Refunds

ProfitWell, generally speaking, ignores refunds.

With the purpose of MRR being a momentum metric, we're focused on events that are recurring. If you offer a customer a one-month full refund, we don't believe that should be classified as churn, and reactivation the next month— or, in the case of a partial refund: a downgrade, and upgrade the next month. It doesn't seem actionable to include these scenarios into your metrics.

Instead, the only exception in which we will include a refund into your MRR, is if you have an annual subscription, and you churn the subscription early (in other words, cancel this customer's subscription). The reason here is that you will no longer receive revenue from this user, and they're effectively churned.


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