Revenue #3 Redeem Tokens With Merchants
Last updated
Last updated
100 points = $1.
The commission rate from partner merchants can vary. A common range is 5-30%. TG Games takes an average of 10% commission rate for our model.
If the user redeems points for cash and spends it at a merchant's store, TG Games makes a commission. Since 100 points = $1, and TG Games makes a 10% commission, then for every $1 spent by the user, TG Games earns $0.10.
User's In-App Points: The user has 500 in-app points, which are equivalent to $5 in value. These points are used as a discount or currency to make a purchase at a partner merchant's store.
Total Purchase Value: The total value of the purchase at the merchant store is $50.
TG Games' Commission: TG Games has an agreement with the merchant to receive a 10% commission on the sales made through its platform. Therefore, on a $50 sale, TG Games would earn $5.
Merchant's Revenue: After paying the $5 commission to TG Games, the merchant is left with $45. However, since the user used $5 worth of points to make the purchase, the actual revenue for the merchant is $40.
User's Expense: The user redeems their 500 points (worth $5) and pays an additional $45 out of pocket to complete the purchase.
Here is the structured model:
Initial Purchase Value: $50
User Redeems: 500 points (worth $5)
User Pays Additional: $45
TG Games Commission (10%): $5
Merchant Receives: $50 - $5 (TG Games Commission) = $45
Net Merchant Revenue After Points Redeemed: $45 - $5 (User's Points Value) = $40
In summary, for a $50 purchase:
The user utilizes $5 worth of points and pays $45 cash.
TG Games earns a $5 commission.
The merchant receives $40 after the commission and points redemption.
Time Period
DAU
Daily Purchasing Users (if 1%)
Total Daily Purchase Value
Daily Commission Revenue
Monthly Commission Revenue
2025 Q1
40,000
400
$20,000
$2,000
$60,000
2025 Q4
100,000
1,000
$50,000
$5,000
$150,000
In-App Purchases (IAP)
Premium Subscription (Token/NFT Gating)
Quarter
Number of Staff
Monthly Salary Expense
Other Expenses*
Net Monthly Revenue
2024 Q1
Op x1, Dev x2, Game Dev x2
$27,000
$10,000
-$37,000
2024 Q2
Op x1, Dev x2, Game Dev x3, Marketing x1
$37,000
$16,000
-$11,500
2024 Q3-Q4
Op x1, BD x1, Dev x3, Game Dev x3 Marketing x1
$47,500
$16,000
-$7,500
2025 Q1-Q3
Op x2, BD x2, Dev x3, Game Dev x4, Marketing x1
$64,500
$23,000
$68,500
2025 Q4
Op x2, BD x2, Dev x4, Game Dev x4, Marketing x2
$74,000
$30,000
$271,000
Monthly Salary Expense
Operation Manager (Op): $6,000
Business Developer (BD): $5,500
Developer (Dev): $5,000
Game Developer: $5,500
Marketing Personnel: $4,500
2024 Q2 (As the company is starting up, expenses are estimated to be baseline):
Office Space and Utilities: $2,000
Cloud Services and Hosting: $10,000
Legal and Administrative Fees: $3,000
Subscriptions and Memberships: $1,000
2025 Q1 (Anticipating significant growth):
Office Space and Utilities: $2,500 * 3 months = $7,500 (increment due to more space required)
Cloud Services and Hosting: $15,000 * 3 months = $45,000 (increased to support larger DAU)
Legal and Administrative Fees: $4,000 * 3 months = $12,000 (scaled up for increased operations)
Subscriptions and Memberships: $1,500 * 3 months = $4,500 (additional tools and services needed)
2025 Q4 (Preparing for further scaling):
Office Space and Utilities: $3,000 * 3 months = $9,000
Cloud Services and Hosting: $20,000 * 3 months = $60,000
Legal and Administrative Fees: $5,000 * 3 months = $15,000
Subscriptions and Memberships: $2,000 * 3 months = $6,000