When subscribing, you may choose between monthly or yearly billing, and we will automatically charge your card accordingly at the beginning of the billing period. Note that your subscription is set to auto-renew unless you cancel it. In this case, you will be able to use Avocode until the end of the billing period, after which you will lose access to all your projects and designs in  Avocode.

Pro-rated billing for new team members

If you add a new team member during the billing period, we will charge you a prorated amount to cover the cost of your new member's license for the remaining time of the already running billing period.

Example 1: Adding a member in the middle of a MONTHLY billing period (30 days) 

Let's say you bought the Company plan subscription for 5 people on Nov 5th, and we charged you $20 x 5 = $100 for the period between Nov 5th and Dec 5th

  1. Say, you add 1 new member 10 days into your billing period (in this case on Nov 15th) so you have 20 days left until the next payment on Dec 5th
  2. Now let's do the math. The daily cost per user on the monthly Company plan is approximately $20 / 30 days = $0.67. 
  3. This means that you will need to pay $0.67 x 20 days = $13.33  for the 6th member you added. 
  4. You will pay this amount at the beginning of the next billing period, in this case, Dec 5th
  5. So let's see your bill for the period between Dec 5th and Jan 5th: we'll charge you $20 for each member of your team plus the $13.33 you own from the previous billing period: 6 x $20 + $13.33 = $133.33
  6. And what about next month? If you don't add or remove any people in the upcoming billing period, next month you'll be charged the standard 6 x $20 = $120.

Example 2: Adding a member in the middle of a YEARLY billing period (360 days)

Let's say you bought the Company plan subscription for 5 people on Nov 5th, and we charged you $18 x 5 members x 12 months = $1,080 for the period between Nov 5th, 2018 and Nov 5th, 2019. 

  1. Say, you add 1 new member 1 month and 10 days into your billing period (in this case on Dec 15th) so you have 10 months and 20 days (or 10 x 30 + 20 = 320 days) left until the next payment. You will pay for the 6th member's license at the beginning of the next month. In this case, that would be on Jan 5th.
  2. Now let's do the math. The daily cost per user on the yearly Company plan is $18 / 30 days = $0.6 
  3. This means that you will need to pay approximately $0.6 x 320 days = $192 for the 6th member you added. 
  4. You will pay this amount at the beginning of the next month in this case, Jan 5th
  5. So let's see your bill for the period between Nov 5th, 2018 and Nov 5th, 2019:
    $18 x 5 members x 360 days = $1,080 plus
    $0.6 x 1 member x 320 days = $192
    $1,080 + $192 = $1,272 total
  6. And what about next year? If you don't add or remove any people in the upcoming billing period, next year you'll be charged the standard $18 x 6 members x 12 months = $1,296 

Pro-rated billing for removed team members

The concept of proration also works when you remove a member during the already pre-paid billing period.
 
 
Learn more:

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