NOTE: The information below related to Chargify’s 2010 pricing and business model. Please contact Chargify for up-to-date pricing.

This past week our top support question was, “What is a free customer?”  Chargify’s pricing plans are based off of the amount of paying customers you have, so it is important to understand the difference between a paying customer and a free customer, as it affects the amount we charge you each month.

What constitutes a free customer?

A free customer is one that has not paid you for the current month we are billing for.  A common point of confusion on this is when someone pays you once a year for a subscription.  If you charge a customer’s card once a year, they are not considered a free customer for the other 11 months they are not billed because they have already paid you for those months.

What constitutes a paying customer?

A paying customer is one of your users who paid you for the month that we’re billing you.  If you charge your customer $10/month, every month, then we’re going to count them in your paying customer count each month that we bill you. If you charge them once, for a whole year, we’re still going to count them in your paid customer count each month, because they paid you for those months.

In short, it doesn’t matter when you collected money from your user, if they paid for the month (even if they paid in advance) in which we’re billing you for your Chargify service, then they will be counted as one of your paying customers.

Have a question you would like to see answered on our blog next week? Leave us a comment below!