The trick is to offer both $1/mo and $12/yr, so you have an option to choose from.... 😉

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I actually think offering only year price is better/more honest. There is no difference between 12 and 20 for an yearly price.

I mean some people may only want to try it for a month first. (I don't know the background about what service is this)

Also what I meant is that there is an illusion of choice and that results in much more people buying the service.