SaaS contracts paid yearly or monthly?

Question

We've recently made a push to have customers pay for their contracts annually for cash flow purposes. How are other SaaS platforms requiring customers to pay?

Note: If there's pushback, obviously they can pay monthly.

Accepted Answer

Annual - we recently discontinued monthly. What % of the sales are monthly vs annual ?

Answer

Monthly here at my company. They can pay annual if they prefer.

Answer

Annual for us, really depends on the product and segment you are selling to

Answer

We have annual, net-30, as standard. We can negotiate to semi-annually and the net terms as well (but as a give/get).

Answer

95% of my company's clients pay annually but there is an option to pay monthly if they so choose.

Answer

If monthly, Bill more for the inconvenience. Annual is always preferred.

Answer

we give the option for monthly, quarterly, or annually with a better discount the longer of a term you purchase. As a company its a huge benefit in doing longer term as it makes it easier to predict revenue. As opposed to monthly a customer can stop paying at any point in time.

Answer

monthly. But we always quote Annually, and some large groups pay annually.

Answer

We offer annual or monthly! To encourage annual subscriptions, we do offer an additional discount

Answer

Annual, my company is the best in our space and we are not the cheapest product..because we are the shit compared to anything else.

Answer

If they pay annually, normally there is some type of discount associated with it. Otherwise, they will pay monthly or quarterly.

Answer

The companies I've been with are mostly mid to enterprise-focused, and the standard is usually annual payments with net 45. If they prepay for more than 1 year, that usually gets them some more points off. SMB tends to have a lot of monthly since cashflow is tighter.

Answer

My company gives an option - monthly or annual. Annual is discounted of course.

Answer

Annually is the standard. It better be a hell if a contract if we let them do quarterly and would require approval all the way up to the CFO.

TNsalesguy

SaaS contracts paid yearly or monthly?

16 comments

TNsalesguy

SaaS contracts paid yearly or monthly?

16 comments

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