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AI Powered SaaS: Stripe + Auth + Billing + Deploy · Lesson

Subscription Management

Implement recurring billing logic using Stripe Subscriptions, including plan creation and customer subscription cycles.

Subscription Management is a free AI Powered SaaS: Stripe + Auth + Billing + Deploy lesson on CoddyKit — lesson 1 of 4. You can read the complete lesson below for free — then practise it hands-on in the browser with a built-in code editor and a 24/7 AI tutor. It is part of the AI Powered SaaS: Stripe + Auth + Billing + Deploy learning path, one of 4 lessons in the course, and your progress syncs across the web and the CoddyKit app.

Why Recurring Billing?

Welcome to subscription management! For many SaaS businesses, recurring revenue is crucial. It provides predictable income and helps foster long-term customer relationships.

Stripe Subscriptions make it easy to implement recurring billing without handling complex payment logic yourself, allowing you to focus on your product.

Products & Prices Revisited

Before creating a subscription, you need to define what customers are subscribing to. Stripe uses two key concepts that work together:

  • Products: These represent the service or good you offer (e.g., "Basic Plan", "Premium AI Access").
  • Prices: These define how much and how often you charge for a product (e.g., "$10/month", "$100/year").

A single product can have multiple prices, offering flexibility for different billing cycles or tiers.

Define Your SaaS Product

First, let's create a Stripe Product. This object represents your core service or plan, like a "Pro AI Plan" for your SaaS. You can create products via the Stripe Dashboard or programmatically.

Here's how to create a product using the Stripe Python API:

import stripe

stripe.api_key = "sk_test_YOUR_SECRET_KEY" # Use your actual test key

try:
    product = stripe.Product.create(
        name="Pro AI Plan",
        description="Access to advanced AI features and higher usage limits."
    )
    print(f"Product created: {product.id}")
    print(f"Name: {product.name}")
except stripe.error.StripeError as e:
    print(f"Error creating product: {e}")

Set Your Recurring Price

Once you have a Product, you define its Price. For subscriptions, this price must be recurring. You specify the currency, amount (in cents), and the billing interval (e.g., month, year).

Let's create a monthly recurring price for our "Pro AI Plan" (replace PRODUCT_ID with the ID from the previous step):

import stripe

stripe.api_key = "sk_test_YOUR_SECRET_KEY" # Use your actual test key
# IMPORTANT: Replace with an actual product ID from your Stripe account
# Example: 'prod_Nq7sN8sN8sN8sN'
PRODUCT_ID = "prod_YOUR_PRODUCT_ID" 

try:
    price = stripe.Price.create(
        unit_amount=2000, # $20.00 in cents
        currency="usd",
        recurring={"interval": "month"},
        product=PRODUCT_ID,
    )
    print(f"Price created: {price.id}")
    print(f"Amount: ${price.unit_amount / 100:.2f} / {price.recurring.interval}")
except stripe.error.StripeError as e:
    print(f"Error creating price: {e}")

Preparing Your Customer

Every subscription in Stripe is tied to a Customer object. This object holds essential details like their email, payment methods, and billing history.

When a user signs up for your SaaS, you'll typically create a Stripe Customer for them. If they already exist, you'll retrieve their existing customer ID to associate new subscriptions.

Registering a New Customer

To link a user to a subscription, we first need to create a Customer object in Stripe. This is a one-time process for each unique user in your system.

Here's how to create a new customer in Stripe:

import stripe

stripe.api_key = "sk_test_YOUR_SECRET_KEY" # Use your actual test key

try:
    customer = stripe.Customer.create(
        email="janedoe@example.com",
        name="Jane Doe",
        description="Customer for Pro AI Plan"
    )
    print(f"Customer created: {customer.id}")
    print(f"Email: {customer.email}")
except stripe.error.StripeError as e:
    print(f"Error creating customer: {e}")

Activating the Subscription

Now for the main event! With a Product, a Recurring Price, and a Customer, you can create a subscription. This action links the customer to the chosen plan and initiates recurring billing.

