If you're a go to market leader in SaaS or a recurring revenue business, this is the model you need to understand. Revenue that repeats over time sounds simple, but tracking it accurately is anything but. In this video, we'll break down how we solve the most common challenges with reoccurring revenue tracking. What counts as reoccurring revenue, how to track it, how to spot it, how to spot growth, contraction, and churn. If you're considering RevOps as a service, this is how we give our partners full visibility into new, retained, and lost revenue, month over month for quarter over quarter. Hey. I'm Hagenfelfer, a data analyst at RevPartners. I build the recurring revenue tracking models our partners use to drive broad reporting, retention strategy, and expansion plays. Today, I'm walking you through the recurring revenue performance model, one of three core RPMs we use. Recurring revenue is the holy grail of SaaS and rev ops, but most teams struggle to measure it cleanly. Part of the issue is that not everything billed monthly is truly reoccurring. True reoccurring revenue is the same amount billed regular intervals over a committed period of time. For example, thousand dollars a month for twelve months. What's not reoccurring? A three month project billed monthly. That's a fixed term contract. $5 per seat. When seat count varies, that's usage based. Even if the amount is consistent, if the pricing is tied to usage or fixed period, it doesn't qualify. Before we jump in, let's take a quick revisit of what we covered in our last video, the non recurring revenue model. We looked at how to track volume conversion and revenue across sessions, leads, deals, and revenue collected. Perfect for businesses with one time transactions. In the recurring RPM model, we measure a few key points. Closed MRR or Monthly Recurring Revenue. This comes from sales. It's the amount of recurring revenue that was sold, which is live. Monthly Recurring Revenue invoiced or recognized, this comes from finance. It's what's actually been activated and billed. This transition from closed to live monthly recurring revenue marks the handoff sales to finance success. You don't count recurring revenue as live until onboarding is complete and billing begins. Once monthly recurring is live, we start tracking movement in three key areas. Upgrades, when customers increase their plan, say from 1,000 to 2,000 a month Downgrades, when customers reduce their plan, say from 1,000 to 500 a month and Churn, when customers cancel completely, 1,000 a month and they go to zero. These movements tell us how much net new and retained revenue we really have. We also track the cross sells monthly recurring revenue for customers adding entirely new products or services. At the end of the day, your goal is to get the calculation of net recurring revenue. This model helps go to market and CS team quantify expansion and contraction, align around real revenue impact, not just logo count, spot churn risk, and activation delays early. It's built to power everything from board decks to retention dashboards. This is the second of three core revenue performance models. While the non recurring model tracks one time purchase, this recurring model focuses on revenue that lives and breathes over time. Together they give RevOps teams full coverage of the most common go to market motions. Motions. If you're not separating closed revenue from live revenue and not tracking upgrades, downgrades, and churn, you don't have a clear picture of recurring performance. Use this model to get clean visibility into every dollar of recurring revenue and what's happening to it month over month or quarter over quarter. In our next video, we'll break down the formulas behind each revenue movement and how to report them accurately