When creating Addons for a Subscription Product, you may wish to charge for the addon accounting for the subscription frequency.
For instance; imagine that a merchant offers two subscription plans:
- Monthly for £10.00 per month
- or Yearly for £100.00 (2 months free)
The merchant also offers an addon for £5.00.
Now, let's that a look at how this plays our depending on whether Prorated addons are switched on or off. Let's start with "off"...
Non-prorated Addons
It's important to note, that when non-prorated the addon price remains the same regardless of the frequency of the subscription.
If an end-user opts for the monthly plan, they'll be charged £15.00 per month (that is £10.00 for the plan and £5 for the addon).
If the end-user opted to pay yearly, then they'll be charged £105.00 per year (that is £100.00 for the plan plus the £5 addon). The addon is not multiplied up by 12 to give a yearly figure as it may have been intended.
Prorated Addons
As with the above, for a monthly plan, the end-user will be charged £15.00. Simple.
But when opting for a yearly plan, the addon price is multipled up from the given "monthly" intended price of £5.00 to £60.00 (£5.00 x 12 months). Currently, we do not allow you to offer monthly discounts here.
The end-user will therefore be charged £160.00 per year.