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Pricing & Costs

Is a Monthly Subscription Website Worth It? | Compared with the Upfront-Fee Model

Pricing & Costs

Whether a monthly subscription website is worth it depends on how many years you use it and on what the monthly fee includes. If you want to keep upfront costs low and launch quickly, a monthly plan is a good fit; the longer you use the site, the closer the total gets to the upfront-fee model. When comparing, calculate on equal terms, right down to whether updates and maintenance are included in the monthly fee.

Whether a monthly plan pays off depends on how many years you use it

A monthly plan is a pricing model that keeps the upfront cost small and runs the site on monthly payments. The upfront-fee model means paying a lump sum when the site is built, and after that paying only for maintenance and similar services.

Which one is better depends on how many years you use it. Over a short period, a monthly plan costs less in total; over a long period, the two can reverse. How many years it takes to reverse depends on how each price is structured.

The table below shows an example calculated using the lower limits of our pricing. All figures exclude tax and are the "from" lower-limit values.

Period of usesite-factory (¥30,000 upfront, ¥7,000 per month)Custom-built site of about 5 pages (¥250,000 upfront, ¥3,000 per month)
1 year¥114,000¥286,000
2 years¥198,000¥322,000
3 years¥282,000¥358,000
5 years¥450,000¥430,000

The formula is the upfront cost plus the monthly fee multiplied by the number of months. In this example, the totals reverse at about 4 years and 7 months (55 months). If you plan to use the site for more than five years, the upfront-fee model with its lower monthly fee comes out cheaper in total.

That said, this table compares price alone. The way the sites are built, and the amount of human time invested in them, also differ. site-factory is a format in which AI takes the lead so the site can go live quickly, while custom-built sites are a format in which creators spend time on strategic planning and design. Even if the totals are the same, what you get is not.

Put the work included in the monthly fee on equal terms

The easiest thing to get wrong when comparing monthly plans is the difference in the work included. Even at the same monthly price, the real value changes if the work included is different.

The table below summarises the items to check.

ItemWhat to confirm
Server and SSLIncluded in the monthly fee, or charged separately
BackupsFrequency and retention period
Core and plugin updatesWho performs them, and how often
Edits to text and photosWhether included, and whether there is a limit on the number of requests
Posting news itemsWhether included
Adding pagesWhether included, or quoted separately
Design changesWhether included, or quoted separately
ReportingWhether a monthly report is provided

For example, our custom-built sites, from ¥3,000 per month, include the server and SSL, daily backups, weekly updates, daily morning monitoring, a monthly report, and edits to page content (unlimited requests). Adding fixed pages and changing the design are quoted separately.

When comparing, list the work included, then line up the totals with the extra costs for anything missing added in.

Who a monthly plan suits, and who it does not

A monthly plan suits people like these:

  1. Those who want to keep upfront costs low and launch quickly. For example, just after opening, or when testing a new line of business
  2. Those who do not have the capacity to manage the website themselves. That is, those who want to leave updates and maintenance to someone else
  3. Those who are likely to rebuild the site within a few years. For example, when the direction of the business may still change

A monthly plan does not suit people like these:

  1. Those who plan to use the same site for close to ten years. The longer you use it, the more the monthly fees add up
  2. Those who want to spend time on detailed refinements. Because a monthly plan follows a set format, it can offer less freedom
  3. Those who want to pay the cost in one go and keep monthly payments down

Six things to check before you sign

Before signing up for a monthly subscription website, check these six points.

  1. Is there a minimum contract period? If so, how many months?
  2. What is the procedure for cancelling partway through, and what does it cost?
  3. How does the contract describe what happens after cancellation?
  4. Under what circumstances can the monthly fee be increased?
  5. What work is not included in the monthly fee, and how much does it cost?
  6. Does the contract renew automatically, or is a procedure required?

Point 3 in particular is easy to overlook. If you cancel, does the website go offline, or can it stay up? Read the contract and check exactly how those conditions are written. If anything is unclear, ask the web production company to answer in writing.

Common mistakes when comparing monthly plans

Choosing on the monthly price alone

Even if the monthly fee is low, if little work is included you will pay extra every time something needs updating. List the work included and compare the totals.

