Multi year contract and RevShart business model.

[IZabarsky]

Hey friends
I have 2 questions that I would love to discuss with you and hear how you approach this problem:
1. Multi-year transactions - we sell a product with a contract to the customer that changes from year to year (tier-based), how do you manage the booking of this type of contract?
2. Revshare transactions - as part of our business models we have a rev-share model in which the profit distribution is divided between us and the customer based on the use of the product for example - for each transaction on the customer's website we receive 30% and he is 70%, let's say we have a transaction with a profit potential of 1m (based on the client's hypothesis) but in practice, the transaction revenues will arrive every month based on the use of the product, how do you track the booking in this type of transaction in Habspot without distorting the annual forecasts and actual vs KPIs?

[IZabarsky]

Hey friends
I have 2 questions that I would love to discuss with you and hear how you approach this problem:
1. Multi-year transactions - we sell a product with a contract to the customer that changes from year to year (tier-based), how do you manage the booking of this type of contract?
2. Revshare transactions - as part of our business models we have a rev-share model in which the profit distribution is divided between us and the customer based on the use of the product for example - for each transaction on the customer's website we receive 30% and he is 70%, let's say we have a transaction with a profit potential of 1m (based on the client's hypothesis) but in practice, the transaction revenues will arrive every month based on the use of the product, how do you track the booking in this type of transaction in Habspot without distorting the annual forecasts and actual vs KPIs?

[BérangèreL]

Hi @IZabarsky,

Thank you for reaching out to the Community!

1. Regarding the multi-year transactions, I found similar threads that might help you:
- The solution from @jolle on this post "Managing a scaling up multi-year opportunity"
- The solutions from @Trumeter and @Samantha_Alford on this post "How Approach Multi-Year Deals"

2. As for revshare transactions, here are similar threads that can maybe help you:
- The solutions from @Mike_Eastwood and @karstenkoehler on this post "Setting revenue share of deal value"
- The solutions from @Jnix284, @jolle and @danmoyle on this post "Revenue Shares in Hubspot"

Also, if anybody else has anything to add and/or share, please feel free to join in the conversation 🙂

I hope this helps!

Thank you and have a great day!

Best,
Bérangère

[danmoyle]

Thanks for the extra share @BérangèreL - what a great round up of resources!