Subscription Guide

Overview

This guide helps merchants understand how to effectively use Moneybag's subscription feature to build recurring revenue streams for their business.

What are Subscriptions?

Subscriptions allow you to automatically charge your customers on a recurring basis for your products or services. Instead of manually creating invoices every month, the system handles everything automatically - from invoice generation to payment collection.

Example Use Cases:

• Monthly software access fees
• Weekly meal delivery services
• Annual membership fees
• Quarterly maintenance packages
• Daily content subscriptions

Traditional vs Subscription Revenue Model

Revenue Comparison Chart:

Assumes zero churn for simplicity. Real results depend on retention.

Benefits for Your Business

Predictable Revenue

• Know exactly how much money you'll receive each billing cycle
• Build a stable, recurring revenue stream
• Better cash flow planning and forecasting

Time Savings

• No manual invoice creation every month
• Automatic payment collection
• System handles retry logic for failed payments
• Automated email notifications to customers

Customer Convenience

• Customers pay automatically - no need to remember
• Flexible trial periods to reduce purchase friction
• Easy subscription management (pause/resume)

Business Growth

• Focus on acquiring customers, not chasing payments
• Scale subscription business without additional overhead
• Detailed billing history for analytics

Real-World Use Cases

This section provides detailed examples of how different businesses can leverage the subscription feature to grow their revenue and improve customer experience.

SaaS & Software Companies

Business Type: Cloud-based accounting software for small businesses

Challenge:

• Manual invoicing for monthly licenses wastes 10+ hours per month
• Customers forget to pay, causing service interruptions
• Difficult to predict monthly revenue

Subscription Solution:

Plan Setup:

• Starter Plan: 1,500 BDT/month (up to 5 users)
• Business Plan: 3,500 BDT/month (up to 20 users)
• Enterprise Plan: 8,000 BDT/month (unlimited users)
• All plans: 14-day free trial

Configuration:

Plan: Starter Monthly
Amount: 1500 BDT
Interval: MONTH
Interval Count: 1
Trial: 14 days free

Results:

• 90% of trial users convert to paid
• Zero time spent on monthly invoicing
• Predictable monthly recurring revenue
• Customers never experience service interruption due to forgotten payments

Pro Tip: Offer annual plans at 10,000 BDT (save 8,000 BDT) to improve cash flow and reduce churn.

Fitness & Wellness Centers

Business Type: Gym and fitness center with 500+ members

Challenge:

• Members forget to pay monthly fees
• Staff wastes time chasing payments
• High cancellation during summer months
• Difficult to manage different membership tiers

Subscription Solution:

Plan Setup:

• Basic Gym: 2,000 BDT/month (gym access only)
• Premium: 3,500 BDT/month (gym + group classes)
• Elite: 5,000 BDT/month (gym + classes + personal trainer)
• Annual Membership: 20,000 BDT/year (save 4,000 BDT)

Special Features:

• 7-day paid trial (500 BDT) - covers day passes
• Pause feature for summer vacation (retain members)
• Family plan: Custom pricing per family

Configuration:

Plan: Premium Gym Membership
Amount: 3500 BDT
Interval: MONTH
Interval Count: 1
Trial: 7 days for 500 BDT

Results:

• 40% reduction in payment collection time
• 25% increase in annual memberships (better cash flow)
• 15% fewer cancellations (pause feature helps retain members)
• Members appreciate automatic payments

Seasonal Strategy:

• Promote annual plans in January (New Year resolutions)
• Offer pause feature during Ramadan and summer
• Send trial-ending reminders to convert more customers

Food & Meal Delivery Services

Business Type: Healthy meal prep and delivery service

Challenge:

• Weekly order management is complex
• Customers want convenience of auto-delivery
• Need to manage different dietary preferences
• Weekly invoicing creates overhead

Subscription Solution:

Plan Setup:

• 5-Day Meal Plan: 2,500 BDT/week (lunch + dinner, Mon-Fri)
• 7-Day Meal Plan: 3,500 BDT/week (all meals, daily)
• Keto Special: 4,000 BDT/week (specialized diet)
• Monthly Bundle: 12,000 BDT/month (weekly delivery, save 2,000 BDT)

