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I think it's easier for people to rationalise a simple cut of each sale rather than a fee for each "unique" installation. In the first case you can calculate th

by daemin 3y ago

I think it's easier for people to rationalise a simple cut of each sale rather than a fee for each "unique" installation. In the first case you can calculate that percentage easily in a spreadsheet and account for it in your business. In the second case it's totally unknown how to budget for. Should you assume 1, 2, 5 installs per purchase? How much of your revenue does that account for? People would rather have a higher fee that is certain than a lower but uncertain fee (of course no fee would be best).

teamonkey 3y ago
It's difficult but you can certainly budget for some truly ridiculous scenarios. e.g. what happens if you get 20 MILLION installs in a single month? Answer: You pay $400k with a Pro licence, $200k for Enterprise. Which sucks if you are only bringing in 400k/yr revenue, but with 20M installs this is what you call 'a good problem to have.'