Understanding different revenue share models helps you choose the best financial arrangement for your Las Vegas business.
What Revenue Share Means
The surcharge paid by the cardholder is split per the placement agreement. Interchange and processing fees are separate items in most statements.
Three Common Models
- Percentage share for the business owner based on monthly transaction count tiers
- Flat monthly rent mindful of seasonal volume
- Hybrid base rent plus smaller percentage share
Revenue Model Comparison
- Percentage share: Varies with traffic, high upside potential, lower risk to business owner
- Flat rent: High predictability, limited upside, depends on rent level
- Hybrid: Medium predictability and upside potential
Key Factors to Consider
Monthly foot traffic, weekend peaks, nearby ATM fees, expected withdrawal size, and hours. Transaction elasticity differs by venue category.
Share Change Frequency
Most operators reconcile monthly. Tiered schedules may adjust at preset thresholds. Shorter initial terms create flexibility for switching models later.