PostHog Handbook Library / Growth

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# Customer billing configurations

This document outlines all possible billing configurations for customers at PostHog. The goal is to ensure the team is on the same page with the different configurations we support to ensure things move smoothly as we scale. We want to ensure they support the billing repo, dashboard, usage reports, revenue reporting, etc.

Below are the main configurations. Each outlines how the Stripe accounts are setup and billing and how we account for revenue on them.

1. Free plan customers

- We don't need to worry about these users because they aren't paying anything, even if they have a Stripe account.

1. Paid plan customers

- Regular user on a paid plan with no credits.
- Pay the invoice directly with no funny business
- Can be with or without tax.
- Every line item on the invoice is a product with a product key
- Should be using default products/prices
- Should only have 1 stripe account and 1 subscription
- Details
- mrr = sum(mrr products) + tax

1. Start-up plan customers

- Startup plan where users receive credits (e.g., $50,000).
- Credits apply to all charges until the credits run out.
- Credit usage needs to be tracked.
- Metadata added to Stripe account (`is_startup_plan_customer`, `credit_expires_at`, etc.).
- There is an RFC in the works to update this metadata for better tracking.
- We are going to revisit this process.
- Revenue is not earned until credits are depleted or expired.
- Can be with or without tax.
- Should be using default products/prices.
- Should only have 1 stripe account and 1 subscription.
- Details
- mrr = 0 while on credits
- mrr per product = 0 while on credits

1. Enterprise customers

- Enterprise customers pay an invoice for credits (before the subscription is created).
- Once the invoice is paid, the subscription is created by revops.
- Much of this is done via Zapier. See the docs for more info.
- Credits apply to their usage.
- Credits reduce product charges on invoices.
- Should be using default products/prices.
- Details:
- mrr comes from the actual usage in that month (minus the credit-discount-percent on the customer)

##### Legacy configuration

Note: this above list is focused about the creation of new customers going forward – there are many existing configurations not covered directly in this document.

Canonical URL: https://posthog.com/handbook/growth/billing/customer-billing-configurations

GitHub source: contents/handbook/growth/billing/customer-billing-configurations.md

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