This article will cover the following things:
What a plan is and how it works
Creating a plan in Firmhouse
Configuring the payment settings
What is a plan?
A plan is the thing your customers will subscribe to. It includes an amount that will get charged monthly. Plans can be used to sell something virtual (like a membership) or something physical (one or multiple products) - however you want to use it is up to your business case.
If you are selling a physical product, think of it like a bundle: It can include one or many products (it can also include the same product multiple times). Once someone subscribes to that plan, all the products within that plan will be shipped to the customer (based on the logistics setup). The amount specified in the plan will get charged per month.
If you aren't selling physical products, then a plan simply determines how much money a customer gets charged every month.
Now let's have a look how to create a plan and allow people to subscribe to it!
Step 1: Create a plan
In the left sidebar, you will find a link called "Plans". If you are not seeing this, make sure:
Your role is set to Project Manager or higher
Your project is Plan based (get in touch with Firmhouse if you think your project is not plan based)
This is where all your plans live. Click on "New plan" to get started. Follow the steps and set up your plan. If you want to include physical products in your plan, you will be asked to set these up first.
Details
This first section covers the basics of your plan, like name, description, picture, etc.
Pricing
In the second section, you are asked to configure the pricing rules of your plan.
A note on the initial amount value
The initial amount is charged on signup and it is mandatory. If you want, you can use this as the payment for the first month. Normally, this has to be the same as the monthly amount if you want to use it as payment for the first month.
A note on using the initial payment for multiple billing cycles
You might want to ask for a larger upfront payment upon signup, which covers multiple billing cycles, e.g. billing the first 3 months upfront and starting monthly billing only from the 4th month onwards.
This can be configured using the "Use initial payment for first billing cycles" setting.
Contract terms
The last set of settings on the Plan creation page is related to Contract terms. Here, you can configure maximum and minimum commitment periods, as well as a grace cancellation period.
Step 2: Configure Payment Settings
If you used the initial amount value in your plan pricing settings as the first charge, you might want to configure the Moment of the first charge in your Subscription model. Its value is normally set to 1 to ensure your payment service provider starts charging your customers after the first month instead of the next day.