Revenue example
Let’s say T. Pain started a music software company called Ternt, Inc. Ternt sells two types of software: music creation software and DJ software. It also sells services for continued education training on its software. Finally, it generates income from its partnership with a music streaming company that offers DJ software users access to licensed music.
Let’s gather new sales data from January 1 through March 31 to get started:
1. Core licensing revenue (new licenses sold)
Music creation software: 30,000 sold x $150 each = $4.5 million
DJ software: 20,000 sold x $100 each = $2 million
TOTAL = $6.5 million
2. Training revenue (new services customers)
5% of the customers who purchased the DJ software america phone number list this quarter also bought a five-hour training course. That’s 5,000 hours at $100 per hour.
TOTAL = $500,000
Now, let’s say Ternt, Inc. also received $500,000 in revenue this quarter from its partnership with the music streaming service. Because it is a revenue stream, partnership income is not included in new sales, so we don’t add it to the equation.
Here’s where we land: $6.5 million in new core licensing sales + $500,000 in new services = $7 million.
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