Addons are an effective way of selling additional products/services to your customers and boost your sales revenue.
For example, if you are selling a software tool for businesses in three different plans - Enterprise, Professional and Basic. In addition to the set of features that come with each plan, you might have a reporting module that you'd like to offer to users at an additional cost. You can create an addon for the Reports module in your Chargebee site and there are two options:
- You can keep it open for users to subscribe to.
- You can make it mandatory for certain plans.
Addons can be included in a Subscription while
Before you start creating addons in your Chargebee site, ensure that you have added all the necessary billing frequencies under Essential Settings.
Creating an Addon
To create a new addon in your Chargebee site, follow these steps:
- Click Product Catalog > Addons > + Create Addon.
- In the Create a New Addon page, if you have enabled and created product families in your Chargebee site, click the Product Family dropdown and select the product family to which you want to associate this addon with.
- Specify an Internal Name for the addon that helps you identify the addon internally. It is the name used to refer to the addon on your Chargebee site.
- You can add a Description to include additional details about the addon.
- The Addon ID is generated based on the Internal Name that you specify. You can modify this id as required. An Addon ID is the unique identifier of the addon and when a Subscription is created or updated via the API from your application or website, the ID should be used to refer to the addon.
- The Unit of Measure denotes the unit of the addon. For example, when you are offering the reports module as an addon, you can define the price of the addon per user access. So the unit of measure is user, and the price of the addon can be $30/user.
- Under Customer-Facing Info, enable the Display in Self-Serve Portal checkbox to make this addon available in the self-serve portal.
can be used by your customers to make changes to their subscription.
- Click Create.
Defining Price Points for an Addon
After creating addons, you can start adding multiple price points for each addon.
Using price points you can:
- Create variations of the same addon for different currency and billing frequency combinations.
- Avoid creating or cloning the same addon for multiple currencies and billing frequencies, create price points instead.
- Maintain a clean and sleek product catalog and avoid clutter.
To define a price point for an addon, follow these steps:
- Click Product Catalog > Addons. Select the addon for which you are creating price points.
- In the details page, the Pricing section displays all the billing frequencies that you have added for your site for every currency configured.
- Go to the billing frequency for the currency that you want to add for this addon, and click Set Price.
- In the Create a Price Point page, you can modify the basic attributes of the addon's price point such as:
- External Name: Specify an external name to this price point used on all customer facing resources such as Invoice, Quotes, Checkout and Self-serve Portal.
- Internal Name: The internal name is used to refer to the addon price point on your Chargebee site.
- Addon Price Point ID: The Addon Price Point ID is generated based on the Internal Name that you specify. You can click and edit this field.
This ID is the unique identifier of the addon price point and when a subscription is created or updated via the API from your application or website, the ID should be used to refer to the addon price point.
- In the Pricing section, you can configure the pricing attributes of the addon's price point such as:
- Pricing Model: Choose your preferred pricing model to charge your customers for consuming this addon.
- Price: Based on the pricing model that you select, you can specify the price for the addon's price point.
- Billing Cycles: Define the number of billing cycles that determines the default number of times the subscription is renewed automatically. You can select from one of the following options:
- Fixed number of billings cycles and specify the number. The number you enter should be inclusive of the first billing cycle.
- Forever to allow the subscription renewal to happen forever.
- Shipping preferences: This option allows you to configure whether the addon is a physical item that can be shipped. If so, you can mention how often an item is shipped in a single billing period of the addon price point. Shipping preferences must be enabled using the Enable shipping fields checkbox under Settings > Configure Chargebee > Billing rules.
- Under Customer facing info, do the following:
- Add a description to the price point which gets displayed on all customer facing resources such as Invoice, Quotes, Checkout, and Self-serve Portal.
- Additionally specify Invoice notes that will appear in all the invoice pdfs that are generated for this addon's price point.
- Accounting Information: The Accounting Information section helps Chargebee sync up with any accounting applications that you integrate with, like Xero and QuickBooks. Each of the accounting fields captures information that helps track product-specific sales and revenue from an accounting perspective.
- SKU: Store Keeping Unit or SKU is a name used to identify a product or service in inventory management or accounting systems. You can use this as an alternative name for your addon and it will be used as the Product Name in the accounting system.