Configuration:

Plan: 5-Day Weekly Meal Plan
Amount: 2500 BDT
Interval: WEEK
Interval Count: 1
Trial: First week for 1500 BDT (40% off)

Results:

• Customers love "set it and forget it" convenience
• Predictable ingredient ordering (reduced waste)
• 80% trial conversion rate
• Average customer lifetime: 6 months (vs 2 months for one-time orders)

Business Insight:

• Weekly billing ensures fresh commitment
• Paid trial covers food costs while demonstrating quality
• Pause feature for vacations keeps customers instead of losing them

Educational & Training Services

Business Type: Online language learning platform (English courses)

Challenge:

• Students need ongoing access to learning materials
• One-time fees don't encourage continued learning
• Difficult to predict revenue for teacher salaries

Subscription Solution:

Plan Setup:

• Self-Study: 800 BDT/month (video lessons only)
• Standard: 1,500 BDT/month (lessons + live group sessions)
• Premium: 2,500 BDT/month (lessons + 1-on-1 tutoring)
• Annual Discount: 15,000 BDT/year for Premium (save 5,000 BDT)

Configuration:

Plan: Standard Learning Package
Amount: 1500 BDT
Interval: MONTH
Interval Count: 1
Trial: 30 days free trial

Results:

• Longer student engagement (5 months average vs 1 month)
• Better learning outcomes (continuous access)
• Predictable revenue for hiring qualified teachers
• 60% of free trial users convert to paid

Educational Strategy:

• 30-day trial allows students to see progress
• Monthly commitment encourages consistent learning
• Annual plans help serious learners save money
• Graduated pricing tiers accommodate different budgets

Professional Services & Consulting

Business Type: IT support and maintenance for small businesses

Challenge:

• Clients need ongoing support but don't want hourly billing
• Unpredictable revenue makes hiring difficult
• Clients forget to renew annual contracts

Subscription Solution:

Plan Setup:

• Basic Support: 5,000 BDT/month (email support, 5 hours/month)
• Business Support: 10,000 BDT/month (phone + email, 15 hours/month)
• Premium Support: 20,000 BDT/month (24/7 support, 40 hours/month)
• Annual Plans: 15% discount

Configuration:

Plan: Business IT Support
Amount: 10000 BDT
Interval: MONTH
Interval Count: 1
Trial: First month for 5000 BDT

Results:

• Clients prefer predictable monthly costs vs hourly billing
• 90% retention rate (vs 60% with annual contracts)
• Revenue predictability allows hiring more technicians
• Automatic renewals eliminate contract negotiation time

B2B Strategy:

• No free trial (paid trial covers onboarding costs)
• Quarterly billing option (30,000 BDT every 3 months)
• Custom enterprise subscriptions for larger clients
• Build long-term relationships vs one-off projects

Content & Media Publishers

Business Type: Online news portal and magazine

Challenge:

• Ad revenue declining
• Need sustainable revenue from readers
• Want to reward loyal readers

Subscription Solution:

Plan Setup:

• Basic: 200 BDT/month (remove ads, 10 premium articles/month)
• Premium: 500 BDT/month (unlimited access, exclusive content)
• Annual Premium: 5,000 BDT/year (save 1,000 BDT)

Configuration:

Plan: Premium Reader
Amount: 500 BDT
Interval: MONTH
Interval Count: 1
Trial: 7 days free trial

Results:

• 5,000 paying subscribers in 6 months
• 2,500,000 BDT monthly recurring revenue
• More investment in quality journalism
• Reader engagement increased 3x

Content Strategy:

• Short trial (7 days) to show content quality
• Annual subscribers get bonus content
• Pause feature for financial hardship (keeps subscribers)
• Family plans for multiple readers

Utility & Maintenance Services

Business Type: AC servicing and maintenance company

Challenge:

• Customers only call when AC breaks (emergency pricing)
• Seasonal revenue (high in summer, low in winter)
• Want to build year-round relationships

