Transaction Fees are generated when customers pay a fee for enabling or executing a transaction to the operator of a platform. This is often a mix of a fees, e.g. (1) a minimum fee to guarantee minimum revenues per month, (2) transactions fees as a percentage of the transaction volume and (3) transaction fees as a fixed amount for each transaction.

The Lean-Case Revenue Stream Transaction bundles a Transaction specific Revenue Model, the Revenue Forecast Model and revenue related cost models.

Check out the following example to understand the basics of a Transaction Revenue Model (see figure below):

  • a Business sells its Trx Services to 2 different customer types: Small Merchants and Large Merchants
  • a Small Merchant enters onto a 36 months contract, typically executing 100 trx per Month at an Average Trx Amount of $100. The Trx Volume, therefore, amounts to $10.000 per Month. The Merchant has to pay a Minimum Fee of $100 per month, plus a fixed Trx Fee of 1€ per trx amounting to another $100 (= 100 trx x  1€), plus a Trx Fee of 1% of the trx volume also amounting to $100  (= 10.000 trx volume x  1%)
  • a Large Merchant enters onto a 36 months contract, typically executing 300 trx per Month at an Average Trx Amount of $100. The Trx Volume, therefore, amounts to $30.000 per Month. The Merchant has to pay a Minimum Fee of $100 per month, plus a fixed Trx Fee of 1€ per trx amounting to another $300 (= 300 trx x  1€), plus a Trx Fee of 1% of the trx volume also amounting to $100  (= 10.000 trx volume x  1%)
  • Small Merchants make up 70% and large customers make up 30% of all new customers.
  • the Business adds 1 Sales Team per Month between Jan and Jun 2018
  • each Sales Team acquires 10 new customers per month (for the above example: 7 small merchants and 3 large merchants). 

 

Related Categories 

Follow the links below to dive into more detail on how to create a Service Revenue Stream: