| B2C random internet user here, it's more complex than that for me and not always about price. I'd say the thoughts go something like this: - is this a product that involves a lot of personal time to get started with and migrate away from? (example: cloud hosting for files and photos)? With this type of product, I'm going to spend more time on the initial 30 day evaluation, and if it suits my needs then I go right for the (multi)year contract. The personal investment is large (get all those photos uploaded, e.g.) so my chances of leaving after a few months are statistically unlikely. - is this a product that I can walk away from with no real loss? (music streaming service) well this a service which quality can vary month over month, I'm more likely to use monthly pricing just so I can cancel at any time if I don't like it. I have no real investment to your brand, yeah it's nice but there's 100 others out there I can move too easily. Usually with a multi-year discount, I'll buy the first year just to be sure and if I still like it after the first year, I'll buy multiple years. Just so I never have to worry about randomly missing a payment or somehow "losing" it (my login, my access, my files, etc.) but balance that against "how long will this company be around, really?" - it's a sense of security over time because I've invested a lot of personal time into the product. Walking away is not in my plans at the time. Third reason that doesn't fit for you but is also a thought: is this a donation to (open source project)? Will I give them more money - less recurring middle-man processing fees - by paying one lump yearly sum instead of donating monthly? I use Liberapay for some FOSS donations and they tell you to do this straightaway, one lump sum is better for the receiver than monthlies. |