vBarter - Annual Fees vs Monthly Fees
Posted by Bruce Kamm on June 07 2010 06:24 AM

Most exchanges charge monthly fees rather than annual fees. The reason for it being better cash flow, but even more important attrition. 

When it comes to a member having to pay their annual fee, which is about 10 times more than the monthly fee, they think twice about continuing their membership and consider whether or not they are getting enough value and enough trade opportunities to warrant paying an annual fee. And, many more members close their account when it comes time for the annual fee, than any other time. It is for the same reason that every health club & fitness center went from annual membership fees to monthly fees. 
People don’t think about small charges every month on their credit card. They do think about a much larger annual fee when it comes time to renew.
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