Hello Community Members!
We use the MRR report a lot. I think it’s great, for the most part. Maybe I have misunderstood something, but I think the upgrades, downgrades, new business, and renewals are slightly confusing.
By default, we make one-year deals, sometimes multi-year. But we can do an upsell mid-term. The question is, is it enough to create just three deals where:
- First is the new deal (e.g. 1000€ MRR, in Jan 2025)
- Second is a 500€ MRR upsell in July
- Third is a renewal that covers both?
Or, does the Upsell need to end the original deal as an upgrade mid-term, which would still result in just three deals, but more complicated math. Or, do we need two different renewal deals: one for the original deal and another for the upsell?
I would prefer the first option, since customers would only pay for the extra six months on the upsell, and the “original deal” would be valid until the end of the original term.
The confusing part comes with the report details where you can click, for example, the Existing Recurring Revenue amount from the table and it will show you all the deals that are included in the total number. When will it show the original deal, when an upsell, or renewal is strange to me. And it’s often hard to validate the numbers. Making sure those are correct.
We have quite a lot of data already in the system, and I want to know exactly how this works before starting to make any changes to the data.
If anyone has more experience and working examples on this, I’d like to learn more about it before changing the way we record deals in the system. Especially the mid-term upsells are in question here.
Thanks,
Mikko