Royalty Model

For an activity such as (new) Product Design or Product Lifecycle Management (PLM), we prefer to work on the Royalty Model. Under this partnership model, the client organisation and we will agree on a percentage of product revenues that will accrue to us, during the lifecycle of the product. The baseline measurement, minimum achievement threshold, operating margin, and frequency of royalty payment, are some of the parameters that are specified in the agreement. The advantage of the Royalty Model, to the client organisation, is that the our fee is conditional on the success of the product. The quantum of royalty will depend on the our level of involvement in the contracted services.

Please note that a nominal fixed monthly retainership is charged as part of the Royalty Model, to ensure the client organisation's commitment to the risk-sharing strategy