Calendar billing is a pricing model in subscription-based businesses where customers are charged based on the passage of time, regardless of their usage of the service. This is typically done on a monthly or annual basis, and customers are charged the same fee each time.
Calendar billing is most appropriate when the service provided is always available and does not depend on usage. This could include access to a software platform, membership to a club, or similar. It is also a good option when the service has low or predictable usage. For example, a customer may only use a service once a month, and therefore a fixed fee makes more sense than a metered fee based on usage.
Some subscription businesses use calendar billing when they feel that the service is more valuable over a longer period of time. For instance, an online language course that’s more valuable to customers when taken over several months rather than just a few days.
Calendar billings provide customers with a clear and predictable fee, which can help to build trust and reduce the risk of customer churn.
