← DictionaryRecurring Revenue
also called MRR, ARR
Income that repeats predictably on a subscription or retainer basis.
Money that arrives again next month without a new sale.
What It Is
Recurring Revenue sits on the Business side of the work, in the Finance area. Stated plainly: income that repeats predictably on a subscription or retainer basis.
It is something measured and compared over time, so one reading in isolation tells you almost nothing. That is the version worth keeping, because it survives contact with a real project.
How It's Used
In practice, Recurring Revenue shows up in commercial decisions, pricing conversations and how the business runs. It normally appears alongside Retainer, Churn and Lifetime Value. The practical test is whether it is measured the same way each period, against something.
Why It Matters
Recurring Revenue is one of those items that only becomes visible when it is missing. When it is unclear, margin leaks in places nobody is looking. Clarity here removes a surprising amount of downstream argument.
Picture a speedometer. It tells you how fast, not whether you are going the right way. Money that arrives again next month without a new sale.
Termshift™
How the meaning shifts depending on who is using it, and where.
Professionally, Recurring Revenue carries the narrow meaning: income that repeats predictably on a subscription or retainer basis.
Explained to someone with no marketing background, Recurring Revenue is money that arrives again next month without a new sale.
The Bottom Line
Treat Recurring Revenue as a decision, not a description. Money that arrives again next month without a new sale.