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Unearned Revenue: What it is and What it Means for Subscription Businesses

Stax

The concept of unearned revenue can easily trip up SaaS companies that offer subscription services and products on a recurring basis. Unlike when selling ordinary products, you cannot recognize the revenue earned from a subscription all at once. This is important for subscription businesses due to recurring advance payments.

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The top 5 subscription payment services: how to choose the best

ProfitWell

Scheduled payments, aka recurring billing. Scheduled payments have become a core form of revenue collection. Of course, recurring payments vary depending on the business. As the subscription universe continues to expand, you can expect to see even more subscription payment plans. What are subscription payments?

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SaaS Balance Sheet Examples

Baremetrics

Accounts receivable includes the revenue that your company has recognized but not yet collected. As you receive payments for the services you’ve already provided, this account will decrease while your cash account will increase. These are typically items that are used to operate your business over the long term.

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Are You Counting Payments as Renewals?

Kellblog

Enterprise SaaS has drifted to a model where many, if not most, companies do multi-year contracts on annual payment terms. Buyers typically perform a thorough evaluation process before purchasing and are quite sure that the software will meet their needs when they deploy. How did we get here?

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New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals

Kellblog

Say you sign a three-year deal with a customer that ramps in payment structure: year 1 costs $1M, year 2 costs $2M, and year 3 costs $3M. the right for 1,000 people to use a SaaS service) – so the payment structure is purely financial in nature and not related to customer value. Equal Value: The Price-Ramped Deal.

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Rev Up Your Business with Revenue Intelligence: The Power of Deferred Revenue and Expansion Revenue

SmartKarrot

This is where revenue intelligence comes into play, helping companies to gain valuable insights into their revenue performance, identify growth opportunities, and drive profitability. In this blog, we will explore two key areas of revenue intelligence: deferred revenue and expansion revenue.

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Understanding Subscription Revenue

Baremetrics

These can be weekly, monthly, or annual payments. Before we get into the more complicated stuff, let’s consider the difference between earning revenue and collecting revenue. Subscription Pricing Models How to Get Subscription Pricing Right The Advantages of a Subscription Revenue Model 1. Table of Contents.