Notes For Anyone Wanting To Change To Either Annual Plans
When a paying subscriber on Substack switches from a monthly to an annual subscription, Substack's accounting handles this by prorating the charge.
Here's a breakdown of how it generally works and the accounting implications:
1. Prorated Charge for the Annual Subscription
Substack calculates the unused portion of the current monthly subscription. This amount is then credited towards the new annual subscription. The subscriber is charged the difference for the annual plan, taking into account the credit from their remaining monthly subscription.
Example: If a subscriber paid $20 for a monthly subscription on July 1st, and on July 15th (halfway through the month) they switch to an annual subscription of $200, they would receive a credit for the unused half of their monthly subscription (e.g., $10). They would then be charged $190 for the annual subscription ($200 - $10).
2. Change in Renewal Date
The renewal date for the subscriber's plan will change to the date they upgraded to the annual subscription. So, in the example above, the next renewal date for the annual plan would be July 15th of the following year.
I assume you allow people to move from a monthly to an annual subscription without any cost increase?
Here Ruben:
Notes For Anyone Wanting To Change To Either Annual Plans
When a paying subscriber on Substack switches from a monthly to an annual subscription, Substack's accounting handles this by prorating the charge.
Here's a breakdown of how it generally works and the accounting implications:
1. Prorated Charge for the Annual Subscription
Substack calculates the unused portion of the current monthly subscription. This amount is then credited towards the new annual subscription. The subscriber is charged the difference for the annual plan, taking into account the credit from their remaining monthly subscription.
Example: If a subscriber paid $20 for a monthly subscription on July 1st, and on July 15th (halfway through the month) they switch to an annual subscription of $200, they would receive a credit for the unused half of their monthly subscription (e.g., $10). They would then be charged $190 for the annual subscription ($200 - $10).
2. Change in Renewal Date
The renewal date for the subscriber's plan will change to the date they upgraded to the annual subscription. So, in the example above, the next renewal date for the annual plan would be July 15th of the following year.
Is that answering your Question Ruben? So the $200 pa is equal to $16.66 pm?