Recurring Revenue

What is Recurring Revenue?

Recurring revenue is the portion of a company’s revenue that is predictable, stable, and earned from ongoing customer subscriptions or repeat purchases. It provides a reliable income stream and helps businesses forecast future growth. Recurring revenue models are common in subscription-based businesses, software-as-a-service (SaaS) companies, and membership services.

Types of Recurring Revenue

• Subscription Fees: Regular payments made by customers for access to a product or service.
• Membership Fees: Recurring payments for membership programs or exclusive access.
• Renewal Contracts: Ongoing agreements for services, such as maintenance or support contracts.

Related Terms and Concepts

Subscription model, customer retention, lifetime value (LTV), revenue forecasting.