What percentage of people cancel recurring payments?

Average churn is 5-10% monthly. With good content and engagement, it can be less than 5%.

Should I offer monthly and annual plans?

Yes. The annual plan with a discount (equivalent to 2 months free) reduces churn and provides upfront cash.

What happens if a payment fails?

Stripe automatically retries. If it fails multiple times, the subscription is canceled.

What percentage of people cancel recurring payments?

Average churn is 5-10% monthly. With good content and engagement, it can be less than 5%.

Should I offer monthly and annual plans?

Yes. The annual plan with a discount (equivalent to 2 months free) reduces churn and provides upfront cash.

What happens if a payment fails?

Stripe automatically retries. If it fails multiple times, the subscription is canceled.

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Monetization

Recurring Payment

A recurring payment is an automatic charge that repeats periodically for a service or access.

Crealo Team

Creator economy experts helping creators monetize their skills

Published: 2026-01-25Updated: 2026-02-07

Definition

Recurring payments are automatic transactions processed periodically (monthly, quarterly, or annually) without the customer needing to take any manual action. They're the foundation of the subscription and membership model, providing predictable and sustainable income for creators.

Examples

1A $19 monthly subscription charged automatically each month.
2An annual plan of $149 that renews every 12 months.
3A quarterly membership of $39 with automatic billing every 3 months.

How to apply it

Set up recurring payments through Stripe Connect on Crealo. Offer different billing periods (monthly/annual) with a discount on the annual plan.

Frequently asked questions

Related terms

Monetization

Subscription

A subscription is a recurring payment model where the customer pays periodically for ongoing access.

Monetization

Membership

A membership is an exclusive access program for which members pay on a recurring basis.

Business

MRR

MRR (Monthly Recurring Revenue) is the predictable income you receive each month from subscriptions.

Technical

Stripe

Stripe is an online payment processing platform used by millions of businesses.

Put what you learn into practice

Create your free Crealo account and start selling digital products.

Create free account

Back to glossary

Monetization

Recurring Payment

A recurring payment is an automatic charge that repeats periodically for a service or access.

Crealo Team

Creator economy experts helping creators monetize their skills

Published: 2026-01-25Updated: 2026-02-07

Definition

Examples

1A $19 monthly subscription charged automatically each month.
2An annual plan of $149 that renews every 12 months.
3A quarterly membership of $39 with automatic billing every 3 months.

How to apply it

Set up recurring payments through Stripe Connect on Crealo. Offer different billing periods (monthly/annual) with a discount on the annual plan.

Frequently asked questions

Related terms

Monetization

Subscription

A subscription is a recurring payment model where the customer pays periodically for ongoing access.

Monetization

Membership

A membership is an exclusive access program for which members pay on a recurring basis.

Business

MRR

MRR (Monthly Recurring Revenue) is the predictable income you receive each month from subscriptions.

Technical

Stripe

Stripe is an online payment processing platform used by millions of businesses.

Put what you learn into practice

Create your free Crealo account and start selling digital products.

Create free account