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Recurr Research · Written for finance

What migration does to the P&L and the cash cycle

Finance owns the model. Three things move, and they move on different clocks: recurring margin, one-time working capital, and the fees that fund the program.

On a representative $5M store-billed book
$1.1M

Store fees a year — 22% of everything billed.

$513K

Held in a 48-day settlement queue — about 10% of ARR.

+16.6

Points of margin per migrated renewal, permanently.

Run these on your own book

Rates, not just absolutes, so the figures scale: fees track billings at the blended rate; held float tracks ARR at roughly a tenth. Web billing costs 3.6% + $0.30 to collect.

Three different clocks

Recurring marginRecognised from each migrated subscriber’s next renewal, and it does not decay. This is the line that compounds.
Working capitalA one-time release as the settlement queue drains from 48 days to T+2. It funds the migration; it is not margin, and it does not repeat.
Program feesIndexed to what actually migrates, billed monthly as you collect. Nothing is billed on a subscriber who stays on store billing.

The fee mechanics

PilotFrom $5,000, sized to the book, paid up front and credited in full against migration fees.
Migration5% of each payment a migrated subscriber makes in their first twelve months of web billing, then it retires.
Due pointEarned per successful move, billed monthly as payments are collected. No lump sum, no threshold.
Platform, afterIncluded for a migrated subscriber's first year on web. After that, 2% of successful payments on the connected web book.
What not to assume

Cash-flow release is not margin recovery. The drained queue can fund working capital through the migration, but reclaimed monthly margin alone does not cover the migration fee in the first months — the fee is front-loaded against a margin line that builds. Model them separately.

Neither figure is net of running billing. Dunning, tax, receipts, refunds and chargeback cover move with the billing and cost something wherever they sit.

What to model

Current store fee exposure, at your blended rate

Eligible base, not total base

Migration cases at 40%, 55% and 70%

Processing and tax on the chosen rail

Pilot and migration fee timing

Platform fee after the first-year window

The load-bearing input is the migration rate. It is the one number no model settles — a two-week pilot measures it on your own book against a matched holdout before anything scales.

Model it on your own book

Sixty seconds and two inputs. Store fee exposure, held float and recovery by migration rate, on your ARR and fee mix — in a form you can put in front of the board.

Run your numbers
Where this comes from

This is a one-page reading of the full method, written for your seat. The whole argument — the fee decomposition, the cash-flow release, the cohort framework, the guardrails and the commercial model — is published in the store-to-web subscriber migration playbook. Twenty-nine minutes, no gate.

2026 edition · Every figure computes from the same model the audit runs on your numbers. The worked example is a representative book: $5M store-billed ARR, 22% blended store fee, 50/50 plan mix at $10/mo and $100/yr. Web figures carry the payment rails only and do not net Stripe Tax.