Is it better to charge a monthly or a yearly membership fee for a cool online business?

Which one do people respond to more??

allow both. some ppl do prefer annual payment rather that monthly. more on small business and tips on running a more smoother and profitable one in this article

I think monthly. Then it looks like you are charging less (since it is broken up twelve ways) and people feel like they are not making as large of a commitment.

Good luck with your business!!!

If they shop once in a while a monthly fee will be good. If they shop regularly then I would charge a yearly fee. As they are the ones that will be the bread and butter of your business. Good luck.

Offer both. That way the people that dont want a year long membership still get what they want.

Monthly.... I think it is more flexible and people can fairly easy get out again if they dont like it... but I think you should have both options... you could charge for 11 months for a 1-year membership....

Offer both and do a small discount for paying yearly. You want that money coming in as quickly as possible and the discount might motivate your customers to go yearly upfront.

why not offer both monthly AND yearly membership fees? that way, if someone isn't sure that they want to commit for a year, they can try it out first. and you could offer a discount for people who sign up for a years membership. hey, it's win-win both ways!