- Accounting code: This field captures your Accounting systems' General Ledger Account code/name. When product information is synced to the Accounting system, the product-specific information will be synced with this account as captured here. This is a mandatory field. You cannot proceed with accounting integration if this field is left blank.
- Accounting category: The Accounting Category captures product specific additional metadata or categorization for reporting purpose in the accounting systems (such as regions you are selling to or branches you are selling from). It should be entered in a specific format: E.g. Region: Northern.
- Taxes: If Taxes have been configured, you can choose to exempt an addon price point from taxes by unchecking This addon price point is subject to taxes. If you are choosing to keep the addon taxable, choose a tax profile for it. This would determine — during invoicing — what taxes are applied to the price of the addon.
- Click Create.
You can define multiple price points for each addon, for all the currencies and billing frequencies in which you want to offer your addons.
The price of the addon is set according to the pricing model chosen for the addon. The pricing model can be one of the following:
Flat fee: This is for addons that have a fixed recurring charge. There is no quantity associated with such addons.
Per Unit: You may choose to sell services that are billed based on quantity signed-up for. For instance, you may be offering a support service for $15 per user per month. The quantity here would be the number of users. The customer can specify the addon quantity during sign-up through the hosted pages or – if you are using API – then you may use the Create Subscription API call .
Tiered: In tiered pricing also, the per unit prices are assigned to quantity-based ranges (tiers). When calculating the total price, quantities are purchased from successive tiers, starting from the lowest.
Volume: Here too, the price is quantity-based. However, the per unit price is dependent on the range within which the total quantity falls. So under this model, you would define the quantity ranges and the per unit price for each.
Stairstep: Stairstep pricing also defines quantity tiers against which prices are defined, but for each tier, a flat price is assigned instead of a per unit price.
This action allows you to change the addon configuration. The Addon ID for an addon cannot be changed once the addon has been created.
- An addon can only be deleted when it has no price points defined for it. Even if the price points linked to an addon are archived, the addon can not be deleted.
- Once deleted, the addon is completely removed from Chargebee and it does not appear on the list of addons.
- Once an addon is deleted, its name and ID can be reused.
Addon Price Point Actions
Edit Price Point
This action allows you to change the price point configuration. The Addon Price Point Id and the Pricing Model for a price point cannot be changed once the price point has been defined.
Editing a price point differs based on whether subscriptions are created for the price point or not.
- If there are no subscriptions attached to the addon price point, then every attribute (except Addon Id) can be changed.
- If subscriptions are attached to the addon price point, then everything except the following can be changed:
- Addon Id
- No. of billing cycles
- Shipping preference (only if order(s) has(have) been created for the plan)
When a price point has subscriptions attached to it, the price can be changed (though only when the pricing model is flat or per unit).
To change the price of a price point, follow these steps:
- Click Product Catalog > Addons, select the Addon and the Price Point.
- Click Edit Price.
- Enter the new price of the addon under the Pricing section.
- Click Update.
The new price is applied to all new subscriptions to the addon. Existing subscriptions are not affected and continue to be renewed at the old price.
Can recurring addons be added to a subscription in the middle of its term?
Yes, this can be done by choosing Change Subscription under the list of actions available on the subscription details page. If proration is enabled, the charge for the addon is prorated for the remaining term of the subscription. If disabled, then the addon is charged for from the next renewal.
Can I control how many times an addon renews with the subscription?
Yes, for this, enable billing cycle for addons.
If you do have a usage-based or metered billing subscription model, then you can create non recurring quantity based addons to apply metered charges as addons. Learn more about metered billing.
Can I have trial periods for addons too?
Yes, enable addon trials for this.
How is a one-time charge different from a non-recurring addon?
A non-recurring addon is a product or service that has been modeled into Chargebee that does not renew with the subscription though it is linked to it. A one-time charge is an ad-hoc charge against a customer and is not linked to any particular subscription. More information about these two ways of charging is presented here.
I have a usage-based subscription model, how do I handle that in Chargebee?
Use Chargebee's metered billing feature to use non-recurring addons to apply usage charges.
Can I see how, say, an addon/plan with tiered pricing looks like on Chargebee Checkout and Self-serve Portal?
Yes, see this FAQ.