When creating a subscription, you specify the customer ID and the price ID. Stripe handles the recurring billing and invoicing automatically.

import stripe

stripe.api_key = "sk_test_YOUR_SECRET_KEY" # Use your actual test key
# IMPORTANT: Replace with actual customer ID (e.g., 'cus_Nq7sN8sN8sN8sN')
CUSTOMER_ID = "cus_YOUR_CUSTOMER_ID" 
# IMPORTANT: Replace with actual price ID (e.g., 'price_1Nq7sN8sN8sN8sN')
PRICE_ID = "price_YOUR_PRICE_ID" 

try:
    subscription = stripe.Subscription.create(
        customer=CUSTOMER_ID,
        items=[{"price": PRICE_ID}],
        # 'expand' helps fetch related objects like the initial invoice
        expand=["latest_invoice.payment_intent"]
    )
    print(f"Subscription created: {subscription.id}")
    print(f"Status: {subscription.status}")
    if subscription.latest_invoice and subscription.latest_invoice.payment_intent:
        print(f"Initial Payment Intent Status: {subscription.latest_invoice.payment_intent.status}")
except stripe.error.StripeError as e:
    print(f"Error creating subscription: {e}")

Lifecycle of a Subscription

Stripe subscriptions go through various statuses indicating their current state. Monitoring these statuses is key for managing user access and support:

  • trialing: Customer is in a trial period.
  • active: Subscription is active and billing successfully.
  • past_due: A payment failed, and Stripe is attempting to recover.
  • canceled: Subscription has been canceled.
  • unpaid: Subscription has exhausted its dunning attempts and is unpaid.

Managing Active Subscriptions

Customers might want to upgrade, downgrade, or cancel their subscriptions. Stripe's API provides methods to handle these actions gracefully:

  • Updating: Change the price, quantity, or add/remove items using stripe.Subscription.modify().
  • Cancelling: End a subscription immediately or at the end of the current billing period using stripe.Subscription.cancel().

These actions often trigger webhooks, which are crucial for keeping your application in sync with Stripe!

Subscription Flow Quiz

Which of the following are essential steps in creating a new recurring subscription for a user in Stripe?

Recap: Your First Subscriptions

Great job! You've learned how to implement recurring billing with Stripe Subscriptions.

  • We covered creating Products and Prices that form the basis of your subscription plans.
  • We explored managing Customers, who are the recipients of these subscriptions.
  • And we successfully created a Subscription, understanding its lifecycle and basic management.

Next, we'll dive into handling Stripe Webhooks to react to payment events and subscription changes in real-time, making your application dynamic and responsive!

Frequently asked questions

Is the “Subscription Management” lesson free?

Yes — the full text of “Subscription Management” is free to read here on the web, and the AI Powered SaaS: Stripe + Auth + Billing + Deploy course includes 4 lessons in total. To practise it interactively (a built-in code editor and a 24/7 AI tutor) and unlock the rest of the AI Powered SaaS: Stripe + Auth + Billing + Deploy course, upgrade to CoddyKit PRO.

What will I learn in “Subscription Management”?

Implement recurring billing logic using Stripe Subscriptions, including plan creation and customer subscription cycles. You practise AI Powered SaaS: Stripe + Auth + Billing + Deploy with hands-on code you run directly in the browser, and a 24/7 AI tutor answers your questions as you work through the lesson.

Do I need any experience to start AI Powered SaaS: Stripe + Auth + Billing + Deploy?

No prior experience is required. AI Powered SaaS: Stripe + Auth + Billing + Deploy on CoddyKit is structured for beginners through advanced learners; this is — lesson 1 of 4, so you can start here or from the beginning and move at your own pace.

How long does the “Subscription Management” lesson take?

Most CoddyKit lessons take about 5–10 minutes. Each one is bite-sized and interactive, so you make steady progress and pick up exactly where you left off across the web and the app.

Can I write and run code in this AI Powered SaaS: Stripe + Auth + Billing + Deploy lesson?

Yes. Every AI Powered SaaS: Stripe + Auth + Billing + Deploy lesson includes a built-in code editor, so you write and run real code right in your browser and get instant AI feedback — no local setup required.

All lessons in this course

  1. Subscription Management
  2. Handling Stripe Webhooks
  3. Customer Portal & Billing History
  4. Metered Billing & Usage-Based Pricing
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