• Revenue sharing is possible and can be activated in just about any business deal. We believe that there are tens of thousands of potential use cases for the RevPay platform.

• We can help you architect and build out the most optimal revenue sharing arrangement for your business use case.

• RevPay was developed to solve a common business need.

• The greatest problem in operating a business always tends to be ups and downs of the cash flow cycle. In order to wait out the time when your products sell, you must invest heavily up front and await the revenues to repay the products you bought.

Let’s explore a hypothetical scenario about a sock store: “Matt’s Socks”

Matt buys socks from Wholesale Sock Supply for an average of $2/pair. He gets the $2/pair deal because he buys 100,000 or more at time. For smaller orders, wholesale prices go up to $3.15/pair. 

He doesn’t sell every pair of socks he buys right away because:

• They come in different sizes, not everyone buys the XXL or the XS

• The warmer socks tend not to sell in the spring and summer months.

  • So if warm socks are left over by April, they’ll end up on the shelves till October.

• People’s style desires change with the year’s and sometimes he has to mark down inventory to get rid of it once it’s gone out of fashion. 

Matt will buy 100,000 pairs of socks and spend $200,000. He sells socks for $5/pair to his customers. But he needs all of his sock shelves full stocked for all kinds of use cases to be a great sock store. He must pay rent every month to store the socks and meet his customers at the point of retail. He needs to pay for the socks whether he sells them or not no later than Day 60. 

In any 60-day period, Matt’s best months, he sells 20,000 pairs of socks and generates $100,000. No matter what, Matt constantly needs to buy more socks to fill the shelves and have the latest trends. He also does not have enough money to cover his wholesale purchase order. He’s got to either borrow the capital or invest his own money to create a good enough cash flow cycle where he pays his bills on time and pays his wholesaler on time as well. 

What if Matt did NOT have to do that? What if you could just consign the products your store sells and only pay your wholesaler when a sale actually happens?

In a business where you have to buy a lot of product and put it on your shelves, you as the business owner must lay out a lot of capital or borrow the funds needed in order to purchase the products you will be selling. Once you’ve paid for the products or arranged for fixed future payment terms, you are responsible for paying for all of the goods, regardless of whether or not you end up selling them. 

Now, imagine a different type of operation. 

• Your wholesale supplier consigns or lends you product at a predetermined cost per unit.

  • Consignment means you only pay the supplier when you’ve sold the product.

•  You put the product on your shelves and some of it flies off, while other products do not.

• Because you can avoid borrowing costs to pay the wholesale supplier, you end up working as a team to have the exact right mix of products on your shelves. 

• Matt’s Socks and Wholesale Sock Supply communicate every day to stay on track of the sales. 

• Wholesale Sock Supply sends Matt the latest and most fashionable pairs to generate customer attention. 

• Everyone gets paid at the same predetermined rate except now:

  • Matt no longer loses money on unsold inventory. When the price of unsold inventory is lowered, Matt’s Socks and Wholesale Sock Supply both have to lower their return.

  • But because everyone is working together, the process of purchasing becomes more efficient.

• Now imagine, the landlord doesn’t take the rent on the 1st of the month. But instead collects 15% of the revenue from every day’s sales. 

**Rather than conserving cash to be able to pay for wholesale goods every purchase order; or the rent to the landlord every month, the business owner can focus on making more sales! While RevPay pays out all of the stakeholder’s related to the landlord as well as the wholesale supplier.