Skimming past the minimum contract period

Some people assume they can cancel a contract with a minimum term at any time. Check in the contract when you are able to cancel.

Forgetting the maintenance costs of the upfront-fee model

The upfront-fee model also incurs annual costs for the server, domain and updates. Comparing upfront costs alone makes monthly plans look expensive.

Not checking the features your business needs

If you sign up without checking whether you can use the features you need, such as bookings or multiple languages, you will face extra costs later. Write out the features you need before signing.

How to compare costs

Work through the comparison for your own business as follows.

  1. Decide how many years you expect to use the site. If you are unsure, calculate for both 3 years and 5 years
  2. Write each company's upfront cost and monthly fee into a table
  3. Check the work included in the monthly fee against the same items as in the table above
  4. Add the cost of any work that is not included but that your business needs
  5. Line up the totals year by year
  6. Make your final choice not on the total alone, but also on how the site is built and how easy it is to ask for help after launch

How we think about pricing

We offer two formats: one that keeps the upfront cost low, and one that keeps the monthly fee low. site-factory starts at ¥30,000 upfront and ¥7,000 per month (excluding tax), with AI taking the lead so the site goes live quickly. Custom-built sites start at ¥250,000 upfront (about 5 pages), ¥500,000 (about 10 pages) or ¥800,000 (about 20 pages), with a monthly fee from ¥3,000, and creators spend time on strategic planning and design. Using a subsidy can reduce the cost further in some cases.

Things worth considering behind the numbers

In addition to comparing totals, consider these two points.

  1. How things are handled when your business changes. If the products or services you offer increase, can pages be added? Check whether adding them costs extra
  2. The effort of managing it yourself. If update work is included in the monthly fee, you can spend your time on your core business. Putting a price on that effort reveals the value of the monthly fee

A monthly plan is also, in part, buying time with money. If you have the capacity to handle updates yourself, a cheap monthly fee with little work included is enough. If you do not, a monthly fee that covers updates and maintenance works out better in the end.

Putting a price on the work included in the monthly fee

You can see the value of a monthly fee by comparing it with what the included work would cost if you did it yourself or commissioned it separately. Use the format of the table below to write out the figures for your own business.

TaskIf you do it yourselfIf you commission it separately
Server and SSLThe effort of contracting and renewingAnnual cost
BackupsThe effort of setting up and verifyingAdditional costs
Update workWeekly checking timeCost per task
Edits to text and photosTime spent entering content yourselfCost per edit
Dealing with faultsTime spent investigatingCost of emergency support

The effort of doing it yourself is also a cost, in the form of time. The more work the monthly fee includes, the less of that effort there is. Even if the monthly fee looks high, it can come out cheaper than commissioning everything separately.

How to judge

If you are unsure, decide using these four questions.

  1. Is speed to launch your top priority? If you want to start quickly, a monthly plan with a small upfront cost is a good fit
  2. Do you expect to keep using the same build for five years or more? The longer the period, the more the upfront-fee model with its low monthly fee wins out
  3. Do you have time to handle updates yourself? If not, a monthly fee that includes updates is worth it
  4. Do you want to spend time on design and strategic planning? If so, the upfront-fee model secures that human time

Choose whichever side matches more of the four.

When to review a monthly contract

There are opportunities to review things even after you have signed. The following moments are good guides.

  1. One year after signing. Compare the work you actually used with what the monthly fee covers
  2. When your business changes. Check whether you now need extra pages or features
  3. When a renewal notice arrives. This is a good chance to compare other pricing models

Updating the comparison table you first made at each review will help you decide more quickly.

FAQ

It depends on the upfront cost, the monthly fee and the work included. When comparing, look at the total multiplied by the number of years you will use it.

It depends on the contract. Check the minimum contract period and the cancellation procedure before you sign.

It depends on the web production company. With us, switching from site-factory to a custom-built site can be arranged after a consultation.

The work included differs from company to company. Check whether edits to text and photos, and posting news items, are part of the monthly fee.

If you are unsure how to compare costs, we will guide you through the figures

Tell us how many years you plan to use the site and what features you need, and we will give you an estimate of the total.

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