Phase III deals are generally defined when the expected revenue in the first 48 months can reach over $5 million.
Phase II deals are generally defined when the expected revenue in the first 48 months can reach $500,000 to $5 million.
Specific deal types by different business models
- License deal: contract amount includes license fees and 48-month maintenance and consulting service fees
- MTWO contract for 60-month services include consulting
- Subscription services contract for 60 months
- YTWO contract #1: total deal amount includes a). transaction fees from supplier based on the transaction volume; b). consulting fees from clients. Minimum payments would be required if no transaction or transaction below the baseline
- YTWO contract #2: total deal amount includes a). a fixed fee from supplier; b). consulting fees from clients
- YTWO contract #3: e-commerce project order: total deal amount is service fee based on a percentage of orders
- Professional services contract
RIB has set the target of reaching the threshold of 100,000 contractually agreed users in fiscal year 2020.
A user is defined as someone who has been granted the right to use the software.
50% of the expected Phase II and III deal revenue needs to be contractual agreed by signing in case the revenue generating is success based or the contract renewal has to be performed before 48 months.