Building a Custom Subscription Management System

When you're starting a SaaS business, you need a way to handle subscriptions. But you don't need to build everything at once. Let's look at how to start small and grow your subscription management system naturally.

Real-World Example: ConvertKit

Nathan Barry started ConvertKit by manually handling each customer subscription. He would personally email customers, track their subscriptions in a spreadsheet, and handle payments through basic Stripe charges. This manual approach let him understand his customers' needs deeply before building automated systems. Now ConvertKit handles millions in revenue with a sophisticated subscription system, but it all started with a simple spreadsheet.

The Three Stages of Subscription Management

Stage 1: Manual Tracking (1-50 customers)

Start with:

- A spreadsheet tracking customer details and renewal dates

- Simple payment links for each plan

- Manual emails for welcome messages and renewal reminders

This approach lets you learn directly from early customers before building complex systems.

Stage 2: Basic Automation (50-500 customers)

Add these elements:

- Simple subscription database

- Automated welcome emails

- Basic billing system integration

- Self-service portal for payment updates

Stage 3: Full System (500+ customers)

Implement:

- Comprehensive subscription lifecycle management

- Automated renewal handling

- Plan upgrade/downgrade flows

- Recovery processes for failed payments

Essential Workflows to Consider

Customer Signup Flow

1. Choose a plan

2. Enter payment details

3. Account creation

4. Welcome experience

Subscription Management

1. Viewing current plan

2. Changing plans

3. Updating payment methods

4. Cancellation process

Key Decision Points

Billing Cycles

- Monthly vs annual billing

- Billing date alignment

- Trial period length

Plan Structure

- Feature tiers

- Usage limits

- Upgrade incentives

Common Pitfalls to Avoid

1. Starting too complex - build what you need now, not what you might need later

2. Skipping the manual stage - you learn crucial insights by handling things manually first

3. Rigid pricing structures - leave room for plan adjustments as you learn

4. Poor upgrade paths - make it easy for customers to grow with you

When to Upgrade Your System

Look for these signals:

1. Manual processes taking too much time

2. Customers requesting self-service options

3. Billing errors increasing

4. Need for better reporting

Extra Tip

Create a "subscription health dashboard" early on. Track basic metrics like monthly recurring revenue (MRR), churn rate, and average revenue per user (ARPU). Even with a manual system, these numbers guide important decisions. Learn more about implementing effective analytics.

Start With Documentation

Create a simple system to document every support interaction. Use minimum viable processes to ensure consistency without overwhelming your team.

Build Support-Development Bridges

Set up regular meetings between support and development teams. Share support insights using customized dashboards to keep everyone aligned.

Test Solutions Quickly

Use feature flags to test solutions with small user groups before full rollout. This reduces risk and accelerates learning.

Measure Impact

Track how your solutions affect support volume and user satisfaction. Implement customer health scoring to measure improvement.

Start With Documentation

Create a simple system to document every support interaction. Use minimum viable processes to ensure consistency without overwhelming your team.

Build Support-Development Bridges

Set up regular meetings between support and development teams. Share support insights using customized dashboards to keep everyone aligned.

Test Solutions Quickly

Use feature flags to test solutions with small user groups before full rollout. This reduces risk and accelerates learning.

Measure Impact

Track how your solutions affect support volume and user satisfaction. Implement customer health scoring to measure improvement.