooks you monthly, then prompts annual payers with discounts.
- Canva and Notion both use this “test then upgrade” model.
- Adobe nudges users from $52.99/month to $599/year (over $35 in savings).
- Spotify’s Family plan gives 2 months free if you switch to annual billing.
Both plans have a role. One brings customers in; the other keeps them.
Analyzed by Swipebot
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