($1MM ARR SaaS here)

Monthly subscriptions churn on a monthly basis. Yearly subscriptions accumulate over time and usually remain active the whole year (IOW they churn on a yearly basis).

What's shocking to me is the $2 monthly tier. At that rate you're spending >25% on payment processing fees. Imagine a quarter of your subscribers just donating their money to MasterCard instead.

Yes, I wish he had charged me more. If I’m paying the juice anyway, let’s make the transaction worth it.

Suggestion: a “sourcehut is too cheap” annual subscription option at 2-3x the cost of the normal one.

We charge annual at $5k USD. 1/50 buys that.

I usually buy the year for the discount when I'm getting something (QB, BugSnag, etc) unless it's more than 3k, then I have a think about it.

If the prices are low enough that the yearly subscription could be the monthly price of another, then I can absolutely see this happening.

As it is, the highest yearly amount seems to be $100.

Paying things yearly makes 12x less effort in accounting.

the ironic part of offering discounts for yearly subscriptions, is that it gives customers an idea of what profit margins you have for the monthly plan. usually not something you want to do.

Less so in SourceHut's case, where all of the prices are basically arbitrary and the financials are public.

that's not necessarily true. Yearly subs give a business some additional benefits which can help to offset the 'lower' margins. There is some correlation, sure, but its not 1:1.