Addons

An addon contains additional features that are not part of the subscribed plan, but are made available to customers on purchase of the addon.

Additional features like time tracking and syncing with third party apps (say) can be offered as addons.

Below are a list of things that will help you better understand addons. You can use the Addon Operations section to find out how to create, edit, delete or make an addon inactive. The Addon Fields section describes in detail about all the addon fields.

Addon Operations

Addon Fields


Creating an addon

To create an addon, please follow the below steps.

Create a new addon

Associating addons with plans

You can associate addons with all or selected plans. Associating addons with plans can be done while creating and editing an addon.

Associate addons to plans

Editing addon details

Making an addon inactive

An addon can be made inactive if you do not want to associate it with new subscriptions but want subscriptions for which the addon has already been applied to still make use of it.

To make an addon inactive, go to the Products tab and click Mark as inactive on the required addon.

Deleting an addon

An addon can be deleted only if it is not associated with any subscriptions.

To delete an addon, go to the Products tab and click Delete under the addon to be deleted.

Edit, delete or make an addon inactive

Addon Fields

Here’s what the addon creation form will look like.

Addon fields

Types of addons

There are two types of addons - One-time and recurring.

One-time addons - Customers are charged only once for a one-time (non-recurring) addon. A separate invoice is raised for a one time addon

You can offer a one time addon which let users to back up all their data in the cloud. Typically, users would not want to back up date often. This requirement would call for a specific occasion. So backing up data in the cloud can be a one time addon.

Recurring addons - These addons are ideal when you need to bill the customer for the same feature each time.

Consider a project management software. There can be an addon which allows users to view their projects as Gantt charts. You can charge for this addon each time you charge for the plan making it a recurring addon.

Renewing recurring addons

The price of recurring addons are included only at the time of renewal of the plan.

Example 1:

Plan: Billed monthly
Cost of plan: $20

Addon: Billed monthly
Cost of addon: $5
Each subscription charge costs $20 + $5 = $25

Example 2:

Plan: Billed once a year
Plan cost: $50/year

Addon: Charged every month
Addon cost: $5/month
Total cost of subscription: $110 ($50 + 12 * $5) for the whole year

Example 3:

The below method of calculation is applicable only for Pricing Schemes - Unit and Volumes and not for Tier and Package. For Tier and Package schemes, the addon cost will not be divided rather the full amount will be applied every month.

Plan: Monthly
Cost of plan: $10

Addon: Billed yearly
Cost of addon for an year: $48
Each subscription charge costs $10 + ($48/12) = $14/month

Pricing schemes

Unit - Addons are priced per unit . So the per unit price of an addon has to be specified.

Example - If a customer wants to buy two addons with a unit pricing scheme that cost $5/addon, the total price for the addon would be $10 (2 * $5).

Volume - In this pricing scheme, the price for an addon is determined by the quantity of addon purchased. Pricing brackets are created to specify prices based on quantity.

Example - You can create different pricing brackets.

If a customer purchases 3 addons, the total cost would be $15 (3 * $5) AND If a customer purchases 8 addons, his total cost will be $24 (8 * $3).

Tier - Quantity determines the price of the addons as well. The only difference here is that the total price is the cumulative cost of per unit prices mentioned in the pricing brackets.

Example - Let’s consider the below pricing bracket.

If a customer purchases 7 addons, the total price of the customer will be (5 * $6) + ( 2 * $4) = $38.

Package - A specified quantity of addons can be offered at a fixed price.

Example - The cost of 5 addons (say) can be fixed at $20.

Account

This is another portion where the seamless integration with Zoho Books comes into play. You can store an addon’s revenue in an Income account in Zoho Books.

Whenever a customer subscribes to a addon, the corresponding addon’s revenue will be mapped into the account that you choose from the drop down. The drop down displays the list of Income accounts in Zoho Books.

Map addon revenue

To get an account listed in the drop down, you’ll have to create an Income account (Income/Other Income) in Zoho Books.

Create income account

VAT

You can add VAT to your addon.

To get a VAT listed in the drop down follow the below steps.

Create new vat

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