The Mental Mapping from Annual to Monthly and Usage-Based SaaS Metrics
Kellblog
OCTOBER 13, 2022
A guy walks into a bar and orders a $17 Martini. Is it MRR (monthly recurring revenue)? The potentially surprising answer: maybe, and often yes. If he’s a tourist who happened to walk in, then no, it’s not MRR. If he’s lived here for two years and comes in every Thursday for a Martini, yes. He represents $68 of what I’d call empirical MRR [1].
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