Subscription pricing is a model where users pay a recurring fee—monthly, quarterly, or yearly—to access your product or service. It’s especially common in SaaS, media, and membership-based businesses.
Why it matters for startups
Subscription pricing creates predictable, recurring revenue, making it easier to plan growth and show traction to investors. It also helps build long-term relationships with customers—but requires consistent value delivery to avoid churn.
What makes a good subscription pricing model?
It should offer clear value over time, have flexible tiers for different users, and minimize friction to upgrade.
How can I reduce churn in a subscription model?
Focus on onboarding, customer success, and feature updates. Make sure users see value early and often.
Is annual or monthly pricing better for startups?
Monthly helps with adoption and testing. Annual improves cash flow and reduces churn—many startups offer both.
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