Subscription Solution:

Plan Setup:

• Preventive Care: 1,500 BDT/quarter (quarterly AC servicing)
• Premium Care: 6,000 BDT/year (4 services + priority emergency support)
• Commercial Plan: Custom pricing for businesses

Configuration:

Plan: Quarterly AC Care
Amount: 1500 BDT
Interval: MONTH
Interval Count: 3
Trial: None (no trial for service plans)

Results:

• Year-round revenue stream (vs seasonal spikes)
• ACs last longer with preventive maintenance (happy customers)
• Technicians have steady work in off-season
• 30% higher lifetime customer value

Service Strategy:

• Quarterly billing matches recommended service frequency
• No trial (immediate service provided)
• Emergency call discounts for subscribers
• Commercial subscriptions for offices (higher value)

E-commerce & Subscription Boxes

Business Type: Monthly beauty product subscription box

Challenge:

• Customer acquisition cost is high
• Need recurring revenue to scale
• Want to surprise and delight customers monthly

Subscription Solution:

Plan Setup:

• Basic Box: 1,200 BDT/month (3 products)
• Deluxe Box: 2,000 BDT/month (5 products + exclusive items)
• 3-Month Plan: 5,400 BDT (save 600 BDT, prepaid)
• 6-Month Plan: 10,200 BDT (save 1,800 BDT, prepaid)

Configuration:

Plan: Monthly Deluxe Beauty Box
Amount: 2000 BDT
Interval: MONTH
Interval Count: 1
Trial: First box for 1000 BDT

Results:

• 70% retention after 3 months
• Average customer lifetime: 8 months
• Predictable inventory planning
• Higher customer lifetime value vs one-time sales

Subscription Box Strategy:

• Paid trial at 50% off (covers product cost)
• Prepaid multi-month plans improve cash flow
• Personalization keeps customers engaged
• Surprise factor encourages social media sharing

Industry-Specific Configuration Guide

Getting Started with Subscriptions

There are two ways to set up subscriptions:

Option 1: Using Subscription Plans (Recommended)

1. Create reusable subscription plan templates
2. Subscribe customers to these plans
3. All customers on the same plan share the same pricing and billing schedule

Best For: Standardized offerings (e.g., Basic, Premium, Enterprise tiers)

Option 2: Custom Subscriptions

1. Create individual subscriptions for each customer
2. Set custom pricing and billing schedules per customer
3. No plan template required

Best For: Customized deals, special pricing, or one-off arrangements

Customer Journey Map

Plan Setup Decision Tree

Creating Subscription Plans

What is a Subscription Plan?

A subscription plan is a template that defines:

• Pricing: How much to charge
• Billing Frequency: How often to charge (daily, weekly, monthly, yearly)
• Trial Period: Optional free or paid trial
• Description: What the customer gets

Plan Configuration

1. Basic Information

• Plan Name: e.g., "Premium Monthly", "Annual Gold Package"
• Description: What's included in this plan
• Currency: Default is BDT

2. Pricing

• Amount: Subscription price per billing cycle
• Example: 500 BDT for monthly plan = customer pays 500 BDT every month

3. Billing Interval

Choose how often to bill your customer:

You can set the interval count (1-365) to customize frequency:

• Interval: MONTH, Count: 1 = Monthly
• Interval: MONTH, Count: 3 = Quarterly
• Interval: WEEK, Count: 2 = Bi-weekly

4. Trial Period (Optional)

Offer a trial to attract customers:

• Free Trial: Set trial days (e.g., 14 days), leave trial amount empty

  • Customer pays nothing for first 14 days
  • After trial, normal billing begins

• Paid Trial: Set trial days and trial amount

  • Example: 7-day trial for 50 BDT
  • After trial, charge full amount

• No Trial: Leave trial fields empty

  • Customer is billed immediately

Example Plans

Example 1: Monthly Gym Membership

Plan Name: Gold Gym Membership
Amount: 2000 BDT
Interval: MONTH
Interval Count: 1
Trial: 7 days free trial
→ Customer gets 7 days free, then pays 2000 BDT every month

