Annual Recurring Revenue (ARR) is the revenue a company expects to receive annually from its customers, typically through subscription contracts, and it's important to ensure that this revenue is indeed recurring.

Aim for monthly or annual recurring revenue to protect your revenue during downturns, as it provides stability until contract renewal discussions.

Measuring revenue churn is critical for subscription-based businesses, as it helps you understand how many customers are leaving your service.

Your primary metric must capture whether your product provides recurring or enduring value to users, such as monthly recurring revenue for SaaS tools.

Revenue is a crucial metric for subscription businesses; track it through events like subscription upgrades to set growth goals.

Track the number of paying customers to measure growth; increasing customer acquisition rates can demonstrate to investors how quickly you're scaling.

You can derive monetization as a North Star metric by tracking monthly recurring revenue for subscription businesses or transaction values for e-commerce.

Net revenue retention measures the percentage of recurring revenue from current users, reflecting how well your company retains and expands its user base.

A good rule of thumb is to maintain a 5:1 ratio between new signed Annual Recurring Revenue (ARR) and total compensation for a salesperson, including commission.