Monthly Recurring Revenue (MRR)

What is Monthly Recurring Revenue (MRR)?

Monthly Recurring Revenue, or MRR, is a key metric for subscription-based businesses that shows the predictable and recurring revenue a company can expect to receive every month. It's the monthly equivalent of ARR. To calculate MRR, you simply add up the monthly subscription fees from all of your paying customers. It's a critical metric for tracking the growth and health of a SaaS business. In a partner program, tracking the MRR generated by partners is a great way to measure their ongoing contribution to the business.

Related Terms

Managed Service Provider (MSP)

What is Managed Service Provider (MSP)? A Managed Service Provider, or MSP, is a company that remotely manages a customer's IT infrastructure and/or end-user systems, typically on a proactive basis and under a subscription model. Instead of a business hiring its own IT staff, it can outsource its I

Margin

What is a Margin? In a sales context, margin refers to the difference between the price a partner sells a product for and the price they paid the vendor for it. It's the partner's profit on the sale. For example, if a reseller buys a software license from a vendor for $70 and sells it to the end cu

Market Development Funds (MDF)?

What are Market Development Funds (MDF)? Market Development Funds, or MDF, are funds that a vendor provides to its channel partners to help them with their local sales and marketing efforts. It's a form of co-operative marketing. A partner can apply for MDF to help pay for activities like hosting a

Market Leader

What is a Market Leader? A market leader is the company that has the largest market share in a particular industry. A market leader often has significant advantages, such as strong brand recognition, economies of scale, and the ability to set industry trends. Other companies in the market are often

Market Penetration

What is Market Penetration? Market penetration is a growth strategy where a company focuses on selling more of its existing products to its existing target market. It's about increasing your market share. Tactics for market penetration can include lowering prices, increasing marketing and promotion

Marketplace

What is a Marketplace? An online marketplace is an e-commerce site that connects buyers and sellers, but doesn't own the inventory itself. Think of platforms like Amazon, eBay, or the Apple App Store. These marketplaces provide the infrastructure for third-party sellers (including partners) to list