Example 2: Quarterly Maintenance Package

Plan Name: AC Maintenance Package
Amount: 3000 BDT
Interval: MONTH
Interval Count: 3
Trial: None
→ Customer pays 3000 BDT every 3 months

Example 3: Weekly Meal Delivery

Plan Name: Weekly Meal Box
Amount: 800 BDT
Interval: WEEK
Interval Count: 1
Trial: 1 week for 300 BDT
→ Customer pays 300 BDT for first week, then 800 BDT every week

Managing Your Plans

• View All Plans: See all your active and inactive plans
• Edit Plans: Update pricing, description, or trial terms
• Deactivate Plans: Archive plans you no longer offer (existing subscriptions continue)
• Reactivate Plans: Bring archived plans back

Managing Customer Subscriptions

Creating a Subscription

Method 1: From a Plan

1. Select a customer
2. Choose an existing plan
3. Optionally customize pricing for this customer
4. Customer is subscribed

Method 2: Custom Subscription

1. Select a customer
2. Set custom amount and billing interval
3. No plan needed
4. Customer is subscribed

What Happens When You Create a Subscription?

With Trial Period:

1. Subscription starts in "TRIALING" status
2. Customer receives notification
3. No payment collected during trial
4. When trial ends:
   • Invoice is automatically created
   • Payment is collected
   • Status changes to "ACTIVE"

Without Trial Period:

1. Subscription starts in "ACTIVE" status
2. Invoice is created immediately
3. Payment is collected
4. Customer receives invoice email with payment link

Viewing Subscriptions

• List All Subscriptions: See all customer subscriptions
• Filter by Status: Active, Trialing, Past Due, etc.
• Filter by Customer: View one customer's subscriptions
• Search: Find specific subscriptions

Understanding Billing Cycles

How Automatic Billing Works

1. System Checks Hourly:

   • Looks for subscriptions due for billing
   • Processes up to 100 subscriptions per run

2. Invoice Creation:

   • System creates invoice automatically
   • Invoice includes:
     • Subscription details
     • Billing period (e.g., Jan 1 - Jan 31)
     • Amount due
     • Payment link

3. Customer Notification:

   • Email sent automatically with invoice
   • Customer clicks payment link
   • Pays using any supported method (bKash, Nagad, cards, etc.)

4. Payment Success:

   • Subscription status updated to ACTIVE
   • Next billing date calculated
   • Billing cycle counter incremented
   • You receive webhook notification

5. Next Cycle:

   • Process repeats automatically every billing interval
   • No manual work required

Billing Period Tracking

Each subscription tracks:

• Current Period Start: When current billing cycle began
• Current Period End: When current billing cycle ends
• Next Billing Date: When next invoice will be created
• Billing Cycle Count: How many successful payments collected

Example: Monthly subscription starting Jan 15

• Current Period: Jan 15 - Feb 15
• Next Billing Date: Feb 15
• Cycle Count: 1 (after first payment)

Automatic Billing Flow

Billing Cycle Timeline

Trial Periods

Why Offer Trials?

• Reduce Risk: Customers try before committing
• Increase Conversions: Lower barrier to sign up
• Build Trust: Demonstrate value first

Trial Options

1. Free Trial

• Customer pays nothing during trial
• Perfect for: Digital services, software, memberships
• Conversion strategy: Provide full value upfront

Example: 14-day free trial of premium features

2. Paid Trial

• Customer pays reduced amount during trial
• Perfect for: Physical products, deliveries
• Conversion strategy: Cover basic costs, show value

Example: First week meal box for 50% off

3. No Trial

• Customer pays full price immediately
• Perfect for: Established businesses, urgent needs
• Use when: Brand trust is already high

Trial End Notifications

3 Days Before Trial Ends:

• System sends webhook notification
• You can send reminder email to customer
• Prepare customer for first payment

Trial Conversion Funnel

Optimization Tips:

• Improve trial sign-up rate → Better landing page
• Improve activation → Better onboarding emails
• Improve conversion → Trial ending reminders
• Improve retention → Better product value

