Aloware offers flexible billing, no contracts. Initial prorated user charges. Monthly plan additions prorated next month. Quarterly/annual plans adjust monthly. Separate usage fees. Post-paid invoicing for >$2,500/month with contract.
When you sign up for Aloware, you can choose between our monthly, quarterly and annual plans. Unlike most SaaS companies out there, we do not like to "lock in" our clients with enforced contracts, pre-purchased licenses, and legal language. Instead, you have the freedom of adding and removing users at any time during your subscription. In this article, we will talk about how proration affects your invoice when you add or delete users from Aloware.
Your initial invoice
When you convert your trial to paid, we immediately charge you for the existing number of users in your account. Since our subscriptions start at the beginning of the month, your first invoice usually shows a prorated charge compared to your quote, and you will receive the full charges on your next invoice. We have discussed our "start of the month" billing practice here.
In this example, our client signed up for the uPro plan at $70/user/month. Since they converted on the 21st, we charge them a prorated amount of:
December 23rd to 31st --> 9 days out of 31 days in December
Plan Amount = $70 x 9 / 30 = $20.32
3 users at $20.32 = $60.96
This is charged on December 23rd.
Then, at the beginning of next month (January 1st), they will receive a full invoice of 3 x $70 = $210.
Subscriptions and usage charges
As you already may know, Aloware charges certain VoIP elements separately, such as outbound calls on iPro plans, and non-agent automation and broadcast messaging (see this). We charge usage fees to your Aloware credits that get automatically topped up (here is the how). In some cases, you might end up with a negative balance, that is charged on your invoice as previous debt.
Aloware subscriptions are pre-paid, meaning you will be charged at the first of the month for your user existing in your account at that time.
Adding users to a monthly plan
When you add new users to a monthly plan in the middle of a billing cycle, we create an unbilled charge for your subscription. The unbilled charges are prorated (daily) and are not invoiced until the end of your billing cycle, which is the beginning of the next month. So on next month's invoice, you'll see some prorations:
In this example, one user was added on Nov 23rd, and received a prorated charge on Dec 1st.
Adding users to a quarterly or annual plan
Quarterly and annual plans offer the same flexibility in adding users. However, we run a true-up process on the 1st day of every month to adjust your subscription user count to actuals. These will create an invoice (just like monthly), that is prorated according to your term, and is billed to your credit card on file.
The invoice will be charged on the first of January.
What about those pesky $100 invoices I receive?
Glad you asked :) those are usage charges, which are explained here. For more information, you can review our other articles in this space:
Do you have post-paid invoicing options?
Yes. Aloware offers post-paid invoicing for subscriptions above $2,500/month and requires a contract. To utilize post-paid invoicing, please contact your account manager.