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Catalog

Add-on

An optional purchasable extra attached to a subscription, billed alongside the base plan.

An add-on is something bought on top of a plan: extra storage, a premium support tier, an additional module, a block of credits.

Add-ons are a common source of expansion MRR because they let an account grow without a plan change. They also need the same machinery as plans: their own prices, their own proration when added mid-cycle, and their own line on the invoice, because “your bill went up” without a line item is a support ticket.

Related terms

  • Plan A named, purchasable package of prices and entitlements. The thing a customer subscribes to.
  • Product catalog The structured set of products, plans, prices, add-ons and entitlements a business sells.
  • Expansion MRR Additional recurring revenue from existing customers: upgrades, added seats, add-ons and contracted usage growth, excluding anything from new customers.
  • Proration Charging or crediting for part of a billing period when a subscription changes mid-cycle.