billingI’m looking for any research or tests on weekly vs. monthly billing. I guess, there must be a good reason why most subscription services like Spotify or Netflix make use of monthly billing. However, I could not find any empirical evidence on monthly plans being more successful.
TL;DR: Until recently the payment logistics (invoicing, bank fees, mental drain) and businesses’ cash flow incentives were aligned towards longer billing cycles. So the reasons you encounter monthly rather than weekly billing cycles are related to tradition and practicality.
In case you’re under 40, consider non-automated payments. Picture yourself receiving an invoice in your postbox, and needing to send a check each week; or worse, needing to actually go to the post office. It’s kind of draining in the long run.
The other interesting perspective is that of the business owner. You want to keep your bank fees low, and maximize available cash, so getting paid a larger amount less often is usually better than getting smaller sums month to month or - worse - week to week (each with its own bank fees).
There might be more recent research on what might be better in the internet age. But if I were to guess, I’d expect it to point towards PAYGO models with automated/pre-paid top-ups or retainers.
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