Mar 2, 2022 4:14:27 PM by: Jill Duran

Technology Integrators are encouraged to make sales that will generate monthly recurring revenue. But, what exactly does that mean? What is monthly recurring revenue?

Monthly recurring revenue or MRR, is also often referred to as recurring monthly revenue or RMR. And you can even find it referred to as simply recurring revenue or RR. Regardless of the exact wording or acronym, the primary meaning, when referring to recurring revenue is the idea that there is some known, fixed, revenue an integrator can expect to earn with certainty from the same customer, each and every month, for multiple years into the future.

From a sales perspective, with regard to revenue generation, integrators basically have two possible types of sales. Sales that customers pay for one time, or sales that customers pay for ongoing into the future. A system installation sale, also called a project sale, is a one-time sale. A break-fix visit or a time and materials repair call are also one-time sales.

By contrast, the sale of multiyear support contracts, maintenance agreements, monitoring services, managed services, and other termed agreements are common sales for which customers pay monthly under a multiyear commitment. These are the types of sales needed in order to create and benefit from monthly recurring revenue.

Learn more about recurring revenue here or check out the playbook for system integrators that provides a deeper dive into how to make the pivot to selling a service sales model and building monthly recurring revenue.

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technology as a service / monthly recurring revenue

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