3. Distributor Revenues
Why a revenue share model?
Putting it simply, FIOFRO Limited operate a Zero Capital Outlay service, which removes the barriers of trade for the client obtaining a platform and for the distributor making the sale, If we charged the market rate for our systems we would have to charge in the region of £500,000 per platform.
So, being an innovative company, who believe in the future of our business, the abilities of our distributors and the revenue potential of our systems, we went completely in the opposite direction and removed all of the capital outlay in favour or a lifetime revenue share propostition. This is where FIOFRO Limited invest heavily in our Licensed Distributors and their clients by absorbing all of the capital outlay costs while the client builds their business, their brand and their subscriber base.
What is the revenue share?
The client charges their users a subscription fee to access their platform, 25% of this turnover goes directly to FIOFRO, leaving the client with 75%. The Licensed Distributor negotiates with and agrees thier percentage with the client, so the amount you make from the turnover of each client platform is completely under your own control.
For example, many of our distributors negotaitae a 50-50 split with their clients in the first year, this means that FIOFRO get their none negotiable 25%, the Licensed Distributor gets 25% and the client gets 50% of the turnover to operate their state of the art platform.
So what does this mean in actual revenue in a Licensed Distributors business?
Lets say your client is running an online Advice Platform as laid out in the axample in the Online Advice Platforms section of this website and lets say we use the German example for health care / alternative medicines.
Example Platform 1;
In Germany alone around 60% of adults (48m) use some form of CAM. Now, taking that market size into account, the client charges a really low subscription fee to access their information and to get their questions answered, lets say €5.00 per month with a faster reply upgrade of €12.00 per month for example.
This target market is worth just over €240-million per month at the entry level and over €570-million per month at the higher level.
So if they only attracted 1% of people who want advice in this market to their advice centre, their monthly revenues could be between €2.4-million and €5.7-million per month.
If you as their Licensed Distributor went 50-50 with them, that Distributor would be making between €600,000 and €1.4-million per month.
OK, so this a massive market, but the internet is full of massive markets, it is all about finding the right client. It is almost impossible for us to speculate on the unknown but what we can say is that the above example is possible, it is all in your hands.