[ylg]

> If people are willing to give you an interest free loan it's probably a decent indicator that you could charge more per month.

I'll second that. As a customer given the option of paying $1 a month or $12 a year, I'll chose the former unless I've had a stroke. Yearly prepayment is wasteful, that money could be put to use for me instead of you.

So, if a customer agrees to pay me annually the same they'd pay monthly rather than staying monthly or leaving if that's not an option, I've made a mistake in valuing my product. Moreover, by replacing apples with oranges, I'm risking turning away customers for whom the price is right but not the structure in exchange for income statement foofaraw (and I still haven't addressed my original mistake.)

> As an aside it's a great validator for your business model if a lot of people are willing to pay a year up front.

That or the sales context is one where rational thought is …limited; candy bars at kid height in the checkout aisle. And, now I'm imagining buying a giant box of a years worth of candy. Time to go outside.