MAX MRR: YOUR GROWTH CEILING

Summary from the TLDR Founders newsletter

Churn rate literally sets your maximum company size - divide new MRR by churn to see your ceiling. Buffer discovered this brutally: at 6% churn and $8,400 new MRR monthly, it was mathematically capped at $140k forever. Even tripling marketing couldn't help because exponential churn always catches linear growth. When COVID pushed churn to 7%, revenue crashed 35% overnight. Here's the magic: cutting churn from 6% to 3% doubles your ceiling instantly. Buffer finally grasped this, reduced churn, and growth exploded.