Is it better to charge a monthly or a yearly membership fee for a cool online business?

Question

Which one do people respond to more??

Answer 1

allow both. some ppl do prefer annual payment rather that monthly. more on small business and tips on running a more smoother and profitable one in this article

Answer 2

If they shop once in a while a monthly fee will be good. If they shop regularly then I would charge a yearly fee. As they are the ones that will be the bread and butter of your business. Good luck.

Answer 3

I highly suggest you get a personal business account. This allows a debit card, and 1% cash back and there is no monthly or yearly fees.

Answer 4

why not offer both monthly AND yearly membership fees? that way, if someone isn't sure that they want to commit for a year, they can try it out first. and you could offer a discount for people who sign up for a years membership. hey, it's win-win both ways!

Answer 5

Monthly.... I think it is more flexible and people can fairly easy get out again if they dont like it... but I think you should have both options... you could charge for 11 months for a 1-year membership....

Answer 6

Offer both and do a small discount for paying yearly. You want that money coming in as quickly as possible and the discount might motivate your customers to go yearly upfront.

Answer 7

I think monthly. Then it looks like you are charging less (since it is broken up twelve ways) and people feel like they are not making as large of a commitment.

Good luck with your business!!!

Answer 8

Offer both. That way the people that dont want a year long membership still get what they want.