# Annual pricing
<a name="annual-pricing"></a>

An annual pricing model enables you to offer products to customers who can purchase a 12-month subscription. As an example, the subscription pricing can provide up to 40 percent savings compared to running the same product hourly for extended periods. The customer is invoiced for the full amount of the contract at the time of subscription. For more information about how annual subscriptions are presented to customers, see [AMI subscriptions](https://docs.aws.amazon.com/marketplace/latest/buyerguide/buyer-ami-subscriptions.html) or [Pricing models for paid container products](https://docs.aws.amazon.com/marketplace/latest/buyerguide/buyer-what-is-aws-marketplace-for-containers.html#what-is-aws-marketplace-for-containers-pricing). 

Considerations when working with an annual subscription include the following:
+ Annual pricing is defined per instance type. It can be the same for all Amazon Elastic Compute Cloud (Amazon EC2) instance types or different for each instance type. 
+ All Annual instance types must also have an Hourly instance type defined. AWS Marketplace doesn't offer Annual-only pricing or Hourly without Annual on the same product. For any product offering Annual pricing, Hourly pricing also needs to be specified. 
+ A \$10 Annual price is allowed on a specific instance type, if the Hourly price is also \$10 and there are other non-\$10 Annual instance types defined. 
+ At the end of the annual subscription period, the customer will start being charged at the hourly price. 
+ If a customer buys X Annual subscriptions but is running Y software on Y instances, then the customer is charged at Hourly software price for (Y-X) instances which are not covered by Annual subscriptions. As such, an Hourly rate must be included for all Annual pricing instance types. 
+ Using seller private offers, you can offer a multi-year (up to 3 years) or custom duration AMI with upfront payment, or a flexible payment schedule. For more information about multi-year and custom duration contracts, see [Preparing a private offer for your AWS Marketplace product](private-offers-overview.md) and [Private offer installment plans](installment-plans.md).

If you offer an Annual product in AWS Marketplace, you agree to the specific refund policies for Annual products, located in the **File Uploader** documents section in the [AWS Marketplace Management Portal](https://aws.amazon.com/marketplace/management/tour). 

# Price change
<a name="price-change"></a>

You can change annual prices (the \$1 value, for example \$11,000/year to \$11,200/year) every 90 days. However, you must give 90 days' notice to existing customers of annual pricing. The new price will apply to new subscriptions but will have no impact on existing subscriptions.

**Note**  
During the 90 day notice period, you can't update the supported instance type.



Price changes will be effective for auto-renewals only if the price was changed at least 90 days before the auto-renewal date. The customer will receive an email message prior to auto-renewal that includes the new price.

# End user license agreement
<a name="end-user-license-agreement"></a>

An AWS customer’s usage of software for 12 months under an annual subscription is covered by the EULA that you provide on your product’s details page on AWS Marketplace.