PSaaS Recurring Revenue(RR) Business Model
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7 Types of Recurring Revenue
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Interlocking Recurring Revenue
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High Quality / No Contract / Annual RR
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< 1% Customer Attrition
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2x Company Growth
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$0.25-$0.50/yr. per $1 Installed Equipment
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4 - 8x Margin > One Time Revenue Margin
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> Margin Over Time
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15 - 20x > Company Valuation
Typical PSaaS Recurring Revenue
| System | Revenue | Equipment | RR Range |
|---|---|---|---|
| Small | $10 K | $5 K | $1 - $3 K/Yr. |
| Medium | $50 K | $25 K | $3 - $10 K/Yr. |
| Large | $500 K | $250 K | $10 - $100 K/Yr. |
| Very Large | $2 M | $1 M | $100 - $500 K/Yr. |
| Enterprise | $10 M | $5 M | $0.5 - $2 M/Yr. |
| Global | $50 M | $25 M | $2 - $10 M/Yr. |