Trial Types Comparison

Subscription Lifecycle

Subscription Statuses

Subscription Lifecycle Flowchart

Status Distribution (Healthy Business Example)

What This Shows:

• 70% Active (healthy!)
• 10% Pending (new subscriptions awaiting payment)
• 12% Trialing (good conversion pipeline)
• 5% Past Due (acceptable, will recover or churn)
• 2% Paused (seasonal or temporary)
• 1% Cancelled/Expired (normal churn)

Warning Signs:

• More than 10% PAST_DUE → Payment issues
• More than 5% PAUSED → Product/service issues
• More than 10% CANCELLED → High churn, investigate!
• More than 20% PENDING → Payment conversion issues

Managing Subscription Status

Pause a Subscription

When to use:

• Customer requests temporary hold
• Seasonal pause (e.g., summer vacation)
• Financial hardship

What happens:

• No new invoices created
• Customer retains access until current period ends
• Can resume anytime

Example: Customer pauses gym membership during travel

Resume a Subscription

When to use:

• Customer ready to restart paused subscription

What happens:

• Status changes to ACTIVE
• Next billing date recalculated
• Normal billing resumes

Cancel a Subscription

Two Options:

1. Cancel at Period End (Recommended)

• Customer keeps access until current period ends
• No refund needed
• Subscription changes to EXPIRED after period ends
• Fair to both parties

Example: Customer cancels on Jan 20 but paid for Jan 1-31

• Service continues until Jan 31
• No charges on Feb 1

2. Cancel Immediately

• Subscription cancelled right away
• May require manual refund
• Customer loses access immediately

Cancellation Reasons

Always track why customers cancel:

• Too expensive
• Not using service
• Found competitor
• Technical issues
• Temporary need

Use this data to:

• Improve your offering
• Identify pricing issues
• Reduce churn

Billing History & Reporting

What is Billing History?

Every time the system attempts to charge a subscription, it creates a billing record. This gives you complete audit trail.

What's Tracked

For each billing attempt:

• Date & Time: When billing occurred
• Amount: How much was charged
• Status: SUCCESS, FAILED, PENDING, PROCESSING, REFUNDED
• Invoice: Link to invoice created
• Payment Details: Transaction ID, payment session
• Failure Reason: Why payment failed (if applicable)
• Retry Information: When next retry scheduled

Using Billing History

For Customer Service:

• Answer "Why was I charged?" questions
• Show proof of payment
• Identify billing issues

For Business Analytics:

• Track revenue by subscription
• Calculate churn rate
• Identify payment failure patterns
• Forecast monthly recurring revenue (MRR)

For Accounting:

• Reconcile payments
• Generate financial reports
• Audit trail for compliance

Handling Failed Payments

Why Payments Fail

Common reasons:

• Insufficient balance
• Expired payment method
• Card/account blocked
• Technical issues with payment gateway
• Customer intentionally declined

Automatic Retry Logic

When payment fails, system automatically retries:

Failed Payment Retry Flow

Retry Timeline

Status Changes

After 1st Failed Attempt:

• Status changes to PAST_DUE
• Failed payment counter increases
• Customer notified
• 1st retry scheduled

After 3 Failed Retries:

• Subscription stays PAST_DUE
• No more automatic retries
• Customer must update payment method

After 7 Days Past Due:

• System automatically cancels subscription
• Customer notified
• Subscription moves to CANCELLED

What You Should Do

Immediately:

1. System sends you webhook notification
2. Review customer account
3. Contact customer if valuable subscription

Within 24 Hours:

1. Send friendly reminder email
2. Offer help updating payment method
3. Check if it's a temporary issue

Before Auto-Cancel (7 Days):

1. Final outreach to customer
2. Offer payment plan if needed
3. Ask for feedback

Best Practices for Reducing Failed Payments

1. Remind Before Billing:

   • Email 3 days before billing
   • Give customer time to ensure sufficient balance

2. Multiple Payment Methods:

   • Let customers save backup payment method
   • Automatically try backup if primary fails

