Software Licensing Glossary

A B C D E F I L M N O P R S T U W

Minimum Viable Product (MVP)

What is a Minimum Viable Product (MVP)?

A Minimum Viable Product (MVP) is the simplest form of a product that has just enough features to satisfy the needs of early users. The term is often used when launching a startup, where the MVP is supposed to be a time-effective way of investigating the product-market fit of the product. The main goal of an MVP is to collect early user feedback. After collecting feedback, an entrepreneur can enhance the product-market fit by adopting the product to the feedback suggestions.

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Monthly Recurring Revenue (MRR)

What is a Monthly Recurring Revenue (MRR)?

A Monthly Recurring Revenue (MRR) is a term within business. Companies using a subscription pricing model will get a Monthly Recurring Revenue if their customers pay the subscription fee on a monthly basis. For example, if you have 10 customers and the subscription fee is $5, the company will have an MRR of $50. The cash flow from January’s operations will be $50, and that amount will be the same for February if no customers churn or sign up.

Having an MRR is oftentimes beneficial for software products using the SaaS business model.

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