Understanding Monthly Minimum Fees (MMF)

The Monthly Minimum Fee (MMF) ensures you have consistent access to the Guesty platform and services, regardless of your booking volume. This fee acts as a baseline agreement in your contract, guaranteeing that you can always use our features to manage your business effectively.

How it works

The Monthly Minimum Fee operates on a simple principle based on your contract. Your contract sets a specific minimum monthly payment, for example, $200. At the end of each billing cycle, we compare your actual usage fees against this minimum.

If your usage fees are lower than the minimum, you pay the difference to reach that amount. If your usage is equal to or greater than the minimum, you simply pay your actual usage amount with no additional charges. We calculate and apply the fee on a month-by-month basis, so unused amounts don't roll over to the next month.

Locate the fee on invoices

We process the MMF adjustment on a separate invoice issued at the end of the billing month. This separate invoice only appears if your usage is below the threshold and includes the difference needed to meet your minimum commitment.

Adjust the fee

Your MMF is established in your contract. Contact your account manager to discuss your specific situation if you need to make adjustments.

Prorated listings

Prorated listings count toward the billing cycle they were added in, but the charge appears on the next month's invoice.

For example:

If you add a listing in early January, this prorated listing charge appears on the February invoice. However, this charge is included in the MMF calculation for January.

The charge description clearly indicates the relevant month (charged on January 15 - Jan 31). 

Prorations and split months

Discrepancies may occur in your MMF billing if you activate and deactivate a listing within the same billing month. 

We bill listings for a minimum of 30 days, even if they are active for a shorter period. If those 30 days cross into the next month, Guesty splits the revenue attribution between the two billing cycles.

For example:

If you activate a listing on January 14 and deactivate it on January 16, we bill the listing for the 30-day minimum, splitting the revenue attribution:

  • January MMF: Attributed from January 14 to January 31.
  • February MMF: Attributed from February 1 to February 14.

Calculation examples

Scenario 1: Usage below minimum

  • Your Monthly Minimum Fee: $200
  • Your actual usage for the month: $120
  • Total charge: $200 ($120 usage + $80 MMF difference)

Scenario  2: Usage above minimum

  • Your Monthly Minimum Fee: $200
  • Your actual usage for the month: $350
  • Total charge: $350 (Actual usage only)
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