Our tiered pricing model is based on how many Customers you manage through Chargify:
- Someone who paid you for the current month is a Customer. For instance, if you charge someone $25/month, then we're going to count him as your customer each month. And if you charge him once for a whole year of service (a product that has a 12-month billing cycle), then we're going to count him each month, because he paid you for all 12 months.
- Someone who owes you for the current month is a Customer. For instance, if we're trying to collect payment from someone in June and July before giving up and cancelling them, they will be counted as Customers in June and July. You can change your Retry & Dunning settings to shorten the time we spend trying to collect, if that makes more sense for your business.
- Someone subscribed to your free product is not a Customer. A free product is one that is completely free (it has a $0 recurring charge, $0 setup fee, $0 trial fee).
- About Free Trials on Paid Products: Users DURING the free trial period of a paid product do not count, but when the free trial ends, they DO count. When someone uses up his free trial on your product, we start trying to collect payment from them because they have entered the paid portion of your product. When we start trying to collect, they become your Customer. TIP: if your business has a lot of free trial users who probably won't convert to paid customers, then you should set up two separate products: one that's completely free (like 30 or 60 days free with no paid portion at all) and another that's your paid product (with no trial period built in). For the people who want to upgrade to your paid product, use our upgrade function to move them from your free trial product to the paid product. This will result in us only counting those people who end up on the paid product.