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Recurring VS Reoccurring Revenue

Name: Recurring VS Reoccurring Revenue
Uploaded: 2025-02-14T05:30:05+00:00
Duration: 20 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief explanatory video, the speaker distinguishes between recurring revenue—earned from membership or subscription models where customers pay…

14 Feb 2025 · 0 min

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0:20

In this brief explanatory video, the speaker distinguishes between recurring revenue—earned from membership or subscription models where customers pay continuously—and reoccurring revenue, which comes from repeat one‑off purchases such as buying a soda each month without a formal subscription. The speaker argues that the quality of a product or service can be measured by the proportion of customers who keep buying it over time, emphasizing the strategic goal of acquiring a customer once and then receiving payments from them for the rest of their lives.

Every quality business has recurring or reoccurring revenue. Recurring means some sort of membership or subscription. Reoccurring is like Coca-Cola. You buy some Coca-Cola this month and next month, even though you're not on a subscription. And so the quality of a service or product is dictated by the percentage of customers that want to buy it again and again and again. The idea is that you want to acquire a customer once and have them pay you for the rest of their lives.