What performance pricing is
A percentage fee Recurr earns when a subscriber converts on a specific motion. It is not a recurring platform fee — the platform fee (3.5%, flat) is separate and applies to every web-billed dollar. Where performance pricing applies, two facts hold:- The fee is per converted subscriber, not per transaction. A subscriber who migrates or wins back generates one performance-fee balance — accrued once at the conversion event.
- The fee is earned at conversion, deducted across the 12 months that follow. For monthly subscriptions, the fee is taken out of each of the next 12 monthly settlements proportionally. For annual subscriptions, the fee is taken in full at the first annual settlement.
Where it applies
| Motion | Rate | Trigger |
|---|---|---|
| Migration | 2.5% | Subscriber moves off store rails to web on a migration wave |
| Winbacks | 10% | Churned subscriber re-acquired via Recurr’s winback motion |
| Annual nudges | 10% | Monthly subscriber converts to annual via Recurr’s nudge |
| Cancel deflections | 10% | Subscriber retains via Recurr’s pre-cancel save flow (Waitlist — not yet available) |
Settlement mechanic
When a subscriber converts, the performance fee balance is calculated asrate × converted_sub_annualised_revenue. That balance is then drawn down across the next 12 months of settlement payments.
- Monthly subscriptions — the balance is deducted from each of the next 12 monthly settlements, prorated. Each Stripe charge shows the platform fee (3.5%) and the performance fee draw as separate
application_feeline items. - Annual subscriptions — the full balance is deducted at the first annual settlement. There’s only one charge in the 12-month window, so there’s no need to spread.
Void on churn
If a subscriber churns within the 12-month performance window, the unpaid balance on that subscriber is voided. Recurr only earns the fee on the months the subscriber actually pays.- A migrated subscriber who churns in month 6 → Recurr earns the first 6 months of the migration performance fee; months 7–12 are voided.
- An annual subscriber who refunds → the entire performance fee is voided (since no settlement occurs).
Why this shape
- Alignment with retention. Recurr earns on subscribers who actually keep paying, not subscribers who churn shortly after the conversion event.
- No subscriber-acquisition risk for the customer. The customer pays only on conversions Recurr causes; failed motion attempts don’t generate fee balances.
- Cash-flow neutrality. Performance fees are deducted at settlement alongside the platform fee, not invoiced separately. There’s no separate AP cycle for the customer to manage.
Modeling exposure
Because unpaid balances void on churn, the CFO’s question shifts from “how do I model variance” to “what’s the maximum exposure if every migrated subscriber retains?” The cohort-level ceiling is straightforward to compute. For a migration cohort sized at conversion ARR:| Cohort conversion ARR | Migration perf fee ceiling (2.5%) | Realistic at 80% Y1 retention |
|---|---|---|
| $100,000 | $2,500 | ~$2,250 |
| $500,000 | $12,500 | ~$11,250 |
| $1,000,000 | $25,000 | ~$22,500 |
| $5,000,000 | $125,000 | ~$112,500 |
What performance pricing doesn’t apply to
- Organic web subscribers — anyone who signs up directly on web without going through a Recurr-driven motion. The platform fee applies; performance pricing does not.
- Existing app-store subscribers who don’t migrate — they stay on store rails, untouched, and are re-approached in later quarterly waves. No Recurr fee applies while they remain on store billing.
- Trial users who never convert — the conversion event itself triggers the fee. No trial → no conversion → no fee.