This article describes key concepts for using individual pricing plans with and without recurring billing options.
An individual pricing plan enables you to offer your customer a price for running a single listing. Pricing listing options are self-explanatory on the pricing plan data entry form and are not covered in this article.
- Listing Duration - how long a listing will run that is created using the plan, for example 3 months.
- Recurring Billing - if enabled, the ability to charge your customer multiple times for their listing during the duration of the listing, for example every month.
- Recurring Billing Interval - if recurring billing is enabled, how often your customer is charged for this listing, for example every 3 months.
- Recurring Billing - Number of Times - if recurring billing is enabled, how many times your customer is charged for this listing, for example 4 times.
- Price - The one time charge for the listingor the recurring charge for the listing if recurring billing is enabled.
Individual Pricing Plan Examples
Here are 3 examples of individual pricing plans with and without recurring billing.
Recurring or Customer Charge
Cust is charged $999 1 time at the start of the listing. Listing runs for 1 month.
Interval = 3 months
# of times = 4
Cust is charged $199 every 3 months for a year. Listing runs for 12 months.
Interval = 1 month
# of times = 12
Cust is charged $99 every month for 12 months. Listing runs for 12 month2.
Things to Avoid and Keep in Mind
Pricing plan setup can be complex as it provides a lot of flexibility for pricing plan design. Here are some things to avoid when using pricing plans and recurring billing:
- Recurring Billing Duration > Listing Duration - The recurring billing interval times the # of times billed should not exceed your Listing duration. For example you should not charge someone every month for 24 months for a listing that only lasts 12 months.
- Price - the price you enter for the plan is the amount charged to your customer:
- Once if the plan is not recurring. This is charged at the start of the listing.
- If recurring, every recurring billing interval, for example the price is charged every month.
- Long Term Listings and Recurring Billing - 3, 5, 10, 20 year listing durations. The longer your listing duration the more likely your customer's credit card will expire, be reissued, limited in some way, etc. This can create confusion or other issues with customers. While not required we recommend you setup listing durations at 3 years or less.
- Payment Processor Limitations - Whether you have your own merchant accounts or outsource this to processors such as PayPal or Stripe, you should keep up to date on any other limitations or processing rules defined by your Processor. Some processors may limit the total duration of a recurring billing charge, for example not longer than 2 years.
- Simplicity - it's best to have a smaller number plans that are easily understood by your customers than dozens of plans to choose from.