Question: Can you explain how Drip annual pricing works so I understand my billing better?
Absolutely! Annual Accounts Give You 2 Months of Bonus Credits
When you choose a Drip Annual account, you're locking in extra value for your membership. In fact, based on your current plan level and subscriber count, you receive 2 months free when you choose an annual plan.
But what happens when your subscriber count grows beyond your current account level?
Since Drip pricing works off a metered basis (how many subscribers you have), we base your purchase and 2 bonus months on a credit system.
And when your subscriber count brings your account to the next tier, your credits simply get used faster. When your account hits 0 credits, we automatically continue your membership at the next annual level which includes another 2 months in bonus credits at that new rate.
Darcy starts her Drip account at the Basic Level ($49/month - $490/year). She has 1200 subscribers when she starts her account on March 5 (after a 21 day free trial she started in mid-February).
With her annual purchase of $490, Darcy's account starts with $588 in credits ($49 x 12). She received $98 in free credits by choosing the annual plan.
Every month, on the 5th, her account credits decrease by $49. In September, her successful marketing results in her subscriber count surpassing the 2500 threshold.
The next billing cycle, October 5, her credits begin decreasing by $99/month at her new subscriber tier. She has $245 in credits remaining at this point.
In December, when her $47 in remaining credits is not enough to cover the $99/month rate, Darcy is charged $990 for the Pro annual plan, resulting in the addition of $1188 in credits ($99 x 12), including the 2 months free at this rate.
You Just Put Me into a Math Coma. Can You Explain It Differently?
We get it: math isn't everybody's forté. So think about buying an annual Drip plan like a great investment with your money.
It's not easy to get a 16.66%+ return on your money, but that's exactly what you get with the Drip annual plans. You're investing a set amount on your email marketing automation software, and getting 16.66% more credits than you purchase.
Or think of it like buying a gift card to your favorite restaurant at one of those warehouse clubs, where they give you $100 worth of gift cards for just $80. Order a lot off the menu and you'll use up the gift card quickly. Or extend the life of the gift card with smaller purchases.
That's how the Drip annual plans work. You stretch your dollars further, and use your credits based on how much you're using your membership (i.e., how many subscribers you have in your account).
What If My Subscriber Count Results in a Downgrade of Account Level?
Your account level (Basic, Pro, High Volume) is based on the highest number of subscribers you've had the previous month. This is called the "highwater mark."
Accounts downgrade the month after the highwater mark of the subscriber count falls within the lower account level. This prevents nefarious people from trying to game the system by dipping their subscriber count below the threshold right before the billing cycle.
Here's another example to explain what that looks like.
Ryan starts out with a Pro level account with an annual purchase. This means his initial $990 purchase results in $1188 in Drip credits.
Using engagement workflows and Drip's automatic pruning feature, he reduces his subscriber count below 2500 in late April. Since his maximum subscriber count during that month was above 2500, he's billed one more time at the Pro level on May 5.
Then in June, his credits are based on the Basic level ($49/month) instead of Pro.
In mid-October, Ryan once again is above the Pro threshold. So at his next billing interval (November 5 in this example), his account is again based on the Pro amount.
Note: All account billing and credit consumption is based on the day of the month your account became active (i.e., became a paid account after a trial or surpassing 100 subscribers in a Starter account).