How does proration work for members changing plans?

A) Upgrades - Always Credits

Regardless of product or billing frequency, upgrades are charged immediately. The amount is adjusted based on how far into the billing period the customer is. However, the amount of the credit cannot exceed the cost of the new plan to ensure that customers do not receive credit balances.

Example: A customer on a $9/month plan upgrades to $99/month 15 days in. They get credit for the half-month already paid, and are charged $94.82 - not the full $99.

B) Downgrades - Depends on Billing Frequency

• Staying on the same frequency (monthly → monthly, or annual → annual): Nothing is charged right away. The new lower price simply kicks in at the next renewal.

Example: $100/month → $10/month = $0 charged now, $10 at next renewal.

• Changing frequency (monthly → annual, or annual → monthly): The new plan price is charged immediately, with no credit for unused time on the old plan.

Example: $1,000/month → $100/year = $100 charged immediately.

Recommendation for group owners and billing managers for when members downgrade or want to downgrade:

• Either ask the members to complete their cycle and then downgrade at the end of the billing cycle.
• Or issue a prorated refund like this - https://help.skool.com/article/84-how-to-refund-a-members-payment

Note: When changing the plans from VIP to Premium or from Premium to Standard, note that the deliverables within that plan would be revoked instantly. It's recommended for members to change plans at or near the end of the billing cycle.