Glossary
MRR (monthly recurring revenue)
Predictable subscription revenue that arrives every month.
A hundred customers paying $50 a month is $5,000 MRR. Its value is predictability: you can hire, spend and plan against it in a way one-off sales never allow.
Recurring revenue is also why software businesses sell for multiples of annual revenue while service businesses sell for multiples of profit. Buyers pay for predictability.
Where this matters
Micro-SaaS
Software & Digital
Build small software that solves one problem and charges monthly for it
- Capital
- Under $500
- First income
- Months
- Risk
- Ceiling
- Uncapped
Paid Newsletter
Creator Economy
Charge a subscription for writing people cannot get anywhere else
- Capital
- $0
- First income
- Months
- Risk
- Ceiling
- Six figures