💸Revenue #3 Redeem Tokens With Merchants

Redemption of Points

100 points = $1.

Commission from Merchants

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.

User Purchases with Merchants

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.

Example

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

Other Revenue

In-App Purchases (IAP)

Premium Subscription (Token/NFT Gating)

Expenses Projection

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