Investment
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From Compliance to Recurring Revenue: Our MRR/ARR Business Model

The transformation of compliance software to recurring revenue model in Türkiye, MRR/ARR strategy and EGEROBOT's sustainable SaaS growth approach.

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İsmail Murat Bayık
March 17, 2021
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From Compliance to Recurring Revenue: Our MRR/ARR Business Model

From Compliance to Recurring Revenue: Our MRR/ARR Business Model
From Compliance to Recurring Revenue: Our MRR/ARR Business Model
As technology entrepreneurship matures in Türkiye, some words in investor language are no longer just "floating terms" but have become a real filter: MRR, ARR, churn, NRR, CAC payback... Today, a VC investor in Türkiye is no longer convinced by just "the product is nice"; they want to see how the product is sold, how it's billed, with what systematic it grows, and most importantly, how repeatable its revenue is. For this reason, the real test of a SaaS company is not being able to make a sale once; it's being able to grow without having to make a new sale every month, every year. One of the strongest legs of EGEROBOT®'s investment thesis starts right here: Transforming a "mandatory" need like compliance into regular and predictable recurring revenue.

Compliance: Cannot Be Postponed, Repeats

The essence of compliance software is this: The customer has to do this work. Occupational health and safety, environmental regulations, quality processes, periodic control reports, training records, and audit trails... These are not things that are "postponable" according to companies' budgets. When postponed, the consequences are; non-conformity in audits, administrative penalties, risk of operation suspension, reputation loss, legal liability after work accidents, and much heavier financial consequences. Institutions' approach to compliance in Türkiye has professionalized noticeably in recent years. While the "just fill the file" mentality was more common before, today in holding structures and medium-large industrial companies, compliance has become both a management agenda and a measured performance criterion. This reality creates a quite valuable advantage for the SaaS model: Because demand is not cyclical, it's continuous. Continuous demand transforms into ARR with correct pricing and correct packaging.

Not Document, Operating System

An important distinction needs to be made here. When "compliance" is mentioned in Türkiye, many software ventures are actually trying to sell document management. However, institutions' real need is not just to store documents; it's to manage processes and produce evidence. If compliance is not conducted embedded in operations, the institution loses both time and reliability. For this reason, EGEROBOT®'s business model approach is based on treating compliance not as a "document work" but as an "operating system." The institution hires new personnel every month, assigns new training, enters new field observations, conducts audits, closes non-conformities, produces reports. As long as each of these activities leaves a trace in the system, compliance becomes manageable. The critical point here for investors is: A product with increasing usage frequency naturally reduces churn. A customer who uses the product every day doesn't think about canceling.

MRR/ARR: Predictable Growth

The reason the MRR/ARR model is valuable for investors is not just that it's "recurring revenue." The real reason is that this revenue is predictable and growth can be managed measurably. In Türkiye, growth in service businesses is generally limited by the number of people and number of projects. More revenue requires more team. In the SaaS model, however, more customers can be acquired with the same product, the same infrastructure. This creates the multiplier effect of investment. However, there are two fundamental realities that make SaaS scaling difficult in the Türkiye market: The length of corporate sales cycles and institutions' price/payment habits. Many institutions in Türkiye still act with the reflex of "let's buy a license, let's pay once." Behind this reflex lies a need for trust: If I cancel SaaS, does efficiency go away, does data go away, do I become dependent? What will reduce these objections in EGEROBOT®'s MRR/ARR approach is that the product not only produces a screen but produces a compliance standard and makes the institution's audit process safe. When the institution realizes that what it will lose when it leaves the platform is not just software but process integrity, subscription moves from being a "cost" to becoming a "guarantee."

Revenue Quality

Domestic investors in Türkiye, especially recently, are focusing more on this: revenue quality. That is, not "is there revenue?" but "how healthy is the revenue?" Compliance-focused SaaS has a big advantage here. Because sales motivation is often not the unit manager's personal preference; it's the institution's obligation. This obligation makes the budget continuous. Also, price flexibility in compliance products is greater compared to general CRM or project management tools. Because compliance work is "the must-have of business." This situation creates two important openings in EGEROBOT®'s revenue model: first, customer acquisition with basic modules; second, revenue increase per account through expansion between modules. Selling only the training module to an institution is the first step of the relationship that will begin with that institution. Then audit module, non-conformity-action management, health processes, periodic control report management come into play. Thus, ARR per customer grows. From an investor's perspective, this form of growth reduces growth cost. Because acquiring new customers is expensive; expanding in existing customers is cheaper.

Foreign Investor Perspective

From a foreign investor's perspective, MRR/ARR is an even more critical scale. Because the Türkiye market is seen as risky on its own by many funds; factors like currency, economic fluctuation, uncertainty in purchasing processes make investment decisions difficult. The strongest signal reducing these risks is regular subscription revenue. If ARR is growing and churn is under control, the company survives even if the market fluctuates. For this reason, EGEROBOT®'s from-compliance-to-recurring-revenue approach is actually an architecture that reduces Türkiye risk. Also, in regulated sectors, software usage periods are long. Once the customer sets up the right system, they don't easily change again. This situation both reduces churn and increases LTV in the long term. Many SaaS startups in Türkiye experience churn problems because products are in the "easily dispensable" category. Compliance software is not in this category. This also creates a strong confidence factor for investors.

Modular Pricing Strategy

Of course, for this model to be successful, the product's pricing and packaging strategy must be set up correctly. The biggest mistake in SaaS pricing in Türkiye is reducing the product's value to "per user." In compliance software, value often comes not from the number of users; but from the number of locations, risk profile, module scope, and the institution's structural complexity. For this reason, EGEROBOT®'s growth strategy aims to transform compliance into a modular and scalable offer structure according to the institution's needs, instead of selling it as a "single package." This approach lowers the barrier for customer acquisition while making revenue growth possible as it grows. Thus, MRR becomes not just fixed revenue but a "growing account."

Conclusion: Compliance = Sustainable Revenue

In conclusion, compliance is one of the strongest revenue engines for SaaS in Türkiye. Because this need cannot be postponed, repeats, and constantly requires evidence. EGEROBOT®'s approach is not just to manage compliance; but to transform it into a regular, auditable, and measurable operating system. When this transformation happens, software is no longer just a tool for the institution; it becomes compliance itself. At that moment, the MRR/ARR model shows its real value: not just a billed subscription, but a revenue stream that transforms into a long-term business partnership. For this reason, the opportunity EGEROBOT® offers to investors is not just investing in a growing software startup; it's becoming a partner in the regular revenue model of a permanent category leader in regulated sectors. As EGEROBOT®, we are ready to sit at the same table with our investors, discuss growth with transparent metrics, and carry this revenue model to a much stronger momentum with the right strategic partnership. Our door is open to investors; because we know that the right MRR/ARR model combined with the right investor is the strongest backbone of a big platform story that will emerge from Türkiye.

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