Common Events that Affect Monthly Recurring Revenue (MRR) Totals

Question

What events and changes impact my Monthly Recurring Revenue (MRR) total?

Answer

The four major ways to change MRR are through new subscriptionsexpansionscontractions, and churn.

New Subscriptions

This occurs when a new or existing customer starts a new active subscription, or upgrades from a free subscription to a paid subscription.

Expansion

This occurs when an existing paid subscription is upgraded or modified to increase its MRR. This can happen by adding or changing a plan, increasing the quantity, or lowering a discount.

Contractions

This occurs when an existing paid subscription is downgraded or modified to decrease its MRR (to a non-zero amount). This can happen by removing or changing a plan, lowering the quantity, or increasing a discount.

Churn

This occurs when an existing paid subscription is either canceled, downgraded to a free subscription, or becomes delinquent.

Additional Information

For recommendations on how to use Billing to increase your MRR, see Ways to grow your Monthly Recurring Revenue (MRR).