Monetization issue for Monday app developers

We started exploring Monday app marketplace a few weeks ago and during a technical feciability test me and my team ended up with a monetization issue in Monday for developers. (NOTE : Now all vendors are must to use Monday monetization)

The issue is considerable when the user downgrades plans. Assume that a user purchased Plan B which has 500 actions for 100 dollars. Use all credits within 2 days and then immediately downgrade to a lower tier plan A. In this case, according to what I understood they will get a credit for the unused amount ($100 * 28/30) this is a significant amount from the amount they paid for the plan. But all the credits have been used and since the pricing stratergy is x amout of actions per month cost has already incurred for app developers. But the user can use the credited amount to purchase the lower plan even without any cost there after.

In an ideal downgrade case the user gets to keep all the credits that they paid for during that billing period and the new downgraded credit will be allocated only at the next billing cycle. Here they don’t get a credit or any unused amount of credits back. This is where we are stuck in the technical feasibility consideration. Hoping for a solutions from the API team.

Thanks.

Hi ,
My understanding is based on Monday’s developer documentation and a past support responses. If there’s an official guideline that clarifies this further, I’d appreciate the reference.

Simple solution, track ops used, if they downgrade to below what they’ve use then the app stops working until they upgrade again - or the renewal date passes. When they downgrade they are charged a prorated amount for the new plan until the renewal date of the original plan. If they downgrade they just lose their ability to use the app until the reset happens.

Nothing is broken or wrong here.

Hi Cody thanks for the solution. This is exactly what we are currelty into. [To be in the same page we are trying our best to stay with the given APIs by monday without reinventing the wheel]

But one thing that make me always go confuse is that the prorate credit allocation. So according you what you have mentioned “When they downgrade they are charged a prorated amount for the new plan until the renewal date of the original plan” this newly prorated amout for new plan will be taken from the unused credit amount that the user had not used from the original plan (which is purely time based and early in the billing period this is considerable).

So that’s like their downgrade is paid by unused time based amount.

Correct. So when they cancel the $50 plan at 15 days, they get a $25 credit. Their first period on the $25 plan is only 15 days. So they get $12.50 from the $25 credit used. Then at the renewal date (day of the month they first purchased) the other $12.50 gets used and they get billed the remaining $12.50, then they get billed $25 each month going forward.

Is it something a customer could take advantage of? sure. Is it something significant enough that as a developer I would stress over it? no. It definitely would not stop me from developing for the platform (other things might, but not this!). Its not going to be often enough and significant enough that its going prevent profitability at all.

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