Revenue Share Model
Revenue share. How Nicango pays venue partners.
Nicango pays venue partners a monthly share of gross revenue. This page explains how vending revenue share models typically work, how Nicango approaches the question, and what a venue partner should expect from the qualification conversation.
The four ways vending companies pay venues.
Most vending operators use one of four payment models. Understanding which model a vending company is offering matters more than the specific percentage, because the percentage is calculated on a different number in each model.
01
Gross Revenue
Percentage of the total transaction amount, before any operator costs are subtracted. Verifiable by the venue. This is how Nicango pays.
02
Gross Profit
Percentage of transaction amount minus operator costs (cost of goods, fees, depreciation). The deductions are defined by the operator and not independently verifiable.
03
Net Profit
Percentage of what is left after all operator costs. Similar verification challenge to Gross Profit, with even more line items the operator controls.
04
Flat rent
Fixed monthly payment regardless of machine performance. Predictable but does not reward high-performing venues.
How Nicango pays.
Nicango pays venue partners a monthly share of gross revenue. The percentage is the same for every transaction at the machine, and the venue can independently verify the number by counting sales and applying the rate. There are no operator-defined deductions, no monthly debate about what counted as profit, and no dependence on the operator's accounting.
The specific percentage is determined during the qualification conversation. Different venue types, foot traffic patterns, and operational fit factors influence where in the range a placement lands. Nicango is also willing to discuss alternative structures (including Gross Profit models) with venues that specifically prefer them, though the default is Gross Revenue for the verification reason above.
Why Gross Revenue, not Gross Profit
Gross Profit in a vending operation is defined as transaction revenue minus the operator's costs. Those costs include cost of goods, credit card processing fees, software subscriptions, kiosk and payment system fees, machine depreciation allocations, cloud service fees, restocking labor, insurance allocations, and any other line items the operator chooses to recognize. Every one of those numbers is set by the operator.
The venue receiving a Gross Profit payout has no way to independently verify any of those deductions. They receive a check. They trust the operator's math.
A Gross Revenue model gives the venue a number they can count themselves. The transaction count from the machine, multiplied by the percentage, equals their share. Independent verification is built into the structure.
What the qualification call covers.
The revenue share conversation is part of the broader qualification call. The call typically covers:
- Confirmation the venue is licensed for 21-and-over service
- Venue type, foot traffic patterns, and operational fit assessment
- Placement location options within the venue
- Product mix recommendation based on the venue and crowd profile
- Revenue share percentage discussion
- Timeline from agreement to placement
- Any venue-specific compliance, insurance, or operational questions
The call is ten minutes for a quick fit check, longer if the operator wants to walk through specifics. No pressure on either side.
Want to know what your venue would earn?
Run rough numbers in the calculator on the homepage, or call to discuss specifics for your venue.
Related pages
Frequently asked.
How does Nicango pay venue partners?
Nicango pays venue partners a monthly share of gross revenue. The percentage is determined during the qualification conversation and is consistent for every transaction at the machine.
What is the difference between Gross Revenue and Gross Profit revenue share?
Gross Revenue share is calculated on the total transaction amount before any operator deductions. Gross Profit share is calculated on what is left after the operator subtracts costs like cost of goods, credit card processing, software fees, machine depreciation, and other line items that the operator defines and the venue cannot independently verify. Nicango pays on Gross Revenue.
Will Nicango do a Gross Profit revenue share if a venue prefers it?
Yes. The default is Gross Revenue because it is verifiable by the venue, but Nicango is willing to discuss alternative structures including Gross Profit during the qualification conversation.
Are there any fees the venue has to pay?
No. The venue pays nothing for the machine, installation, restocking, maintenance, insurance, or customer support. Nicango handles all of it.