How to Set Up a WooCommerce Subscription Model for Recurring Revenue

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Subscription models have exploded in popularity because they give businesses predictable revenue while offering customers ongoing access to products and services. Global subscription revenue has surged over the last decade. Market researchers project that the subscription economy will grow from US $487 billion in 2024 to US $2.13 trillion by 2034—a compound annual growth rate (CAGR) of ~15.9 %. Digital subscriptions account for the lion’s share of subscription revenue (over 40 %), while subscription e‑commerce, SaaS and social‑media subscriptions make up another 10 %, 8 % and 8 % respectively. With this growth and variety, subscription billing isn’t limited to SaaS; it can be applied to subscription boxes, memberships, content access and services.

Built Mighty is an official WooCommerce agency partner, and we’ve helped many merchants build custom subscription solutions using the WooCommerce Subscriptions extension. Below is an overview of how subscription models work, examples from different industries, and a step‑by‑step guide to implement them in your WooCommerce store.

Why subscriptions?

• Predictable recurring revenue. A subscription model converts one‑time purchases into regular payments. 

• Customer loyalty and lifetime value. Because subscribers commit to regular payments, businesses can focus on retention instead of constant acquisition. 

• Lower upfront barrier. By spreading costs over time, subscriptions make products accessible. Free trials and sign‑up fees allow merchants to tailor the customer’s entry point.
  
• Scalability. Many industries—from streaming to food delivery—use subscriptions.

Examples of subscription models

Industry	How subscriptions work	Example features
Physical goods (subscription boxes)	Customers receive curated physical products on a set schedule. Use variable subscriptions for different tiers (e.g., monthly vs. quarterly shipments or small vs. deluxe box). You can charge a sign‑up fee and optionally offer a free trial.	Monthly coffee club; gourmet snack boxes; beauty boxes. Integrate shipping rules to charge shipping on the first order only (via the One‑Time Shipping setting).
Digital content & membership	Access to premium content, e‑learning or communities. Combine WooCommerce Subscriptions with WooCommerce Memberships to restrict content to active subscribers. Offer tiered access with variable subscriptions.	Online magazines, premium blogs, fitness programs, community memberships. Use the drip downloadable content setting to release content after each renewal.
Software as a Service (SaaS)	Sell software licenses or API access on recurring plans. Payment schedules can be daily, weekly, monthly or yearly; intervals from 1 to 6 are supported. Use variable subscriptions for plan tiers (basic/pro/premium).	Project‑management SaaS, design tools, analytics platforms. Integrate license‑key management or user‑seat limits through custom code or third‑party plugins.
Services and maintenance	Recurring services like lawn care, home maintenance or personal training. Customers subscribe for recurring appointments or usage credits.	Pair WooCommerce Subscriptions with a booking/appointments plugin so that subscription renewals generate the appropriate appointments.
Consumables (subscribe & save)	Regular deliveries of consumables such as pet food, vitamins or cosmetics. Offer discounts for subscribers and use free trials or lower sign‑up fees to encourage adoption.	Subscribe & Save for toothpaste or razor blades. Mixed checkout lets customers purchase non‑subscription items with their subscription in one transaction.

Step‑by‑step: Setting up WooCommerce Subscriptions

1. Prepare your site

1. Ensure WordPress and WooCommerce are installed and updated. WooCommerce must be active because the subscriptions extension builds on the core product and order structures.
   
2. Purchase and install the WooCommerce Subscriptions extension. After purchasing from WooCommerce.com, download the .zip file, go to Plugins → Add New → Upload Plugin in your WordPress dashboard, upload and activate the extension.
   
3. Verify your payment gateway supports recurring payments. WooPayments, PayPal Payments, Stripe and many others support automatic recurring billing. You’ll need an account with at least one supported gateway before taking payments.
   

2. Configure general subscription settings

After activating WooCommerce Subscriptions, a Subscriptions tab appears under WooCommerce → Settings. Configure the following settings:

• Button text: Change the “Add to Cart” and “Place Order” button text that appears for subscription products. This can improve clarity (e.g., “Subscribe now”).
  
• Role settings: When a customer purchases a subscription, WooCommerce must create a user account regardless of your general WooCommerce settings because the subscription is an ongoing agreement. Choose which WordPress role (Subscriber is default) to assign on sign‑up and which role to assign when a subscription expires or is cancelled.
  
• Miscellaneous settings: Enable $0 initial checkout to allow free‑trial subscriptions without requiring a payment method, configure download drip settings for digital products, and control how many times customers can suspend their subscription. You can also enable mixed checkout so subscription products can be purchased alongside regular products.
  
