Question about Pricing

My app is very seasonal. Christmas is the biggest month.

Say my pricing is $5 per license. I sell up to 3000 licenses on Dec, I should be on the Plus plan for $49/month. Then from Jan through Nov, I sell 20 licenses a month on average, so 1) should I downgrade to the Solo plan for $11/month or 2) do I need to upgrade to the Premium plan for $149/month because the total number of licenses is over 3000?

Once you've reached 3000 activations , in order to make more product keys with activations you either need to delete product keys (not what you want to do if your customers are actually using them) or upgrade your account to the Premium plan.

You can upgrade at any time. So you can start on the Solo plan if you want, and then move up from there.

So in my case, I sell only 20 licenses in January, which means $5 x 20 = $100, but I have to pay $149 that month for those 20 licenses. Am I understanding the pricing structure correctly?

Yes. You might want to raise your prices. It's hard to sustain a business with such low prices.

It is an short ebook with animation. It is hard to charge for more than $5.

I guess I may need to look for another site.

Thanks for the answer.