Variable Product vs. Variable Subscription in WooCommerce: Which One is Best for Selling Yearly Licensed Products?
If you’re running an online store with WooCommerce and selling licensed products (such as software, digital tools, or premium content), you’ll need to decide between two key product types: Variable Product and Variable Subscription.
Choosing the right one can significantly impact your revenue, customer retention, and overall ease of management. In this guide, we’ll break down the differences between these two options and help you determine the best choice for selling yearly subscription-based licensed products.
Understanding Variable Product in WooCommerce
A Variable Product in WooCommerce is used when selling a product that has multiple variations (such as different sizes, colors, or feature tiers) but is purchased as a one-time payment.
Key Features of a Variable Product:
✅ Allows different variations of a product (e.g., Basic, Pro, Enterprise)
✅ Customers make a single payment to purchase the product
✅ No automatic renewals – customers must repurchase when the license expires
✅ Suitable for digital products where a new version may require a separate purchase
Example Use Case:
Imagine you are selling software licenses with different pricing tiers:
- Basic License – $49
- Pro License – $99
- Enterprise License – $199
With a Variable Product, the customer selects their preferred version, pays once, and owns it until they decide to repurchase or upgrade later.
Understanding Variable Subscription in WooCommerce
A Variable Subscription is an advanced product type (available via the WooCommerce Subscriptions plugin) that enables recurring payments. This is ideal for services or products that require regular renewals, such as annual licenses, memberships, or digital services.
Key Features of a Variable Subscription:
✅ Allows different variations (e.g., Monthly Plan, Yearly Plan, Lifetime Access)
✅ Supports automatic recurring payments (monthly, yearly, etc.)
✅ Customers don’t need to manually renew—subscriptions renew automatically
✅ Supports free trials, signup fees, and prorated billing
✅ Compatible with major payment gateways (Stripe, PayPal, etc.)
Example Use Case:
Let’s say you sell annual software licenses with the following plans:
- Basic License – $49/year
- Pro License – $99/year
- Enterprise License – $199/year
With a Variable Subscription, the customer subscribes once, and the system automatically bills them each year unless they cancel.
Which One is Best for Selling Yearly Licensed Products?
If you’re selling a licensed product that requires annual renewals, a Variable Subscription is the best choice. Here’s why:
✅ 1. Automates Renewals & Boosts Customer Retention
With Variable Subscription, you eliminate the risk of customers forgetting to renew. The system will automatically charge them when the next billing cycle starts, ensuring a steady revenue stream.
✅ 2. Saves Time on Manual Follow-ups
With a Variable Product, you’d have to remind customers to repurchase their license manually. With a subscription model, renewals happen automatically, reducing administrative work.
✅ 3. Predictable Revenue & Business Growth
Subscription-based models offer predictable recurring revenue, making it easier to forecast earnings and grow your business.
✅ 4. Flexible Upgrade/Downgrade Options
Customers can switch plans easily (e.g., upgrade from Basic to Pro) without needing to buy a new product separately.
When Should You Use a Variable Product Instead?
If your business model doesn’t rely on automatic renewals, and you prefer customers to manually repurchase licenses when they expire, a Variable Product may be a better fit.
✅ Best for one-time purchases with optional renewals
✅ Useful when selling non-subscription digital products
✅ Ideal if you want customers to make a new purchase for each update/version
Example: If you’re selling a software license that customers must repurchase for each new version release, a Variable Product might work better.
Final Recommendation
If you want to sell yearly subscriptions for licensed products efficiently, go with a Variable Subscription. It ensures seamless renewals, reduces churn, and simplifies the purchasing experience for your customers.
However, if you prefer a one-time purchase model, a Variable Product can work, but you’ll need to manually remind customers to renew.
Need Help Setting Up WooCommerce Subscriptions?
Setting up WooCommerce Subscriptions can seem overwhelming, but with the right configuration, it can streamline your business and increase revenue. If you need help setting up your subscription products, integrating payment gateways, or optimizing your WooCommerce store, feel free to reach out!
Start maximizing your subscription revenue today!
