Why we should switch from MRR to MRP

Hi Guys, After I saw some tweets discussing MRP, here is what I think about it.

There is no term MRP (Monthly Recurring Profit) in the business. We have had MRR (Monthly Recurring Revenue) for ages, but there is a problem with MRR.

You can't tell the profit a company is earning from it. MRR tells the cash flow within the company, but a company also has expenses. So when we try to calculate the total profit a company is earning monthly it is much lower than the MRR which gets quite disappointing to the users or the buyers.

So what's the solution?

Switch to Monthly Recurring Profit (MRP)

Get a clear picture of the profit a company is earning after all the expenses like advertising, server cost, etc. This way when a buyer looks at the listings of products and gets an entire picture of what the company is doing, how can the buyer improves the matrics and make strategies.

---

I've developed SecondFounder.com where you can easily buy/sell your side projects and implemented an option to switch between MRR and MRP so the buyer gets the picture of what they are buying.

Let me know if you have some suggestions or feedback!