An Enterprise SaaS company
This dynamic enterprise SaaS company faced a number of significant challenges and found a route to success through Enten’s innovative resourcing model. When it first engaged Enten, it was wrestling with an extensive product roadmap and competing priorities from:
- its overall competitive strategy;
- client demands; and
- sales team requests.
As a result of these tensions, continual trade-offs were being made on development priorities.
In an ideal world, the company would have liked to build a series of API integrations so it could close specific sales with several potential customers, but these were outside of the scope of the core product and so were difficult to justify. The MRR of the business at this point was £400k.
Enten solution
The business used Enten to obtain a development solution to the API integrations challenge. In order to get this work done:
- The developer provided a quote for the work of £100k.
- The business offered to pay 10% of this quote upfront in cash (£10k) and provide a revenue-share right to compensate the remaining 90% of the value of the work (£90k).
- The business and the developer agreed a post-delivery revenue-share threshold of £500k MRR.
- When the threshold at step 3 was hit post-delivery, the revenue-share bit as follows:
| £100k - £10k | = | £90k | revenue-share remainder |
| £500k x 24 | = | £12000 | Assumed revenue over revenue-share term |
| (£90k / £12000) x 100 | = | 0.75% | Revenue-share on MRR |
| £500k x 0.75% | = | £3.75k | Per month starting point for revenue-share in 1st month |
Deal benefits
- The business got built what it needed to get built for a fraction of the cost.
- The developer is participating in the ongoing success of the business and is on track to earn a multiple of the original quote over the revenue-share term.
- The business re-focused on its core challenges, knowing that this important ancillary piece was being taken care of.
- The developer gained a passive income stream.
- Enten’s automated revenue-share system is now managing and administering this ongoing relationship for both parties, allowing them to enjoy the results unhindered by other concerns.