MRR is the monthly version of ARR — total predictable recurring revenue in a given month. It breaks down into New MRR (from new customers), Expansion MRR (upsells/upgrades), Churn MRR (cancellations), and Contraction MRR (downgrades). Tracking MRR movements gives you a real-time view of revenue health that ARR can obscure with its annual averaging.
For example, if you add $20K in new MRR, lose $5K to churn, and gain $3K from expansions, your net new MRR for the month is $18K — and your ARR grows by $216K annually.
We build marketing-to-MRR attribution models so clients know exactly which channels are driving net new revenue, not just leads.
Relevant Cactus Services
We implement Monthly Recurring Revenue (MRR) strategies for B2B tech startups every day. Book a free 30-minute call to get a concrete plan for your situation.
Book a free strategy call →Ideal Customer Profile (ICP)
Your ICP is the precise description of the company most likely to buy, stay, and expand.
Sales Development Representative (SDR)
An SDR is the outbound hunter on your sales team — their job is to generate qualified meetings, not close deals.
Business Development Representative (BDR)
A BDR is similar to an SDR but often focuses on larger, more strategic accounts or outbound into new markets rather than a defined territory.
Total Addressable Market (TAM)
TAM is the total revenue opportunity if you captured 100% of your target market.
Serviceable Addressable Market (SAM)
SAM is the portion of TAM you can actually reach with your current GTM motion.
Serviceable Obtainable Market (SOM)
SOM is the slice of SAM you can realistically capture in the next 12–24 months given your resources, competition, and execution capacity.