Billing Lifecycle Management

Subscription lifecycle orchestration system managing customer billing states from 21-Day Build Access Pass through cancellation, with automated workflows for trial conversion, plan transitions, payment recovery, and revenue optimization.

Overview

Billing lifecycle encompasses three critical pathways:

1. Trial Conversion: 21-Day Build Access Pass with day-21 ownership decision point
2. Subscription Management: Plan transitions, billing cycles, add-ons, and payment processing
3. Revenue Recovery: Dunning workflows, retention offers, and cancellation handling

System operates as finite state machine ensuring predictable transitions and automated interventions at optimal points.

Trial Management

21-Day Build Access Pass

Unique trial structure with ownership contingency:

• Day 0-20: Full Build tier access for product creation
• Day 21 Decision Gate: Accept subscription to retain ownership and access
• Ownership Model: Product created during trial remains in MECLABS environment until subscription accepted
• Conversion Path: Seamless transition to selected tier (Build/Sell/Scale) upon acceptance
• Decline Consequence: Access terminated, product ownership not transferred

Trial Conversion Optimization

The system tracks engagement metrics during the trial period to trigger targeted conversion campaigns at optimal intervention points (typically days 7, 14, and 20).

Voucher Gate System

$10,000 funded build program for qualified prospects:

• Funding: MECLABS covers build costs for one ADS + one Agent
• Commitment: Day-21 acceptance triggers 12-month subscription
• Scarcity Lever: 10 funded builds per cycle maximum
• Support Level: Dedicated implementation specialist assigned
• Success Metric: Target 70% conversion from funded builds

Subscription Tiers

Plan Structure

The platform offers three primary subscription tiers with distinct capability unlocks:

Tier	Monthly	Annual (15% discount)	Key Capability Unlocks
Build	$585	$495/mo ($5,940/yr)	MVP creation, lead-gen ADS
Sell	$1,170	$995/mo ($11,940/yr)	Stripe connector, SuperFunnel Builder
Scale	$3,525	$2,995/mo ($35,940/yr)	MCP connector, testing suite, analytics

Two-Year Price Lock: Pricing guaranteed for 24 months from initial subscription date

Plan Inclusions

Bundled resources scaling with tier:

Resource	Build	Sell	Scale
Org Members (internal seats)	5	12	30
Customer Kits (external)	0	10	45
Pooled Credits (MLC)	6,000	18,000	75,000

Customer Kit Specification: Each kit includes 1 login + 1,000 MLC credits (no additional workspaces)

Upgrade/Downgrade Logic

Upgrade Triggers

The system monitors usage patterns and surfaces upgrade prompts when customers hit natural growth ceilings:

Build → Sell Triggers

• Payment Processing: Attempting Stripe connector activation
• Funnel Builder: Accessing SuperFunnel Builder features
• Seat Ceiling: Exceeding 5 Org Members
• Credit Threshold: Consuming >80% of 6,000 MLC pool
• Customer Kit Need: First external seat requirement

Sell → Scale Triggers

• Kit Ceiling: Exceeding 10 Customer Kit allocation
• Seat Ceiling: Exceeding 12 Org Members
• Data Integration: MCP connector requirement
• Testing Suite: A/B testing or analytics dashboard access
• Credit Threshold: Consuming >80% of 18,000 MLC pool

Proration Handling

Daily proration for all plan transitions:

• Upgrades: Immediate access, prorated charge for billing period remainder
• Downgrades: Scheduled for next billing cycle (no mid-cycle downgrades)
• Credit Carryover: Unused credits transfer maintaining original 90-day expiration
• Calculation: Precise daily rate based on 365-day year

Downgrade Restrictions

Downgrades that would exceed new tier limits (seats/kits) require reduction before processing. The system blocks downgrades until compliance is achieved.

Billing Cycles

Payment Schedules

Flexible billing with pricing guarantees:

• Monthly Billing: Credit card only, auto-renewal on anniversary date
• Annual Billing: 15% discount applied automatically
  • Credit card: Immediate charge
  • Net-30 invoicing: Available with credit approval
• Two-Year Price Lock: Pricing frozen for 24 months from initial subscription regardless of tier changes

Cycle Transitions

Customers can switch between monthly and annual billing:

• Monthly → Annual: Immediate switch with proration credit
• Annual → Monthly: Takes effect at annual renewal date
• Mid-cycle Changes: All adjustments calculate precise daily proration

Payment Processing

Primary Payment Methods

• Credit/Debit Cards: Stripe processing with PCI-compliant tokenization
• ACH/Bank Transfer: Annual contracts only (minimum $5,940)
• Net-30 Invoicing: Annual commitment required, credit approval process
• International: Multi-currency support via Stripe, real-time conversion rates

Failed Payment Recovery

The dunning management system implements a multi-stage recovery process:

1. Day 0: Initial charge failure, immediate retry
2. Day 3: Second attempt with email notification
3. Day 7: Third attempt with in-app warning banner
4. Day 14: Final attempt before account restrictions
5. Day 21: Read-only mode activated
6. Day 30: Full suspension with data retention

Add-On Management

Dynamic Resource Allocation

On-demand resource purchasing:

• Org Member Seats: $80/seat/month (draws from pooled credits)
• Customer Kits: $20/kit/month (includes 1 login + 1,000 MLC credits)
• Credit Top-ups: $0.0135/MLC (35% markup over raw compute)
• Expiration Policy: All credits expire 90 days from purchase date

