Charge full commitment amount upfront


This article describes the how Product Managers setup a commitment and the possibility to charge upfront. When setting up a pricing plan commitment, you can choose to enable the "Charge upfront" option. A discount can be provided to customers who opt to commit to the plan.


How to setup pricing plan commitment?

In the commitment section, it is possible to configure which control is responsible for the "commitment period". Then you can configure in the section "Pricing rules" how much the user will pay per period - by including this control.  


a. Commitment control - available controls that were created in the Design section can be chosen. 
b. Commitment Period- define a certain period of time.
c. Available options for "Charge upfront": No, Upfront once, Upfront always.

Depending on the "Charge upfront" values different billing strategies will be applied: 

"No" - a commitment for a given period will be applied. The customer can not reduce the purchase amount to less than the initial. 
"Upfront once" - bills the customer for the full commitment period in the first month. The customer will still be able to make changes to the subscription as long as the billable amount after changes is above the commitment selected upon purchase. These changes will be billed as per the billing cycle that applies normally.

"Upfront always" - bills the customer for the full commitment period in the first month, but the customer will be required to create new subscriptions for any changes they want to make. Upon creating a new subscription, the customer will again be billed for the full commitment period of the new subscription in the first month. 


Related Article

Customer Prices: Price configuration

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