Subscription Plans

A subscription plan is the product or service a subscriber buys on a recurring billing frequency. The billing frequency can change, depending on a customer's requirements. A subscription plan can represent a physical product, such as a personal care item, or a membership service, such as access to premium content. It can also represent a digital product, such as a streaming service or a software as a service offering.

A major benefit of the subscription plan model is stable and continuous revenue. This makes it easier for you to forecast sales and inventory. It also encourages customer retention and loyalty. You get to know your customers over a longer period of time, and you can grow your business with those customers.

note

A pricing option represents a plan's billing rules, such as billing frequency and length. See Offerings.

Characteristics of the Subscription Plan Model

Using the subscription plan model, you can:

• offer a trial period.

• set weekly, monthly, and yearly billing cycles.

• set different prices for the same plan.

• set separate pricing according to each:

  • plan
  • pricing option/billing cycle

Subscription Plan Example

The following steps describe how to model a subscription plan for razors.

1. Create an offering.

2. Add a plan for each product you want to sell:

   • Razors for men
   • Razors for women

3. Assign prices to these plans.

4. Add a pricing option for each billing frequency, for example:

   • 1 month
   • 2 months
   • 6 months