Understanding how annual billing works

Users may choose between monthly billing or annual billing. Discounts are typically applied to annual subscriptions.

TrustReq offers a flexible and user-friendly pricing model designed to accommodate the needs of legal teams of all sizes. Our per seat pricing ensures that you only pay for the team members you need, making it a cost-effective solution for managing your compliance requirements. In addition to our standard monthly billing, we offer discounts for annual subscriptions. Here's how it works and what you need to know:

Annual Subscriptions and Discounts

To provide even greater value, TrustReq offers discounts for users who commit to an annual subscription. By choosing the annual plan, you can benefit from a lower average monthly cost compared to the standard monthly billing. This arrangement follows a common practice among SaaS companies, where users pay upfront for the year and enjoy reduced rates.

Consistent Billing Frequency

One important aspect to keep in mind is that all users within a team must have the same billing frequency. This means that either everyone on the team, including the owner, is on a monthly plan, or everyone is on an annual plan. This consistency is crucial for streamlined billing and account management.

Adding Team Members

We understand that your team may grow throughout the year. When adding new members to your team, the billing process follows specific rules to ensure fairness and simplicity:

1. Mid-Year Additions: If you add a new user to your team during the year, the billing for that user will be pro-rated. This means you will be charged a proportional amount for the remaining time between the date the new user is added and the next annual billing date.

2. Pro-Rated Billing: For example, if you add a new team member six months into your annual billing cycle, you will be billed for only six months of service for that user. This way, you only pay for the time they are actually using the service.

3. Pre-Payment: When you choose an annual plan, you pre-pay for each team member for the entire year. As you add more members, the additional cost for these new members will be billed at the time of their addition, reflecting the pro-rated amount for the remaining period.

Managing Your Team

While it might seem daunting to pre-pay for additional team members, it's essential to understand that this structure is designed to offer you the best value. By committing to an annual plan, you lock in the discounted rate for all your users, ensuring cost savings over time. However, we also recognize that you might not add all your team members at once. That's why our pro-rated billing approach ensures you are only charged for the actual time each new member uses the service.

Practical Considerations

Practically speaking, you might choose to add team members as your needs evolve throughout the year. When you do, rest assured that TrustReq’s billing system will handle the pro-rated charges efficiently, ensuring that you maintain the same annual billing date for all users.

Example Scenario

Let's say a new user is considering the a monthly billing plan, and the user pays $149 per month, plus HST. Since HST is 13%, the monthly cost would be calculated as follows:

• Monthly cost: $149

• HST (13%): $149 * 0.13 = $19.37

• Total monthly cost: $149 + $19.37 = $168.37

So, over the course of a year, the total cost would normally be:

• Total annual cost: $168.37 * 12 = $2020.44

Annual Billing Plan with a 15% Discount

Let's assume that, under the annual billing plan, the user receives a 15% discount, and the user pays upfront for the year.

After one year, a monthly subscription would cost $1788+HST, but an annual subscription would cost $1519.80+HST (15% less).

By choosing the annual billing plan, the user saves $303.07, which is calculated as follows: $2,020.44 (monthly plan cost) minus $1,717.37 (annual plan cost).

Adding a New Team Member Mid-Year

Let's consider a scenario where a new team member is added six months into the annual billing cycle.

Annual Plan Addition (Pro-Rated)

The pro-rated cost for adding a new team member six months into the annual billing cycle would be half of the annual cost:

• Pro-rated annual cost: $1,717.37 / 2 = $858.68

So, the cost for the remaining six months for the new team member would be $858.68.

This example highlights the significant savings and cost efficiency of choosing an annual billing plan with TrustReq.

Conclusion

At TrustReq, we aim to provide clear and transparent pricing to help you make the best decisions for your team. Our annual subscription option offers significant savings and the flexibility to grow your team as needed. By understanding how our billing system works, including the pro-rated charges for new members, you can take full advantage of our services without any surprises.

If you have any questions about our pricing or need assistance with managing your account, please don't hesitate to contact our support team. We're here to help you get the most out of TrustReq.