Why pushing monthly plans cost an affiliate $9k/year
Everyone chases recurring, so this affiliate steered buyers toward monthly billing — more recurring events, right?
Wrong math. Here's what 12 months showed on 200 customers:
— Monthly cohort: average lifespan 4.1 months. 200 x $29 x 30% x 4.1 = $7,134.
— Annual cohort (same tool, same audience): one upfront $290 charge, 30% = $87 x 200 = $17,400, and 44% renewed for year two.
Annual buyers prepay through their own churn. Monthly buyers cancel the second a card declines or a cheaper tool launches.
By fighting for "more recurring," they locked in the highest-churn cohort the program had.
Recurring revenue from a leaky plan is just slow-motion one-time revenue. Sell the annual.
Stack Skeptic
@StackSkeptic
Why pushing monthly plans cost an affiliate $9k/year
Этот пост опубликован в Telegram-канале Stack Skeptic. Подписаться можно по ссылке: @StackSkeptic.