Wouldn't the size of the target market affect the
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Posted On: 03/12/2018 12:18:11 PM
Wouldn't the size of the target market affect the royalty percentage? I would expect the larger the market, the more generous the BP can be as they will be generating so much greater revenues.
If market is $100, I only want to give out a few dollars. If market is $1000, I can give out up to a couple of hundred and still be way ahead. At $100,000 I can give out even a bit more, and so on and so on.
If market is in the billions, I make so much I can't afford not to pay what the provider is demanding (Sure hope this one plays out).
Of course, the profit margin is the other main factor.
If market is $100, I only want to give out a few dollars. If market is $1000, I can give out up to a couple of hundred and still be way ahead. At $100,000 I can give out even a bit more, and so on and so on.
If market is in the billions, I make so much I can't afford not to pay what the provider is demanding (Sure hope this one plays out).
Of course, the profit margin is the other main factor.
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