Would you buy something with a monthly fee or yearly fee?

We are doing a marketing paper and we have a proposed service that could be priced as a monthly 'subscription' fee of $5-$10. (or a year of service for $49, not recurring)





Are monthly subscriptions a big turn off to consumers? Is there any data/research to say that you get more/less consumers with a smaller subscription fee vs a large, one-time charge?





I assume there are some consumers that will absolutely not buy anything with a recurring fee. However, the $5/month is a lot cheaper to 'try the service out' instead of buying to service for $49. This makes it a smaller decision for the consumer and more sales overall? However, if customers decide to quit after 3 months we only get $15 instead of $49...





For the purposes of our hypothetical business, which is better?

Would you buy something with a monthly fee or yearly fee?
Ugh, monthly fees! With more things looking to move into monthly fees instead of higher fixed, one-time payments (like Microsoft Live and many online video games), I worry that I am being nickel and dimed to death. The only thing I pay a monthly fee on is web hosting, since hosting companies can go belly up at any moment and I don't want to give them any more cash than I have to. They gave me a free month to try everything out; if they hadn't I would not have signed up. But I'm just a consumer.
Reply:As a consumer there are numerous services i purchase on a monthly fee. I like it better than upfront payment myself provided the service is value for money.





There is also the added security that if i don't like the service i can just cancel it, or if the provider goes bust i don't lose a whole stack of money.





Just my thoughts....
Reply:For example one thing i look at when picking out a credit card is to see if there is an annual fee....

hotels