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Commercial Models and Revenue Share

This document describes high-level commercial arrangements for partners in the ConnectSoft Partner Program. It is written for partners and ConnectSoft team members discussing commercial terms.

Commercial arrangements vary by partner level, engagement type, and revenue model. This document provides conceptual frameworks—actual numbers are negotiated per partner agreement.

Note

This document provides conceptual commercial frameworks. Actual pricing, revenue share percentages, and commercial terms are negotiated per partner agreement and are confidential.

Engagement Types

Type 1: Partner Leads + Delivers

Description: - Partner identifies and qualifies customer - Partner delivers solution using Factory/platforms - ConnectSoft provides tools, training, and support - Revenue share on delivered projects

Commercial Model: - Partner receives majority of project revenue - ConnectSoft receives platform/Factory usage fees - Revenue share on recurring subscriptions (if applicable)

Use When: - Partner has strong customer relationships - Partner manages full project lifecycle - Partner owns customer relationship

Type 2: ConnectSoft Leads, Partner Delivers

Description: - ConnectSoft identifies and qualifies customer - Partner delivers solution using Factory/platforms - ConnectSoft manages customer relationship - Partner receives delivery fees

Commercial Model: - Partner receives fixed delivery fees or percentage - ConnectSoft receives platform/Factory usage fees - ConnectSoft owns customer relationship

Use When: - ConnectSoft has customer relationship - Partner provides specialized delivery expertise - Partner complements ConnectSoft capabilities

Type 3: Joint Delivery

Description: - ConnectSoft and partner collaborate on delivery - Shared responsibility for project success - Joint customer management - Shared revenue and risk

Commercial Model: - Revenue shared based on contribution - Shared platform/Factory usage fees - Joint customer relationship

Use When: - Complex projects requiring both capabilities - Strategic customer relationships - Long-term partnerships

Revenue Share Models

Model 1: Project-Based Revenue Share

Structure: - Partner receives percentage of project revenue - ConnectSoft receives platform/Factory usage fees - Revenue share varies by partner level and project type

Example Scenarios: - Small project: Partner 70%, ConnectSoft 30% - Medium project: Partner 75%, ConnectSoft 25% - Large project: Partner 80%, ConnectSoft 20%

Note: Actual percentages are negotiated per partner agreement.

Model 2: Subscription Revenue Share

Structure: - Partner receives percentage of recurring subscription revenue - ConnectSoft receives platform/Factory usage fees - Revenue share continues for subscription lifetime

Example Scenarios: - Platform subscriptions: Partner 20-30% of subscription revenue - Factory subscriptions: Partner 15-25% of subscription revenue

Note: Actual percentages are negotiated per partner agreement.

Model 3: Referral Fees

Structure: - Partner receives fixed referral fee for qualified leads - Fee paid when customer signs agreement - Additional fees for successful delivery

Example Scenarios: - Qualified lead: Fixed referral fee - Signed agreement: Additional referral fee - Successful delivery: Success bonus

Note: Actual fees are negotiated per partner agreement.

Licensing vs Services

Factory/Platform License Components

What Partners Pay: - Factory usage fees (per run or subscription) - Platform subscription fees (per tenant or usage) - Template and library access fees (if applicable)

What Partners Receive: - Factory access and usage rights - Platform access and usage rights - Template and library access - Support and documentation

Partner Services Components

What Partners Charge: - Project delivery fees - Consulting fees - Support and maintenance fees - Custom development fees

What Partners Provide: - Project management - Requirements gathering - Factory run execution - Code delivery and testing - Customer support

Combined Model

Typical Structure: - Customer pays partner for services - Partner pays ConnectSoft for Factory/platform usage - Revenue share on recurring subscriptions - Referral fees for new customers

Example Scenarios

Scenario 1: Partner-Led SaaS Project

Setup: - Partner identifies customer - Partner delivers SaaS using Factory - Customer pays partner $100K for project - Customer pays $5K/month for platform subscriptions

Commercial Flow: - Partner receives \(100K project fee - Partner pays ConnectSoft \(20K for Factory/platform usage - Partner receives 25% of subscription revenue (\)1.25K/month) - ConnectSoft receives 75% of subscription revenue (\)3.75K/month)

Scenario 2: ConnectSoft-Led Platform Integration

Setup: - ConnectSoft identifies customer - Partner integrates Identity/Audit/Config platforms - Customer pays ConnectSoft $50K for integration - Customer pays $3K/month for platform subscriptions

Commercial Flow: - Partner receives \(20K delivery fee from ConnectSoft - ConnectSoft receives \(50K project fee from customer - Partner receives 20% of subscription revenue (\)600/month) - ConnectSoft receives 80% of subscription revenue (\)2.4K/month)

Scenario 3: Joint Delivery

Setup: - ConnectSoft and partner collaborate - Joint project delivery - Customer pays $150K for project - Customer pays $8K/month for subscriptions

Commercial Flow: - Revenue shared 60/40 (Partner/ConnectSoft) - Partner receives $90K project revenue - ConnectSoft receives $60K project revenue - Subscription revenue shared 30/70 (Partner/ConnectSoft) - Partner receives $2.4K/month - ConnectSoft receives $5.6K/month