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16 Comments

MRR is Dead, Long Live R!

  1. 12

    I appreciate the sentiment, but MRR and R aren't measuring the same thing.

    R gives you an insight into how a company has performed historically, but tells you close to nothing about how that company is performing today.

    MRR tells you little about historic performance, but is a useful snapshot of how the company is doing right now.

    Saying one is better than the other is like saying 'distance travelled' is a better way of measuring a marathon runner's success than 'speed' is.

    Both give useful, complementary insights.

    1. 2

      MRR is broken because it assumes every company is selling suscriptions. R is more representative.

    2. -1

      This comment has been voted down. Click to show.

  2. 6

    much ado about... nothing?

  3. 6

    Very true. I think that IH should add a "Revenue" in replacement to "Monthly Revenue" on products. 👍

    1. 2

      Having the option to report something like "Revenue to Date" instead of MRR is my #1 feature request on IH. Products like mine don't have MRR, they have total sales.

  4. 3

    Reading this has just made me feel at ease! thank you...

  5. 3

    Let's try repost this in Meta. I also would love an option for R. Not everyone sells subscriptions.

    1. 2

      +1. I think subscriptions go well with services that are consumed, but are bad for all other software.

  6. 2

    this is like comparing MPH and miles.

    1. 1

      Yes. Or even RPM vs Revolutions. Yes.

  7. 2

    Just was applying to TinySeed and all their questions were in MRR. I was like 😵😵😵

  8. 1

    I don't see how R is useful for anything. Not selling subscriptions? Use MR instead. No need to make it a big deal.

    1. 1

      Everyone asks "what's the MRR?" IndieHackers itself, here.... asks for MRR. but I feel weird filling in something that's not recurring.

  9. 13

    This comment was deleted a year ago.

    1. 0

      It's dead to me. So yes, it is personal brand building. And I did absolutely write it a bit too flippantly.
      Some more context: there's subscription fatigue setting in. Rollback of expenditures, ads and more conscious buying practices in a recession, cause recurring revenue to drop.

      I purposefully launched my project Better Sheets with a lifetime deal. NOT $5 or $10 a month.

      The revenue is not recurring and won't be. Indie hackers here, only has the ability to fill in MRR. I'd rather fill out Monthly Revenue. and make a clear note that it's not recurring, it's just a monthly average.

      We can get too complacent with language and I wanted to make the point that I'm not making MRR, and I'm surviving!

      I make R, monthly.

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