Imagine this: You own a martial arts studio. You've spent years building a strong community, refining your programs, and watching students transform from white belts to black belts under your guidance. Every month, students show up, parents pay their dues, and business seems steady. But if someone asked you right now, "What’s your monthly recurring revenue?"—would you have an answer?
For many studio owners, the answer is no. And that’s a problem.
The power of knowing your numbers
Let’s say your martial arts studio has 100 active members, each paying $150 per month. Simple math tells us that your MRR is $15,000. This number is more than just a statistic—it’s your financial heartbeat. It tells you exactly what’s coming in every month, allowing you to plan for expenses, growth, and potential challenges.
Without tracking MRR, you’re navigating in the dark. You might think your studio is thriving, but are you growing, shrinking, or staying flat? Are cancellations outpacing new sign-ups? Can you afford to hire another instructor, invest in new equipment, or expand to a second location? These are questions only knowing your MRR can answer.
Seeing the trends: What MRR tells you over time
Tracking MRR on a month-to-month basis reveals patterns. Imagine looking at your numbers over the past six months:
- June: $15,000
- July: $15,500
- August: $14,800
- September: $15,200
- October: $16,000
- November: $15,700
A small fluctuation in revenue is normal, but let’s say you notice a consistent dip every August. Why? Perhaps families are on vacation. If you see that trend in your MRR data, you can plan ahead—maybe offering a summer camp or discounting private lessons to offset the seasonal decline.
On the flip side, if your MRR is climbing, you can see what’s working. Did a new marketing campaign bring in more members? Are your referral programs gaining traction? Instead of guessing, you’re making data-backed decisions.
Predicting the future with MRR
MRR isn’t just about looking at where you are—it helps you forecast where you’re going. If you’ve been consistently growing at 5% per month, that means next month you can reasonably expect:
$15,700 × 1.05 = $16,485
Now, imagine if that growth compounds over the next year. Suddenly, you’re at $25,000+ in MRR, just by keeping an eye on your numbers and making smart adjustments.
How MRR helps you make smarter business decisions
Understanding your MRR isn’t just about numbers—it’s about control. Let’s say you’re thinking of hiring another instructor to help with classes. That will cost you $3,500 per month in salary and benefits. If your MRR is at $15,000, does it make sense?
Maybe, maybe not. But if your MRR is growing steadily at 5% per month and you project it will be at $18,000 within six months, then hiring that instructor becomes a much smarter investment.
Similarly, if you’re considering expanding your studio or launching a second location, knowing your MRR (and tracking it over time) helps you make data-driven decisions rather than taking blind risks.
What’s a healthy MRR growth rate?
A successful studio should aim for at least 5-10% growth per month in MRR. If you’re consistently seeing 20%+ growth, you’re scaling at an excellent rate. But if your MRR is stagnant or declining, it’s a sign you need to focus on retention, pricing strategies, or customer acquisition.
Let’s say you’re adding 10 new members per month while losing 5 members per month. If your average membership is $150, that’s an MRR gain of $1,500 per month. But if you tweak your retention strategy and cut churn down to 2 lost members per month, you’re suddenly keeping an additional $450 per month, which adds up to $5,400 per year—all without bringing in a single extra student.
How to increase MRR
If your MRR isn’t growing as fast as you’d like, here are some strategies:
- Raise prices strategically – If you increase membership fees from $150 to $160 per month, that’s an instant $1,000 boost in MRR for a 100-member studio.
- Offer family and group memberships – Instead of just individual memberships, create family discounts that encourage parents and siblings to join.
- Upsell additional services – Private lessons, advanced workshops, or gear sales all add extra recurring revenue.
- Improve retention – Keeping members is cheaper than acquiring new ones. Focus on engagement, progress tracking, and incentives for long-term commitment.
- Run referral programs – A well-structured referral system can generate new sign-ups at a low cost.
How MyStudio helps you track and grow MRR
Manually tracking MRR can be a hassle, but MyStudio’s martial arts software analytics dashboard simplifies it. With real-time insights into memberships, add-ons, and trends, you get a clear view of your revenue streams—helping you make smarter business decisions.
Instead of guessing, you’ll know exactly how much revenue is coming in, what’s affecting your growth, and what adjustments you need to make. Whether you want to expand, optimize pricing, or simply run a more efficient studio, understanding MRR is the first step.
Final thoughts
Running a successful studio isn’t just about teaching great classes—it’s about understanding your numbers. MRR isn’t just another metric; it’s the foundation for growth, stability, and financial freedom.
If you’re not tracking it yet, now is the time to start. And if you want an easier way to do it, MyStudio is here to help.
If you need help understanding how your data can drive better business decisions, book a call with us today. Let’s work together to take your studio to the next level.