3. Clear Communication:

   • Explain billing schedule clearly
   • Show next billing date prominently

4. Grace Period:

   • Consider allowing access during retry period
   • Shows goodwill and reduces churn

Best Practices

Pricing Strategy

1. Keep it Simple

• Offer 2-3 clear plan tiers (e.g., Basic, Premium, Enterprise)
• Make pricing differences obvious
• Clearly state what's included

2. Annual Discounts

• Offer 15-20% discount for annual payment
• Improves cash flow
• Reduces churn

Example:

• Monthly: 1000 BDT/month
• Annual: 10,000 BDT/year (save 2000 BDT)

3. Trial Length

• 7 days: Physical products, test commitment
• 14 days: Software, show features
• 30 days: High-value services, build trust

Tiered Pricing Strategy

Monthly vs Annual Revenue Impact

Annual Benefits:

• Monthly: 100 customers × 1,000 BDT = 100,000 BDT/month = 1,200,000 BDT/year
• Annual: 100 customers × 10,000 BDT = 1,000,000 BDT upfront!
  • Cash flow boost in month 1
  • Guaranteed revenue for 12 months
  • Lower churn (committed for full year)

Customer Communication

At Sign-Up:

• Welcome email with what to expect
• Clear explanation of billing schedule
• How to manage subscription

Before Each Billing:

• Reminder 3 days before
• Amount that will be charged
• How to update payment method

After Successful Payment:

• Thank you message
• Receipt/invoice
• Service continues confirmation

If Payment Fails:

• Friendly notification (not threatening)
• Easy instructions to fix
• Support contact information

At Cancellation:

• Confirm cancellation
• Last day of service
• Offer to return (win-back email)

Managing Churn

Early Warning Signs:

• Failed payments
• Decreased usage
• Support complaints

Retention Strategies:

• Contact at-risk customers proactively
• Offer plan downgrade instead of cancel
• Provide pause option for temporary issues
• Exit survey to understand why

Win-Back Campaigns:

• Email cancelled customers after 30-60 days
• Offer special "come back" discount
• Address their original cancellation reason

Churn Prevention Flow

Churn Rate Impact on Revenue

Churn Calculation:

• Monthly Churn Rate = (Cancelled this month ÷ Total active start of month) × 100
• Example: 10 cancelled ÷ 200 active = 5% churn
• Target: Keep churn below 5% for healthy growth

Compliance & Transparency

Always:

• Clearly state auto-renewal terms at sign-up
• Provide easy cancellation process
• Send receipts for every charge
• Allow customers to export billing history
• Honor cancellation requests promptly

Never:

• Hide cancellation options
• Charge without notification
• Make cancellation difficult
• Continue charging after cancellation

Quick Reference

Common Scenarios Quick Guide

Common Scenarios

Scenario 1: Customer wants to upgrade

• Cancel current subscription (at period end)
• Create new subscription with higher plan
• Consider prorating refund

Scenario 2: Customer needs to pause for 2 months

• Use PAUSE feature
• Document pause reason
• Set reminder to check in when resuming

Scenario 3: Payment failed but customer is valuable

• Contact customer directly
• Offer manual payment option
• Help update payment method
• Consider extending grace period

Scenario 4: Customer wants yearly instead of monthly

• Cancel current monthly subscription
• Create new annual subscription
• Offer discount for switching

Scenario 5: Need to change pricing for existing customers

• Update subscription amount (not plan)
• Notify customer 30 days before change
• Grandfather loyal customers if possible

Subscription Metrics Dashboard (What to Track)

Key Metrics to Monitor:

Need Help?

Common Questions:

• Q: Can I refund a subscription payment?

• A: Yes, process refund through the billing history

• Q: What if customer disputes charge?

• A: Check billing history for proof of service

• Q: Can I offer mid-cycle plan changes?

• A: Best practice is to change at next billing cycle

• Q: How do I handle prorated charges?

• A: Calculate manually and create custom subscription amount

Support Resources:

• Subscription API Reference
• Webhook Integration Guide
• Troubleshooting Guide
• Contact Support