Recurring Revenue

Recurring revenue is the business models that I prefer. It has the benefits of being highly predictable over time, and reducing the stress of having no revenue at the beginning of a quarter unless you go out and make new bookings. The major disadvantage to a recurring revenue business model is that it starts slowly and will require more cash to get it going.

Please refer to these two blog posts that talk in detail about the recurring revenue business model:

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  • Joe

    Hi David,

    I am looking for a MRR model that will help me determine margins based on hardware, and perpetual licensing.  Do you know where I should look for that?

  • David Skok

    Joe, unfortunately I can’t help you there. I am not aware of any model like that. Sorry!

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    Normally a very small business will commonly need straightforward accountancy help and

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  • Radu Meghes

    Hi David,
    Any idea when this article will be finished? I am working on a SaaS startup and could really use some validation/guidance for my business model.

  • David Skok

    I have just completed it for you.

  • Radu Meghes

    This is awesome David. Thank you very much. I really appreciate the work you are doing in helping others learn how to approach the startup phase.

  • Adrien

    Hi David, I am scaling my company internationally and have to work on a new business plan. Would you have any framework” for a SaaS enterprise software business plan with international operations ? Thanks a lot.

  • David Skok

    Sadly I don’t have anything to help you there. However ask these guys:
    Best, David

  • Paul Braun

    Hi David,
    Wondering if you have any best practices for sales compensation models when you are selling both hardware and SaaS based subscriptions?

  • David Skok

    Hi Paul. I don’t for that specific situation. But a good group to talk to are The Bridge Group. You can see some of their work here: