How to spot vanity MRR in a program's brag post
Hot reminder: a SaaS bragging about MRR growth tells you nothing about whether YOU get paid. Decode it:
— Is it net or gross MRR? Gross hides churn entirely.
— New MRR vs expansion MRR. If growth is all expansion from existing accounts, new affiliate signups are flat.
— "Annualized" anything. ARR is MRR × 12 assuming nobody ever leaves. They always leave.
— Logo count vs revenue. 10,000 free users and 200 paying is a press release, not a market.
— Cohort retention curve. No curve published? Assume it dips hard at month 3.
The metrics they publish are chosen to look good. The metric you need (paying retention) is the one they skip.
Verdict: if the brag has no retention curve, the retention is the secret.
Stack Skeptic
@StackSkeptic
How to spot vanity MRR in a program's brag post
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