# Recurring Revenue Model

> A recurring revenue model is a business model where customers pay at regular intervals for ongoing access to a product or service, creating predictable and compounding income.

- **URL**: https://dodopayments.com/glossary/recurring-revenue-model

---

## What is Recurring Revenue Model?

A recurring revenue model is a business structure where customers pay a regular, ongoing fee for access to a product or service. This is the foundation of the SaaS industry and is typically billed on a monthly or annual basis.

### Why It Matters

- It provides a predictable and stable source of income, making it easier for businesses to plan and invest.

- Recurring revenue models align the interests of the company and the customer around long-term value delivery.

- They are highly valued by investors due to the consistency and scalability of the revenue stream.