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.
Learn how to
- Create a Transaction Revenue Stream,
- Enter assumptions for your first Customer Type (Customer Contract) who is buying your transaction service (e.g. Small Merchants),
- Save your assumptions
Create a Transaction Revenue Stream by clicking the <+Add Revenue Stream> button and selecting the revenue model "Transaction (Customer Contract)" from the dropdown Revenue Stream Type. Lean-Case creates the Revenue Stream with a Transaction Revenue Template for the first Customer Type. Enter the description for your Transaction Revenue Stream in the Widget Header (e.g. Payment Trx Revenues).
Enter Assumptions for your first Customer Type
Enter assumptions for the Customer Type in the Widget Template:
- Customer Type Description (e.g. Small Merchants)
- Average Contract Duration in Months - set to a default lengths of 36 months
- Trx Numbers - enter the number of monthly transactions a customer creates using Data Edit Group Trx Numbers
- Average Trx Amount - enter the average amount per transaction using Data Edit Group Average Trx Amount
- Minimum Fees - enter the minimum fee the customer has to pay on a periodical basis
- Billing and Payment Terms for Minimum Fees when the customer's invoice for the Minimim Fee is created and the number of days after the customer must pay the invoice
- Trx Fees in % and $ - - enter transaction fees in % (e.g. 1% per transaction) and/or transactions fees in $ (e.g. € 0.30 per transaction) and indicate if both Fees apply or only the higher of the two apply.
- Billing and Payment Terms for Trx Fees when the customer's invoice for the Trx Fee is created and the number of days after the customer must pay the invoice
Save assumptions by clicking the <Save Stream> button.
By default, Lean-Case calculates revenues for one customer which is contracted for 36 months. Let's assume the customer creates 100 trx per months at an averrage amount per transaction of €100 generating a transaction volume of €10000.
- A minimum fee of €100, creates monthly revenies of €100.
- If a trx fee of 1% per trx applies, this results in additional revenues of €100.
- If a trx fee of 1€ per trx applies, this results in additional revenues of €100.
This results in average monthly revenues of €300 per month.
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 Transaction 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