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Business Measuring Company Performance with MRR, Churn and Lifetime Values

Posted by Fiona Battersby
Fiona Battersby
Courses Plus Student 3,463 Points

How do you measure MRR if the client spend is not a fixed fee or a fixed timeframe?

For example, if a customer buys a large expensive website one month, nothing for 5 months and then some ad-hoc pieces of collateral at varied prices the next 3 months.

1 Answer

Jim Rising
Jim Rising
4,900 Points
Jim Rising
Jim Rising
4,900 Points

This isn't really MRR, because it is essentially non-recurring. MRR is really intended for products or services that have a defined price and recurring term. Web Hosting for example, where you pay monthly or annual ... and sometimes quarterly.

Jim Rising
Jim Rising
4,900 Points

If you are wanting MRR, You could use monthly retainers with a fixed monthly fee, or offer services that provide additional value like monthly SEO reporting, website monitoring, security updates, etc... This is how our company captures MRR opportunities.