The revenue is recurring. Only a third of it happens without a decision.

Buyers pay a premium for revenue that arrives on its own, and most of what firms label recurring arrives because somebody chose to spend again.

By Steve 5 min read
Abstract bridge artwork for The revenue is recurring. Only a third of it happens without a decision.

A management pack that reports “78% recurring revenue” is describing four quite different things at once. Some of that money arrives because a contract renews silently and switching would be painful. Some arrives because a client re-signs after a conversation that could have gone the other way. Some arrives because the same customer habitually reorders. And some arrives because a good relationship produced another project this year, as it did last year. All four look identical in a revenue line. They are not remotely equivalent, and anyone valuing the business,…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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