Understanding One Time Payment MRR
Subscription-based businesses have been on the rise in recent years, and for good reason. With a recurring revenue model, businesses can count on a steady stream of income and predict their future growth with greater accuracy. However, what happens when a customer wants to make a one-time payment that doesn’t fit neatly into a monthly subscription?
That’s where the concept of “One Time Payment MRR” comes in. MRR, or Monthly Recurring Revenue, is a key metric for subscription businesses, but it only accounts for recurring payments. One-time payments can add a significant boost to a business’s revenue, but SaaS owners often overlook or do not account for in MRR calculations.
Radix: The Solution for One Time Payment MRR
Radix is a new platform that provides businesses with the tools they need to calculate and track their MRR accurately, even when they receive one-time payments.
With Radix’s new feature, businesses can prorate one-time payments based on the length of time the customer will receive the service, and add them to their MRR metric.
This means that businesses can now accurately track the total value of all payments, both recurring and one-time, and make more informed decisions about their growth and revenue.
How Radix Works: A Step-by-Step Guide
Step 1: Selecting the One-Time Payments
Clients need to first manually add any one-time payments they have received along with the number of months that the customer will receive the service. Radix will use this information to prorate the payment.
Step 2: Prorating One-Time Payments
With the information provided by the client, Radix will prorate the one-time payment based on the length of time the customer will receive the service. This means that the value of the payment will be divided evenly over the number of months that the customer will receive the service.
For example, if a customer makes a one-time payment of $2,003.70 for a 24-month service, the monthly value of the payment would be $83.49 ($2,003.70 / 24 months).
Step 3: Adding One-Time Payments to MRR
Radix will then automatically add the prorated value of the one-time payment to the MRR metric. This will give businesses a complete and accurate picture of their monthly recurring revenue, including the impact of any one-time payments.
With this step-by-step process, our users can easily track and calculate the impact of one-time payments on their MRR without the need for manual calculations or effort.
Benefits of One Time Payment MRR Proration:
- Increased Revenue: By accurately tracking and prorating one-time payments, businesses can increase their revenue and avoid losses.
- Improved Customer Experience: With Radix’s One Time Payment MRR Proration, businesses can provide a better customer experience by avoiding confusion and overcharging customers.
- Time-Saving: The automatic calculation (Once client enters the input data) and proration of one-time payments can save businesses time and effort in manual calculation and avoiding errors.
Why Choose Radix to Track Your One-Time Payments
While Stripe and PayPal are both popular payment platforms, neither offers a solution for accurately tracking one-time payments in the MRR metric (No more than 12 months). Radix, on the other hand, is specifically designed to help subscription businesses track and calculate their MRR accurately, including the impact of one-time payments.
By choosing Radix, businesses can save time and effort in manually categorizing payments and calculating the impact of one-time payments on their MRR. They can also make more informed decisions about their revenue and growth, as they’ll have a complete and accurate picture of all their payments, both recurring and one-time.
In conclusion, Radix’s One Time Payment MRR Proration is a game-changer for businesses looking to accurately track their revenue from one-time payments. With this new feature, businesses can increase their revenue, improve customer experience, and save time. It is a must-have tool for businesses looking to stay ahead of the competition and provide their customers with a seamless payment experience.
Get started with Radix today and experience the power of One Time Payment MRR Proration!