What's your discount for the annual plan versus the monthly? We're trying to figure out the sweet spot that locks in revenue without giving away too much.

Payments & Revenue
1

Been testing different annual discounts but struggling to find the balance.

Too low and nobody converts. Too high and we’re leaving money on the table.

What percentage off monthly are you offering for annual plans?

2

We tested 15%, 20%, 25%, and 30% discounts on our productivity app and landed on 20%.

20% was the winner - 3x more annual signups than 15%, but only 8% less revenue per user than 25%.

30% backfired. People started doubting the product was worth full price.

Pro tip: Frame it as “2 months free” instead of a percentage. Same discount, but feels like a bonus instead of a price slash.

3

Two months free beats any percentage discount every time.

4

Tried 16% but customers wanted a bigger discount.