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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.

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.

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:

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):

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.

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:

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.

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.

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!

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

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!