# Annual plan shown as a monthly price: up to +45% revenue/view

- Outcome: Won
- Page type: Paywall (App)
- Elements: Pricing
- Date shared: 2023
- Test run by: [Mojo](https://liftarchive.com/practitioners/mojo/)
- Commentary by: LiftArchive (our analysis, not theirs)
- Original source: https://www.revenuecat.com/blog/growth/mojo-60-percent-arpu-growth-five-months/
- Page: https://liftarchive.com/test/mojo-monthly-price-anchor-for-annual/

Showing the annual plan as a per-month price, billed annually, raised Mojo's new revenue per paywall impression by 45% in Brazil, 26% in Mexico and 8% in the USA. Mojo, a video editing app, ran this A/B test, and Michal Parizek wrote it up on the RevenueCat blog. The gain came from more paywall-to-trial conversions and more users picking the annual plan.

## Result

**+45% Brazil, +26% Mexico, +8% USA**

- New revenue per paywall impression, Brazil: up 45%.
- New revenue per paywall impression, Mexico: up 26%.
- New revenue per paywall impression, USA: up 8%. The effect was much smaller in this higher-income market.
- Drivers: more paywall-to-trial conversions and a larger share of annual plans.

## Control

The annual plan was shown as one yearly price.

## Variant

The annual plan was shown as a monthly figure with the yearly billing stated, in the format "$X/month, billed annually".

## Why it likely won (our reading)

- A monthly figure looks much smaller than a full yearly price, so the plan feels more affordable at first glance.
- The effect was strongest in lower-income markets, where a large yearly total is more likely to put people off.
- Seeing the annual plan as a monthly amount makes it easy to compare with the monthly plan, which pushes users toward annual.

## Caveats

Sample size, duration and confidence were not shared. Apple has rules on how prices can be shown, so check what's allowed before testing this format.

## How to run this test

- Hypothesis: If we show the annual plan as a per-month price, billed annually, then new revenue per paywall view will rise because the plan looks more affordable and easier to compare.
- Primary metric: New revenue per paywall impression
- Guardrail: Share of annual plans
- Guardrail: Cancellation rate in the first 7 days
- Guardrail: Refund requests
- Who should test it: Apps selling annual plans, especially in price-sensitive markets. Expect a smaller lift in high-income markets, as Mojo saw in the USA, and always show the full billed amount clearly.

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Credit: Mojo ran this test and owns the result. Summary and commentary by LiftArchive (https://liftarchive.com/test/mojo-monthly-price-anchor-for-annual/).
Usage: Free to use, quote and build on, with credit and a link: name the practitioner or organization that ran the test and link to its LiftArchive page. The results belong to the practitioners who ran and shared them; the summaries and commentary are LiftArchive's.