Monthly Recurring Revenue

Not a triple vaccine for young children (which is measles, mumps, rubella) but your Monthly Recurring Revenue. This is a useful indicator for anyone who wants to develop a recurring income business model in their business to help cash flow.

If you sell memberships, maintenance fees, hosting fees, subscriptions, this is a very important number for you, as you want to increase it.

Recently, I helped a client to set his MRR target as enough to pay all his bills, so he could know that he’d have enough money coming in from this side of his business to cover payroll, office rent, his own software subscriptions etc.

It worked wonders as an incentive to grow this side of the business as what my client was working for was cash flow security, so he could know that his bills were going to be paid each month without the headache of having to chase clients for payment.

MRR is often used with DD – direct debits or regular payments on your clients’ debit or credit cards.

What’s your MRR? Can you increase it as a proportion of your overall revenue?

Other articles about MRR, monthly recurring revenue, and retainers

I’ve also written more about MRR and the recurring income business model.  Take a look…

I also absolutely love this book by John Warrilow, which gives some great ideas for increasing MRR in even the most traditional of businesses.  John’s book has been very inspirational to me, and I’ve used his ideas a lot with my clients.  The Automatic Customer by John Warrilow.

Photo of the Forth Bridge – David Mckelvey