Annual vs Monthly Plan: Which Should an Affiliate Recommend?

The first question almost every new thMenu affiliate asks is the same: "When I pitch a restaurant, should I push the annual plan or the monthly one?" Data from Fehmi, a Karşıyaka-based affiliate who logged 32 conversions over nine months, shows this single decision moves commission performance more than any other variable.

Cash-Flow Side by Side

thMenu Pro annual is priced at $290, compared to $348 if billed 12×$29 monthly — a $58 saving for the restaurant. From the affiliate's side, the annual sale generates $58 in gross commission, but the payout drips across 12 months at roughly $4.83 per month.

Monthly billing pays the affiliate $5.80 at the close of each cycle's hold-release window. On a per-payout basis monthly looks higher, but the real swing variable is churn, not headline numbers.

Churn and Refund Math

Of Fehmi's 32 conversions, 19 chose annual and 13 monthly. Annual refunds stayed under 2%; monthly subscribers hit 18% churn within six months. A restaurant that has already paid upfront tends to keep using the product — "I already paid" psychology — and any cancellation only takes effect at renewal anyway.

Stripe's refund window is 14 days, during which any commission can be clawed back. The annual drip absorbs this risk by spreading commission across 12 monthly slices, with the first slice unlocked after the refund window closes.

The Annual-Bias Strategy

In Izmir, Fehmi opens every restaurant pitch with the annual plan as the default. If budget objections appear, he falls back to monthly, but always frames the coupon around the annual deal. Result: 59% of his 32 conversions chose annual.

• Annual = 12 months of guaranteed dripped income
• Monthly = faster cash but 18% six-month churn
• Annual-biased mix LTV: $214 vs $87 for monthly-only sellers

FAQ

Why is the annual commission not paid upfront? Drip-release protects against Stripe refund clawbacks; spreading the payout across 12 months minimizes financial exposure on either side.

What happens if a restaurant switches from annual to monthly? The annual term completes first; at renewal they can switch and the affiliate referral remains attached, with commission continuing on the new monthly cycle.

Which restaurants suit annual best? Operators with 12+ months of trading history, year-round openings, or franchise chains see lower churn and better fit on annual plans.

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