Revenue Share Examples

How it works

Here are a few revenue share examples based on real examples from talking with Experts. At present, we’re seeing solo Experts building between 12 and 30 apps per year for clients. Agencies tend to do more volume.

 

Public Pro

Jane is a Certified Expert who built a customer-facing Public Pro app for Joe, a business owner.

 

Year 1

 

Service Fees

  • Jane charges $3000 for the initial app build. This is her fee and she sets and manages this outside of Glide.
  • Jane does this for 20 more clients throughout the year.
  • At the end of the year, Jane has $60,000 in services fees (20 x $3000)
 

Rev Share

  • Jane receives $6.40/mo in passive income from each of her clients’ Glide subscriptions (e.g., $32/mo * 20% = $6.40)
  • This applies to each of Jane’s 20 clients throughout the year.
  • At the end of the year, Glide gives Jane $128/mo in passive income from the subscription fees
 

Total

  • At the end of the year, Jane receives $60,000 from services and $128/mo in passive income
 

Year 2

 
  • Growth from year 1: let’s assume Jane’s existing 20 clients contract Jane to add a few more features and a few more apps. 3 new apps, and 10 new features. She decides to charge $500 per new feature for her service fees.
    • Current client services: 3*3000 (fee for initial app build) + 500 (feature build fee)*10 = $14,000
    • New passive income for current clients from Glide: 3 * $6.40/mo (32/mo * 20%) = $19.20/mo
    •  
  • In year 2, assume Jane get 30 new clients. Based on the initial $3,000 build fee that would equate to $90,000 in services fees, and $192/mo in passive income (30 apps * $6.40/mo revenue share).
    • Total passive income from Glide for year 1 and year 2: $128/mo + $19.20/mo (old clients) + $192mo (new clients) = $339.20/mo
    •  
  • At the end of year 2, Jane will have $104,000 in service fees for old and new clients and $339.20/mo in passive income
 

Year 3

 

Keep growing! You might need to hire your friends to help you keep up with the work :-)

 

Private Pro Only

Jane is a Certified Expert who built a Private Glide App for Joe Business Owner. Joe has 50 total employees, but in beginning, only 20 need access to the app.

 

Year 1: Getting off the ground

 
  • $3000 for the initial app build
  • Jane receives 20% of the $40/mo Private Pro subscription, $8/mo.
  • After 3 months, Joe wants a new feature that will allow his sales team to use the app. This feature requires 30 more users to access the app. This puts his total user count at 50, which is 30 over the default Private Pro Package. The 30 user overage will cost the client $60 a month.
    • Jane charges $500 for the new feature. She is currently receiving $8/mo in passive income from the initial 20 Private Pro user-subscription. The 30 user overage will give Jane an additional $12 a month in passive income (20% * (30 users *$2 per user) = $12). Total Glide revenue share is $20 per month for this app.
    •  
  • Later that year, Joe is loving Glide and adds a Glide Page. He requires all 50 users to be accessing the Glide Page.
    • Jane will charge her standard $3000 services fee for building the page
    • The passive income for the initial Glide Page (which includes 20 users) is $8/mo
    • Passive for additional users (30 user overage) $12/mo
    • The total passive income for this project is $20/mo
    •  
  • This brings the total for one client to $6500 in services fees and $40/mo in passive income.
  • Jane does this for 20 more clients (one page and one private app with user overages) throughout the year and has $130,000 in services fees and $800/month in passive income.
 

Year 2: Growing your business

 
  • Assume last year’s Private Pro clients add 3 more apps and 10 new features and they require each app to have 50 users.
    • Services from last year’s cohort: (3 apps * $3000) + (10 features * $500) = $14,000
    • Additional Passive income from last year’s cohort for users: 30 users * $2/user/mo * 3 apps * 20% = $36/mo
    • Additional passive income for apps/pages = $120 * 20% = $24/mo
    •  
  • Assuming Jane does the same amount of business in year 2 (21 new apps and pages with user overages) as she did on year 1 here would be here totals:
    • Services: $14,000 (year 2 for existing customer growth) + $130,000 = $144,000 in total
    • Passive income: $800/mo (last year’s) + $60/mo (growth from last year’s customers apps and users) + $800/mo (this year’s) = $1,680/mo
    •  
  • Jane makes a total of $144,000 in services and has $1,680/mo in passive income.
 

Year 3: Keep growing

 

At this point, you might want to hire some help! You can keep growing your consulting business and stacking your customers, passive income, and services revenue.

 

Takeaways

You will likely not sell just one or the other and have a mix of Pro and Private Pro, services fees will be different for different geographies, industries, customer segments, etc. We’re seeing service fees range from around $1500 to $5000 per App/Page right now.

 

You will also have churn. Not all customers will renew, and some projects will fail. The above models don’t account for churn.

 

Private Pro will be a more lucrative route, with scalable pricing and a focus on businesses, which have a higher willingness to pay, a defined user base, and more consistent needs. These customers might be harder to find, however, and you might need to do some marketing and sales to find them. We will try to send these leads your way later this year.