Configuring Lemon Squeezy Billing

Lemon Squeezy is a payment processor that allows you to charge your users for your SaaS product. It is a Merchant of Record, which means they handle all the billing and compliance for you.

For using Lemon Squeezy, we need to first set it as the default billing provider:

NEXT_PUBLIC_BILLING_PROVIDER=lemon-squeezy

Also, we need to switch the DB config to use Lemon Squeezy

update config set billing_provider = 'lemon-squeezy';

Then, you'll need to set the following environment variables:

LEMON_SQUEEZY_SECRET_KEY=
LEMON_SQUEEZY_SIGNING_SECRET=
LEMON_SQUEEZY_STORE_ID=

I am aware you know this, but never add these variables to the .env file. Instead, add them to the environment variables of your CI/CD system.

To test locally, you can add them to the .env.local file. This file is not committed to Git, therefore it is safe to store sensitive information in it.

Schema Definition

Makerkit's billing configuration allows adding multiple line items into a single subscription: for example, you can mix flat fees, metered usage, and per-seat billing.

Lemon Squeezy does not support multiple line items like Stripe. The billing schema will fail validation if you do so, and you will need to adjust it.

However, with Lemon Squeezy, you can adjust various fields to fit your needs, albeit with very limited flexibility.

Metered Usage

Metered Usage can only be applied to the entire subscription, not to individual line items. For example, if you have a plan that charges $1 per 1000 requests, you can set the tiers property to charge $1 per 1000 requests.

However, you cannot have a plan that charges $1 per 1000 requests for one line item and $2 per 1000 requests for another line item. Or using a flat fee for one line item and metered usage for another.

Setup Fee + Metered Usage

Lemon Squeezy has support for the property setupFee: this property allows you to create a metered usage plan with a setup fee. That is, assuming you have a plan that charges a flat fee of $10 and then $1 per 1000 requests, you can set the setupFee to 10 and then set up the tiers to charge $1 per 1000 requests.

NB: the setup fee is only charged once, when the subscription is created.

Testing locally

To receive webhooks from Lemon Squeezy, you need a proxy. You can create one for free with ngrok (or others). Once set up, create a webhook in Lemon Squeezy pointing to {proxy-url}/api/billing/webhook where {proxy-url} is a valid URL pointing to your local machine.

If your proxy is for example https://myawesomeproxy.com you will use https://myawesomeproxy.com/api/billing/webhook as the endpoint in Lemon Squeezy.

Production

When going to production, you will set your exact application URL and scratch {proxy-url}. Don't forget, please.

Please set the following webhook events in Lemon Squeezy:

  1. order_created
  2. subscription_created
  3. subscription_updated
  4. subscription_expired