We're using cost proration, it basically means that you're paying for the time you spent on each plan during the billing cycle. Note that all the invoices are always billed at the start of the billing cycles so when you upgrade you're never billed right away.
Below are a few examples to demonstrate how exactly it works.
You purchased plan $99 on August 15th, you were charged $99 for the August 15 - September 15 billing cycle. Plan $99 has $10k ad spend limit. In the middle of the billing period you decided to upgrade to the plan $199. As mentioned above you will not be charged anything right away, instead the next invoice amount will be increased by the difference between what you've already paid and what you owe for the bigger plan. The math here is pretty simple: you used plan $99 for half a month and for another half you were on the $199 plan, so the total cost for the August 15 - September 15 period should be the sum of the halves of these plans.
99/2 + 199/2 = $149 - this is how much this particular billing period will cost.
But you have already paid $99 for this billing cycle, which means the next invoice amount will be increased by (149 - 99) = $50. On September 15th you're billed the $50 on top of the fee for the next billing cycle (September 15 - October 15). Given that on September 15th you're still on the 199 plan it means you'll be billed for the 199 plan, so the total invoice amount will be (199 + 50) = $249.
Now let's say that you didn't want to get billed for the 199 plan, you simply forgot to downgrade beforehand. Check out the next example to find out why it's actually not a problem.
Being on the plan $199 you paid $249 for the September 15 - October 15 period, $50 debt for the previous billing cycle and $199 for the next one. But you know that you don't need the $25k spend limit, $10k would be enough. So you simply downgrade back to the 99 plan straight away. Here is how it'll affect the next invoice amount given that you stay on the 99 plan till October 15th.
Essentially you'll spend the entire month on the 99 plan and that'll be the cost for this month effectively. Which means you overpaid $100 but the thing is that the payment system doesn't just forget about it, it credits $100 to your Revealbot balance and the money doesn't go to waste. The positive balance will reduce the next invoice.
So in this example if you keep the $99 plan for the rest of the billing cycle, on October 15th you're not going to be charged anything because $100 covers the fee of the new billing cycle.
Therefore the best way to save the money is to upgrade and downgrade the plan in a timely fashion so you're never using expensive plans when it's actually not necessary.
Example 3: Upgrade from yearly plan $99 to yearly plan $199
Some users prefer paying for the whole year in advance, that's where the yearly plans come into play. The yearly plans have the same spend limit for the month but the billing cycle is a year.
Let's say you bought the yearly plan $99 on January 1st 2020. Both monthly and yearly plans at the $99 tier have the same spend limit of $10k per month. Midway through the year you realised that you need a bigger plan because you started spending more than $10k per month. So on July 1st you upgraded to the yearly plan $199. Same as with the monthly plans, you're not charged when you upgrade, you're charged when the next billing cycle starts, which is going to be on January 1st 2021 in this example. Take a look below to learn how much you'll be billed at the start of 2021 given that you stay on the plan $199 for the rest of 2020.
For the next year from Jan 2021 to Jan 2022 it's going to be $1990 as we multiply the $199 plan's monthly fee by 10. When you go with yearly plans, 2 months out of 12 come for free.
Plus there is the additional cost of the upgrade you made.
Half a year on the yearly plan $199 costs $1990 divided by 2, which is $995.
Half a year on the yearly plan $99 costs $990 divided by 2, which is $495.
Thus the additional cost is the difference between what you've already paid for the second half of the year ($495) and the second half's actual cost due to the upgrade ($995). The difference is $500.
So the total amount that will be billed on January 1st 2021 is going to be $1990 + $500 = $2490.
Basically it works pretty much the same as monthly upgrades and downgrades with the exception of the billing cycle being a year instead of a month. If it seems too complicated feel free to ask us for more details!