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12 Comments

Don't be amazed by MRR

Before entering the indie hacker world, I would always see how these gurus were posting about their 10-20-30 K dollars in monthly recurring revenue and I would be mind blown, as I though all this money went straight to the founder's pocket.

Well, the reality is that many online businesses have high expenses, and that MRR does not reflect the profit but the total earnings. I have seen how Pieter Levels and others post their expenses of AI projects, and in reality they might earn roughly 1K (in their bank account) from a $15K MRR project.

I myself experienced this after reaching my first $10K MRR and seeing that only 200 bucks are my monthy profits, but its still a big accomplishment for me as it can practically scale to infinity.

  1. 1

    It seems that these independent hacker are not making a lot of money, or those who are really making money do not advertise it on Twitter.

  2. 1

    Flashy numbers work well online.
    It's like the "I made $1m in 3 months" posts, not mentioning the 12 businesses over 5 years the person tried before.

  3. 1

    Do you mind saying what your expenses are that leave you with a 2% margin?

    1. 1

      Sure. The thing is that I am running an investment tool so most of the money goes to buying the assets (bitcoin) for the users. You can check it out at https://givebtc.tips/SubsCrypto

  4. 1

    That is surprising. $10K and you get $200? How?

    1. 1

      Yep. The thing is that I am running an investment tool so most of the money goes to buying the assets (bitcoin) for the users.

      1. 1

        This seems like a pretty niche reason for extremely low margins... doesn't apply to most SaaS

  5. 1

    Margins are a real thing!

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