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PSaaS Recurring Revenue(RR) Business Model

  • 7 Types of Recurring Revenue
  • Interlocking Recurring Revenue
  • High Quality / No Contract / Annual RR
  • < 1% Customer Attrition
  • 2x Company Growth
  • $0.25-$0.50/yr. per $1 Installed Equipment
  • 4 - 8x Margin > One Time Revenue Margin

  • Margin Over Time

  • 15 - 20x > Company Valuation

Typical PSaaS Recurring Revenue

SystemRevenueEquipmentRR 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.

Notes