What is Monthly Recurring Revenue (MRR)?

Monthly recurring revenue, or MRR, is a metric that measures the amount of money a company receives on a monthly basis from its recurring revenue streams. This figure excludes one-time or non-recurring payments, such as customer setup fees. MRR is an important metric for companies with subscription-based models because it provides insight into the growth of their business. For example, if a company's MRR is increasing month over month, it indicates that the company is adding more customers and/or upselling existing customers to higher-priced plans.

Some benefits of investing time and resources in MOFU activities include:

- Generating more qualified leads: By definition, MOFU activities are designed to target customers who are further along in the sales process and are therefore more likely to make a purchase.

- Nurturing relationships with potential customers: MOFU activities help sales representatives build relationships with potential customers and nurture those relationships over time.

- Increasing conversion rates: By engaging potential customers in MOFU activities, sales representatives can increase the likelihood that they will convert into paying customers.

- Closing more sales: Ultimately, the goal of MOFU activities is to close more sales and generate revenue for the company.

Sales representatives who invest time and resources in MOFU activities can reap a number of benefits that will help them close more sales and generate revenue for their company.

There are three different types of MRR:

1. New MRR: This is revenue generated from new customers or expansion revenue from existing customers.

2. Expansion MRR: This is revenue generated from upsells or cross-sells to existing customers.

3. Churn MRR: This is revenue lost from customers who cancel their subscription or downgrade to a lower-priced plan.