Yearly subscription
What is a yearly subscription?
A yearly subscription, also known as an annual subscription, is an arrangement in which customers pay a single fee once every 12 months in return for continued access to a product or service. These subscriptions often belong to the access subscription model, where subscribers pay upfront for a year’s worth of benefits, such as exclusive discounts, special offers, new product releases, members-only content, free delivery, or other perks. Examples of yearly subscriptions include an annual plan for a fitness app, a software licence renewed each year, or a membership granting special shopping privileges and discounts.
Yearly vs monthly subscription plans
Subscriptions can follow different billing schedules depending on what suits the business and its customers best. In addition to yearly plans, many businesses offer monthly, weekly, or custom subscription intervals (such as fortnightly). The ideal frequency for billing depends on several factors, including how often customers use the product or service and how flexible they wish their payments to be. For example, customers who like the option to skip deliveries or adjust their orders might prefer monthly payments over committing to an annual plan.
Benefits of yearly subscriptions
Whatever the cadence, subscriptions provide significant benefits to both consumers and businesses.
For businesses, yearly subscriptions generate dependable, recurring income, making financial forecasting and planning more predictable. They help boost customer loyalty and lifetime value, as subscribers are more likely to stay engaged with the brand over a longer period.
For customers, yearly subscriptions can offer convenience and savings. Many companies incentivise customers to choose an annual plan by offering lower prices than the total cost of monthly payments spread over a year. Paying once per year also saves customers the hassle of dealing with frequent payments, allowing them to enjoy uninterrupted service without needing to remember monthly renewals.