• Renewal settings & synchronization: Adjust the retry rules for failed payments and, if desired, synchronize renewals so all subscribers to a product renew on the same date (e.g., first of the month). These options help align billing and fulfillment schedules.
  

3. Create subscription products

WooCommerce Subscriptions adds new product types for recurring billing. You can create Simple Subscriptions or Variable Subscriptions.

Simple subscription

To create a simple subscription product:

1. Go to Products → Add New.
   
2. In the Product data panel, select Simple subscription as the product type.
   
3. Set the subscription price, payment schedule, subscription length, optional sign‑up fee and free trial. For example, price = $20, billing period = every month, length = “–” (indefinite), sign‑up fee = $0, free trial = 14 days. Free trials encourage sign‑ups; sign‑up fees offset onboarding costs.
   
4. Add your product description, images, categories and tags as you would for any WooCommerce product.
   
5. Click Publish.
   

Variable subscription

Variable subscriptions allow customers to choose between different tiers (e.g., monthly vs. annual or basic vs. premium). Each variation has its own subscription price and schedule. To create one:

1. Go to Products → Add New and select Variable subscription.
   
2. Under the Attributes tab, add an attribute such as “Billing Interval” with values like “Monthly”, “Quarterly” and “Yearly”. Make sure to enable “Used for variations.”
   
3. Under the Variations tab, create a variation for each billing interval and configure each with its own price, schedule and optional sign‑up fee.
   
4. Publish the product.
   

4. Customize subscription options

Subscription products have extra options not found in regular products. Use them to tailor your billing model:

• Subscription price: Amount charged at each renewal.
  
• Payment schedule: Frequency of renewal—daily, weekly, monthly or yearly—and an interval (1–6). For example, every 2 weeks or every 3 months.
  
• Subscription length: Optional end date (e.g., 6 months or 12 billing cycles).
  
• Sign‑up fee: One‑time fee charged at checkout.
  
• Free trial period: Optionally delay billing until after a trial.
  
• One‑time shipping: For physical products, charge shipping only on the first order.
  
• Limit subscription: Restrict customers to a single active subscription or one of each product.
  
• Renewal synchronization: Align all renewals for a product to a specific day (e.g., first of the month).
  

5. Set up payment gateways

Customers must be billed automatically at renewal. Set up at least one payment gateway that supports recurring payments. WooPayments, Stripe, PayPal Payments and Authorize.Net provide recurring billing. In WooCommerce → Settings → Payments, activate your chosen gateway(s) and connect your account. Ensure your gateway supports the currencies and countries you serve.

6. Test and launch

Before going live, create test subscription products and run through the checkout process using test credentials. WooCommerce Subscriptions provides a failed payment retry system and test mode for many gateways. Verify that sign‑up fees, free trials and renewal schedules behave as expected. Test automatic renewal emails and ensure they convey subscription details clearly.

When satisfied, publish your subscription products and announce the offering to customers. Use WooCommerce’s builtin coupons to provide recurring discounts or sign‑up fee discounts to encourage adoption. Mixed checkout can allow customers to bundle subscriptions with one‑time purchases.

Tips for sustainable recurring revenue

• Deliver consistent value: Price increases were the most common reason for cancellations (47 % of cancelations). Focus on delivering value, communicating enhancements and using tiered pricing instead of blanket increases.
  
• Offer variety and flexibility: Companies with multiple revenue models saw faster Average Revenue Per Account (ARPA) growth than those with a single model. Offer different tiers, add‑ons or hybrid one‑time plus subscription bundles.
  
• Monitor churn: Around 39 % of subscribers plan to cancel at least one subscription in the next year. Implement retention strategies—loyalty perks, pause/suspend options and targeted win‑back campaigns.
  
• Use analytics: Subscriptions generate rich lifecycle data. Use WooCommerce analytics or integrate with platforms like Metorik to monitor subscriber cohort retention, churn and lifetime value.
  
• Plan for growth: As your subscriber base grows, consider performance optimisation (caching, database tuning), and ensure your payment gateway can handle volume. Invest in customer support to manage billing inquiries and cancellations.
  

Need help?

WooCommerce subscriptions unlock a flexible, scalable way to generate recurring revenue—whether you’re shipping monthly coffee boxes, offering software licences or providing membership content. The global subscription economy is a growing market,  but success requires thoughtful pricing, compelling value and reliable technology. Built Mighty specialises in custom WooCommerce integrations, plugins and subscription implementations. As an official WooCommerce agency partner, we can integrate WooCommerce Subscriptions with your existing systems, optimize checkout flows, build tiered membership solutions, and ensure your subscription model scales with your business.

Ready to build predictable revenue? Contact Built Mighty to discuss your subscription strategy.