diff --git a/test/api/unit/libs/payments/payments.test.js b/test/api/unit/libs/payments/payments.test.js
index 0e8d5e34ae..3ffd1230e4 100644
--- a/test/api/unit/libs/payments/payments.test.js
+++ b/test/api/unit/libs/payments/payments.test.js
@@ -13,7 +13,7 @@ import {
 import * as worldState from '../../../../../website/server/libs/worldState';
 import { TransactionModel } from '../../../../../website/server/models/transaction';
 
-describe('payments/index', () => {
+describe.only('payments/index', () => {
   let user;
   let group;
   let data;
@@ -235,6 +235,48 @@ describe('payments/index', () => {
         expect(recipient.purchased.plan.customerId).to.eql('customer-id');
       });
 
+      it('sets plan.perkMonthCount to zero if user is not subscribed', async () => {
+        recipient.purchased.plan = plan;
+        recipient.purchased.plan.perkMonthCount = 1;
+        recipient.purchased.plan.customerId = undefined;
+        data.sub.key = 'basic_earned';
+        data.gift.subscription.key = 'basic_earned';
+        data.gift.subscription.months = 1;
+
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(1);
+        await api.createSubscription(data);
+
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(0);
+      });
+
+      it('adds to plan.perkMonthCount if user is already subscribed', async () => {
+        recipient.purchased.plan = plan;
+        recipient.purchased.plan.perkMonthCount = 1;
+        data.sub.key = 'basic_earned';
+        data.gift.subscription.key = 'basic_earned';
+        data.gift.subscription.months = 1;
+
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(1);
+        await api.createSubscription(data);
+
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(2);
+      });
+
+      it('awards perks if plan.perkMonthCount reaches 3', async () => {
+        recipient.purchased.plan = plan;
+        recipient.purchased.plan.perkMonthCount = 2;
+        data.sub.key = 'basic_earned';
+        data.gift.subscription.key = 'basic_earned';
+        data.gift.subscription.months = 1;
+        
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(2);
+        await api.createSubscription(data);
+
+        expect(recipient.purchased.plan.perkMonthCount).to.eql(0);
+        expect(recipient.purchased.plan.consecutive.trinkets).to.eql(1);
+        expect(recipient.purchased.plan.consecutive.gemCapExtra).to.eql(5);
+      });
+
       it('sets plan.customerId to "Gift" if it does not already exist', async () => {
         expect(recipient.purchased.plan.customerId).to.not.exist;
 
@@ -438,6 +480,19 @@ describe('payments/index', () => {
         expect(user.purchased.plan.dateCurrentTypeCreated).to.not.eql(initialDate);
       });
 
+      it('keeps plan.perkMonthCount when changing subscription type', async () => {
+        await api.createSubscription(data);
+        user.purchased.plan.perkMonthCount = 2;
+        await api.createSubscription(data);
+        expect(user.purchased.plan.perkMonthCount).to.eql(2);
+      });
+
+      it('sets plan.perkMonthCount to zero when creating new subscription', async () => {
+        user.purchased.plan.perkMonthCount = 2;
+        await api.createSubscription(data);
+        expect(user.purchased.plan.perkMonthCount).to.eql(0);
+      });
+
       it('awards the Royal Purple Jackalope pet', async () => {
         await api.createSubscription(data);
 
diff --git a/website/server/libs/payments/subscriptions.js b/website/server/libs/payments/subscriptions.js
index 193b3276c8..f9a160326c 100644
--- a/website/server/libs/payments/subscriptions.js
+++ b/website/server/libs/payments/subscriptions.js
@@ -114,6 +114,7 @@ async function prepareSubscriptionValues (data) {
   let purchaseType = 'subscribe';
   let emailType = 'subscription-begins';
   let recipientIsSubscribed = recipient.isSubscribed();
+  let isNewSubscription = !recipientIsSubscribed
 
   //  If we are buying a group subscription
   if (data.groupId) {
@@ -154,6 +155,10 @@ async function prepareSubscriptionValues (data) {
 
   const { plan } = recipient.purchased;
 
+  if (isNewSubscription) {
+    plan.perkMonthCount = 0;
+  }
+
   if (data.gift || !autoRenews) {
     if (plan.customerId && !plan.dateTerminated) { // User has active plan
       plan.extraMonths += months;
@@ -228,6 +233,7 @@ async function prepareSubscriptionValues (data) {
     itemPurchased,
     purchaseType,
     emailType,
+    isNewSubscription
   };
 }
 
@@ -243,13 +249,16 @@ async function createSubscription (data) {
     itemPurchased,
     purchaseType,
     emailType,
+    isNewSubscription
   } = await prepareSubscriptionValues(data);
 
+  console.log()
   // Block sub perks
-  if (months > 0) {
+  if (months > 0 && (!data.gift || !isNewSubscription)) {
     if (!data.gift && !groupId) {
       plan.consecutive.offset = months;
     }
+    console.log("giving benes");
     await plan.incrementPerkCounterAndReward(recipient._id, months);
   }
 
diff --git a/website/server/models/subscriptionPlan.js b/website/server/models/subscriptionPlan.js
index 2095c4b6d9..db4c39725b 100644
--- a/website/server/models/subscriptionPlan.js
+++ b/website/server/models/subscriptionPlan.js
@@ -3,6 +3,9 @@ import validator from 'validator';
 import baseModel from '../libs/baseModel';
 import { TransactionModel as Transaction } from './transaction';
 
+// multi-month subscriptions are for multiples of 3 months
+const SUBSCRIPTION_BASIC_BLOCK_LENGTH = 3;
+
 export const schema = new mongoose.Schema({
   planId: String,
   subscriptionId: String,
@@ -49,6 +52,8 @@ schema.plugin(baseModel, {
 
 schema.methods.incrementPerkCounterAndReward = async function incrementPerkCounterAndReward
 (userID, adding) {
+  // if perkMonthCount wasn't used before, initialize it.
+  if (!this.perkMonthCount) this.perkMonthCount = this.consecutive.count % SUBSCRIPTION_BASIC_BLOCK_LENGTH;
   this.perkMonthCount += adding;
 
   const perks = Math.floor(this.perkMonthCount / 3);