A subscription paid in advance for several deliveries.
What is a prepaid subscription
In a prepaid subscription, the subscriber pays for several deliveries at once and then receives them over time, for example 3 months paid upfront and shipped every month. The billing frequency is longer than the delivery frequency. In a pay-as-you-go subscription, the subscriber pays for every delivery.Why offer prepaid plans
- Cash upfront and lower churn during the prepaid period.
- Gifting: a prepaid plan makes an easy gift with a clear end.
- A reason to discount: subscribers accept a longer commitment for a better price.