What Are Subscription Payments?
Subscriptions allow you to charge customers automatically at regular intervals (daily, weekly, monthly, or yearly). This creates predictable recurring revenue for your business.
Great For:
- Membership Sites: Exclusive content, community access, premium resources
- SaaS Products: Software tools, web applications, productivity apps
- Coaching & Consulting: Ongoing support, monthly calls, accountability groups
- Content Subscriptions: Newsletters, courses, video training libraries
- Services: SEO services, social media management, virtual assistance
Setting Up Subscription Deals
Step 1: Create a Subscription Deal
- Go to Dashboard → Create Deal
- Fill in your product details (title, description, images)
- In the pricing section, select "Recurring Subscription"
- Set your subscription price and billing interval
Step 2: Choose Billing Interval
Select how often customers are billed:
Daily
Charged every day. Uncommon but useful for short-term challenges or daily coaching.
Weekly
Charged every week. Good for intensive programs with weekly deliverables.
Monthly (Most Popular)
Charged once per month. The standard for most subscription businesses.
Yearly
Charged once per year. Often offered at a discount vs. monthly (e.g., 2 months free).
Step 3: Optional Free Trial
Reduce friction by offering a free trial period:
- Enable the "Free Trial" option
- Set trial duration (e.g., 7 days, 14 days, 30 days)
- Customer enters payment info but isn't charged until trial ends
- They can cancel anytime during the trial with no charge
Step 4: Configure Access & Delivery
Set up how subscribers access your content:
- Provide access links to your membership site or software
- Include login instructions in the delivery instructions
- Set up ESP integration to add subscribers to your email list
- Consider webhooks to integrate with external membership platforms
Subscription Management
Automatic Billing
Stripe automatically charges subscribers on their billing date. If a payment fails, Stripe retries according to your settings in the Stripe Dashboard.
Cancellations
Customers can cancel their subscription anytime from their profile. When canceled:
- They retain access until the end of the current billing period
- No refund is issued for the current period (standard practice)
- They won't be charged again
- You can manage cancellations in your Stripe Dashboard
Failed Payments
When a subscription payment fails (expired card, insufficient funds):
- Stripe sends the customer an email to update their payment method
- Stripe automatically retries the payment over several days
- You'll be notified of failed payments in your Stripe Dashboard
- If all retries fail, the subscription is canceled
Pausing Subscriptions
Stripe supports pausing subscriptions. Customers can request a pause through your support, and you can manage it in your Stripe Dashboard.
Pricing Strategies
Monthly vs. Annual
Offer both options to maximize revenue:
- Monthly: $29/month ($348/year total)
- Annual: $290/year (saves $58, equivalent to 2 months free)
Annual plans provide better cash flow and reduce churn. Offer a 15-20% discount to incentivize annual billing.
Tiered Pricing
Create multiple subscription levels (Basic, Pro, Premium) with different features and price points. Use separate deals for each tier.
Add-Ons & Upgrades
Use upsells in your sales funnel to offer premium add-ons or higher-tier subscriptions during checkout.
Revenue & Fees
Subscription payments follow the same fee structure as one-time payments:
Example: $50/month subscription
- Customer Pays:$50.00/month
- Stripe Processing:-$1.76 (2.9% + $0.30)
- Platform Fee:-$2.50 (5%) or -$1.95 (3.9% Premier)
- Your Earnings:$45.74 or $46.29/month
Annual Revenue: $548.88 or $555.48 per subscriber
Best Practices
- Clear Value Proposition: Make it obvious what subscribers get for their monthly fee
- Easy Cancellation: Don't hide the cancel button. Happy subscribers stay longer
- Regular Content: Deliver consistent value to reduce churn
- Engagement: Use email automation to keep subscribers engaged
- Win-Back Campaigns: Re-engage canceled subscribers with special offers
- Monitor Churn: Track why people cancel and address common issues