License Revenue is earned by a company for allowing its copyrighted or patented material to be used by another company. Some examples of things that may be licensed include songs, sports team logos and technology. Often, License Revenues are connected with Maintenance Revenues (e.g. to maintain the license via upgrades) and Support Revenues (e.g. to support the customer in running its licensed product).
Learn how to
- Create a License Revenue Stream,
- Enter assumptions for your first Customer Type (Customer Contract) who is buying a license (e.g. SMB Customers),
- Save your assumptions
Create a License Revenue Stream by clicking the <+Add Revenue Stream> button and selecting the revenue model "License (Customer Contract)" from the dropdown Revenue Stream Type. Lean-Case creates the Revenue Stream with a License Revenue Template for the first Customer Type. Enter the description for your License Revenue Stream in the Widget Header (e.g. Software License Stream).
Enter Assumptions for your first Customer Type
Enter assumptions for the Customer Type in the Widget Template:
- Customer Type Description (e.g. Small Service Customer)
- Average Contract Duration in Months (set to 36 months default)
- License Fee - enter the - by default One-Time - license fee using Data Edit Group License Fee
- Maintenance Fee - enter the - by default Yearly - maintenance fee using Data Edit Group Maintenance Fee
- Support Fee - enter the - by default Monthly - maintenance fee using Data Edit Group Support Fee
- Billing Terms when the customer's invoice is created (at-the-start or at-the-end of the contract period) and
- Payment Terms to know time of invoice payment (cash-flow) (how many days after invoice creation customer must pay)
Save assumptions by clicking the <Save Stream> button.
By default, Lean-Case calculates one-time license, yearly maintenance and monthly support revenues for one customer which is contracted in the first months of your Lean-Case. Let's assume the customer buys a one-time license of € 10000, a maintenance fee of € 2000 and a support fee of € 500 , then this results in yearly revenues of $18000.
Data Groups provide maximum flexibility for capturing assumptions with varying values over time.
- a Data Series Group combines an input field with a Table Icon to enter varying values for a data series.
- a Data Edit Group combines three input fields (one of which being a Data Serie Group) in one column with an Edit-Mode Switch for automatic and manual editing.
Follow the links below to dive into more detail on how to create a Service Revenue Stream:
- Add a License Revenue Stream
- Edit inputs with varying values using flexible editing with Data Groups
- Define the Customer Mix by adding different Customer Types buying your services
- Define how many new customers you acquire by linking a Forecast Model
- Define how many customers renew their relation by defining Customer Churn (by default, Customer Churn for a Service Revenue Stream is set to 100%, i.e. no customers renew their relation)
- Add Revenue Related Cost linked to getting, keeping and growing customers, in particular