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GenericGatsby

05/05/20 3:49 AM

#2558 RE: GenericGatsby #2556

MJAM2020 posted the full breakdown in post 2299.

Revenue Share. After all Expenses have been paid, Operator and Customer will share all subscriber and revenue fees as follows: 30% to Operator and 70% to Customer (the Revenue Share). On receipt of $800,000 of Revenue Share by Operator, Revenue Share will be 25% to Operator and 75% to Customer. On receipt of $1,200,000 of Revenue Share by Operator, Revenue Share will be 20% to Operator and 80% to Customer. On receipt of $1,800,000 of Revenue Share by Operator, Revenue Share will be 15% to Operator and 85% to Customer. On receipt of $3,000,000 of Revenue Share by Operator, Revenue Share will be 10% to Operator and 90% to Customer. On receipt of $6,200,000 of Revenue Share by Operator, Revenue Share will be 5% to Operator and 95% to Customer. On receipt of $10,000,000 of Revenue Share by Operator, Revenue Share will be 4% to Operator and 96% to Customer. On receipt of $20,000,000 of Revenue Share by Operator, Revenue Share will be 3% to Operator and 97% to Customer. On receipt of $36,000,000 of Revenue Share by Operator, Revenue Share will be 2% to Operator and 98% to Customer. On receipt of $80,000,000 of Revenue Share by Operator, Revenue Share will be 1% to Operator and 99% to Customer.



"So they talk a big game and throw up some big numbers, but who knows if they ever even get there?"
Royal Personal Training wouldn't voluntarily give up those percentages if they were unsure that they could ever get there. They would have negotiated for Touchpoint to get a smaller portion if there was any doubt. It's why Touchpoint didn't get 40% or 50% of $200 million; they both are trying to get the best deal for themselves and they can only do that with accurate projections.