Monthly plans are always postpaid: we invoice you at the end of each month.
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Yearly plans are prepaid: you pay up front for an entire year for the number of used seats mentioned. In return you get the flexibility to spread usage over a full year instead of month to month, particularly useful if you have high seasonal variation.
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If your usage goes above the number purchased during the prepaid year, we invoice the over-usage monthly in arrears, based on actuals.