Business Model
How Metrognome makes money. The company is vertically integrated: it owns or leases the buildings, operates the studios inside them, and runs an online community on top. Revenue is real-estate-shaped at the bottom and software/community-shaped at the top.
The headline frame
"We operate as specialty self-storage, but with higher demand and less competition." — Paul Troiano, OnPoint Portfolio Executive Summary, April 2026
The closest comparable is self-storage REITs: per-door monthly rent, sticky tenants, 24/7 access, low operational touch. Metrognome's twist is purpose-built buildouts (soundproofing, HVAC, security, amenity build-outs) that competitors can't replicate from generic CRE, plus a community layer that drives 3+ year median tenure (~2× self-storage norms).
Revenue lines
Three product lines, three distinct monetization models.
1. Monthly studios (Lockouts) — the core
The dominant revenue line by far. Per-door monthly rent, month-to-month, soft contractual lock-in but high practical lock-in (member's gear is set up, drum kit is heavy, breaking down is expensive).
- Pricing: $300–500/mo per studio (varies by building + studio size + market rate).
- Splits well: $400/mo across a 4-piece band = $100/person/month.
- Standing rent escalator: every existing member receives a $5/mo per-studio rate increase on the calendar year, every year, regardless of current rate.
- Asking rate is updated as the market moves, and members transition to current asking upon renewal.
- Cancellation: 30 days written notice, M2M.
- Refunds: none, except as expressly stated for hourly cancellations.
Portfolio metrics (April 2026 snapshot, 9 stabilized PDX buildings):
| Metric | Value |
|---|---|
| Doors leased | 401 / 401 (100%) |
| Median tenure | 3+ years |
| Feb 2026 monthly rent collected | $145.8K |
| Annualized rent at current rates | $1.75M |
| Annual rent at today's market rates | $1.81M |
| Embedded annual upside | $55.5K (+3.1%) |
| Asking rate growth 2024 → 2025 | +4% |
| 2025 portfolio gross revenue | $1.74M |
| 2025 portfolio NOI | $555K |
The $55.5K upside realizes naturally as legacy members renew at current asking rates. No new leasing required.
Cross-link: docs/business/lockouts/, real-estate.md.
2. Hourly studios — launched 2026
Pay-per-session bookable rooms during published booking hours. New product line; retention/lifecycle not yet validated.
- Pricing: per-hour rate by studio (varies).
- Booking: online only, same-day permitted, 1-hour minimum. Building access begins 15 min before session.
- Cancellation: 24+ hours = full refund. Less than 24 hours or no-show = no refund.
- Overstays: billable, $25+ penalty, three-strike policy.
- No insurance for hourly members; assumption of risk on the member.
Hourly is a different ICP than monthly — different life stage, different commitment level, different displacement story. Don't conflate. See docs/marketing/icp.md "Hourly is a different game."
Cross-link: docs/business/hourly-reservations/.
3. SESHN — online community
Subscription access to the SESHN platform (built on Mighty Networks): expert/artist access, live sessions, programs/curriculum, content library, peer community.
- Pricing: subscription. Specific price points to be confirmed in post-draft review.
- Distinct membership — not bundled with studio access by default, though crossover programming (the "Physical Bridge") is part of the SESHN model.
- Channel: external app + web.
Cross-link: pillars.md.
Platform fees and ancillary revenue
Beyond room rent / hourly bookings / SESHN subs, the company earns smaller streams that matter for unit economics:
- Lockout platform fee — 0.7% of monthly lockout revenue accrues to the platform layer.
- Credit redemption fee — 10% of redeemed credit value accrues to the platform on redemption.
- Stripe fees — paid by MG (not pure pass-through). Affects margin on every transaction.
- Insurance pass-through — Safestor coverage is offered to monthly members; MG collects the premium and forwards to insurer, retaining a small administration portion. See [Membership Agreement Exhibit A].
- Vending and add-ons — gear, supplies, ancillary streams via Pillar 02 Studios. Material at scale, immaterial at current size.
- Late fees — apply after the 5th on monthly memberships.
Do not model MG as a pure pass-through. There are real platform-side margins on every flow.
Cost structure
Two dominant categories:
Real estate (Pillar 01 Development)
The largest fixed cost. Composition shifts over time:
- Leased buildings (Sparky Mack) — rent paid to landlord. Operating leverage capped by lease economics. Phasing out as leases convert to owned RE.
- Owned buildings (per-property SPE) — debt service + property tax + maintenance. Higher capex, much higher long-run yield.
- Build-out capex — soundproofing, HVAC, security, amenity buildouts. Funded via Fund & Capital Structure (SPE equity + debt).
- QOZF program — Opportunity Zone Funds for qualifying properties (e.g. MG10 Cherry City via 676 Church QOZF, MG11 via 720 Flanders QOZF). Capital-structure advantage.
The strategic move is migration leased → owned, recapturing the spread between lease cost and ownership economics on members who are already paying the same rent. See strategy.md.
Operations (Pillar 02 Studios + Platform)
- City Managers and field staff — per-location staffing cost, scales with location count not member count.
- Facility upkeep — utilities, cleaning, maintenance, supplies.
- Vendor stack — Stripe, Supabase, Vercel, UniFi, Twilio, Resend, etc. See
stack.md. - Marketing acquisition — paid Meta + organic + referral. See
docs/marketing/paid-meta.md. - Headcount — Platform shared services + leadership. Small team; current roster in
people.md.
Why the unit economics work
- Sticky tenancy. Median tenure 3+ years means CAC amortizes over 36+ months of $300–500/mo rent.
- Embedded rent escalator. $5/mo/door per year compounds; market-rate-on-renewal closes the gap to current asking. The pricing book never falls behind inflation, and existing customers don't churn over it (the alternatives are still worse).
- Purpose-built buildouts are defensible. Generic CRE doesn't convert quickly. First-mover scale in a market means new entrants face a real moat.
- Migration capability. When a leased building closes, MG can migrate members to a new owned building (e.g., MG2 + MG8 → 1720 NE 9th Irvington at 78% pre-leased day-one). Same members, same rent, owned instead of leased.
- Platform leverage. One PMS, one CRM, one access-control integration scales across all locations. Each new building drops marginal tech cost.
Why it's a real business and not just a real-estate play
- Demand exceeds supply at every building. 401/401 doors leased with active waitlists.
- The community layer (SESHN) plus local programming (Pillar 02 Engage) is what drives 2× self-storage tenure. Without it, this would be specialty self-storage. With it, members renew because of who they are inside the community, not just where their gear is.
- The CTO function and proprietary
.comPMS mean the operating model isn't bottlenecked by people-per-location. Scaling from 9 to 50 buildings doesn't 5× headcount in shared services.
Outstanding items
- [ ] SESHN current pricing and member count.
- [ ] Hourly revenue contribution as % of total (1H 2026).
- [ ] Total active membership count across monthly + hourly + SESHN.
- [ ] Any other revenue lines worth listing (sponsorships, partnerships, content licensing)?
- [ ] Capital position. The OnPoint deck is a debt conversation; equity capital state (active raises, QOZF status, runway) is owned by the CEO and to be confirmed before this section asserts numbers.