If yearly subscription is cheap, you shouldn't get it
Thinking aloud: why do companies offer discounts on yearly subscriptions (compared to 12 times the monthly price)?
- Cash now is more valuable than cash later, particularly for early stage companies (also, inflation). Business loans are 7-14% yearly in UK right now, for example. Amazon Prime costs £95 yearly vs £108 for 12 times the monthly price, implying around 7% annual interest rate under some wrong assumptions.
- They get more money from the yearly subscription than the monthly one if you would've cancelled after less than 12 months.
If the yearly subscription is ridiculously cheap either the company is giving money away (not likely) or they know their customers don't stay with them for long (and you can guess why).