The retention rates of companies we all know

A week ago, I saw Daniel Layfield’s post about how all subscription companies eventually figure out the Monthly to Annual Plan pricing trick.

The trick is to price your 12-month plan slightly more than your average LTV for monthly users.

So, if your average user stays around for 4 months, price your annual plan at 5 months.

You get to boost LTV for these users by 25%, which is a huge win for not much effort.

When Daniel did this at Codecademy, it was one of the most effective tactics they ever tried.

So it got me thinking: what *are* the retention rates of some subscription companies we all know?

After gruesome 15 minutes of pricing page surfing, copy-pasting, and cosplaying Patrick Campbell, I had the answer.

How was this calculated:

Ex: Webflow: $29 per month. $276 annual. 276/29 = 9.58. ≈ 8 months(as they want the annual to be slightly more months than the monthly plan LTV