Overage Handling

Seamless continuation when pooled credits exhausted:

1. Automatic Billing: Draws from payment method at $0.0135/MLC
2. Alert Thresholds: Notifications at 80%, 90%, 100% consumption
3. Auto-Purchase Option: Pre-authorized credit blocks (10,000 MLC increments)
4. No Service Interruption: Overage billing prevents workflow disruption

Cancellation Workflows

Voluntary Cancellation

Customer-initiated cancellations follow a retention-optimized flow:

1. Exit Survey: Capture cancellation reason and feedback
2. Retention Offer: Present targeted save offer based on usage patterns
3. Downgrade Option: Suggest lower tier if cost is primary concern
4. Grace Period: 14-day reactivation window with data preserved
5. Final Export: Automated data export package sent via email

Involuntary Churn

System-initiated cancellations for non-payment:

• 30-day suspension period before permanent termination
• Data retained for 90 days post-cancellation
• One-click reactivation if payment issues resolved

Data Retention Policy

After 90 days post-cancellation, all customer data including AI agents, workflows, and libraries are permanently deleted. Customers are notified at 60 and 85 days.

Revenue Recognition

Subscription Revenue

• Monthly Plans: Recognized ratably over service month
• Annual Plans: Deferred revenue, amortized monthly over 12 months
• Credits: Recognized at consumption (usage-based recognition)
• Customer Kits: Monthly recurring revenue recognized ratably

Productized Service Pack Revenue

Fixed-price service packs with defined recognition:

Service Pack	Price Range	Recognition Schedule
IP Preparation & Structuring	$1,500-$2,500	25% initiation / 50% delivery / 25% acceptance
Custom ADS (Foundation)	$5,000	25% initiation / 50% delivery / 25% acceptance
Custom Workflow	$2,500-$4,500	25% initiation / 50% delivery / 25% acceptance
Custom Expert/App	$1,500-$2,000	50% initiation / 50% delivery
Custom Library	$1,500-$2,500	50% initiation / 50% delivery

Partner Billing

Certified Partner Program

Lifetime commission structure for resellers:

• Revenue Split: 60% MECLABS / 40% Partner (lifetime on referred accounts)
• Commission Base: Net collected revenue (post-refunds, chargebacks)
• Payment Terms: Monthly disbursement, Net-15 after month close
• Minimum Payout: $100 threshold for disbursement
• Kit Resale: Partners purchase at $20, typical resale $49+ for margin stacking

White-Label Billing

Partner-controlled pricing with backend support:

• Collection: Partner bills end customer directly
• Wholesale Rates: MECLABS invoices partner at platform rates minus 40% commission
• Pricing Freedom: Partner sets own pricing, bundles, terms
• Support Model: MECLABS provides tier-2 technical support only

Compliance & Taxation

Tax Handling

• US Sales Tax: Automated calculation via Stripe Tax
• VAT/GST: Reverse charge mechanism for B2B transactions
• Tax Exemption: Certificate upload and verification system

Invoice Management

• Automated invoice generation with customizable templates
• Multi-currency support with real-time conversion
• Consolidated billing for multi-workspace accounts

Analytics & Reporting

Key Metrics Tracked

• MRR/ARR: Monthly and annual recurring revenue by tier
• Churn Rate: Voluntary vs involuntary, cohort analysis
• LTV:CAC Ratio: Target 3:1 minimum, tracked by acquisition channel
• Net Revenue Retention: Including upgrades, downgrades, churn
• Upgrade Velocity: Build→Sell and Sell→Scale conversion rates
• Payment Recovery: Dunning success rate by attempt stage
• Credit Utilization: Consumption patterns and breakage rates

Automated Alerts & Interventions

• Churn Risk: Score based on login frequency, credit usage, feature adoption
• Payment Prediction: ML model flags high-risk payment methods
• Upgrade Triggers: Usage approaching tier thresholds
• Credit Anomalies: Spike detection for potential abuse
• Trial Engagement: Daily monitoring with intervention at days 7, 14, 20

Implementation Notes

State Machine Architecture

The billing lifecycle operates as a finite state machine with defined transitions:

type BillingState =
  | "trial"
  | "active"
  | "past_due"
  | "suspended"
  | "cancelled"
  | "churned";

Webhook Integration

All billing events trigger webhooks for downstream systems:

• Subscription created/updated/cancelled
• Payment succeeded/failed
• Credit threshold reached
• Plan transition completed

Idempotency

All billing operations support idempotency keys to prevent duplicate charges during network failures or retries.

Best Practices

Revenue Optimization

1. Trial Conversion: Intervene at days 7, 14, 20 based on engagement metrics
2. Upgrade Triggers: Surface prompts when hitting 80% of tier limits
3. Annual Push: Display 15% savings prominently, default to annual toggle
4. Dunning Graduation: Escalate urgency while maintaining brand voice
5. Cohort Analysis: Segment by acquisition channel for targeted retention

Common Pitfalls

• Downgrade Timing: Never allow mid-cycle downgrades disrupting active workflows
• Data Deletion: Require explicit consent with 60-day and 85-day warnings
• Proration Transparency: Display calculations in billing dashboard
• Payment Testing: Validate retry logic across all failure scenarios
• Credit Expiration: Clear communication of 90-day policy at purchase