Module 4 · Chapter 7

Fees: Set-Up, Wholesale Price and the Monthly Minimum

A white label partner pays a set-up fee, then a fee for each employee paid through the app. A monthly minimum protects the software company, and an unpaid bill never switches the app off.

≈ 9 min read 8-question test

In this chapter

  • How the set-up fee and the fee for each employee work, and what Tressick keeps
  • Why a monthly minimum starts in month 7, and how it is worked out
  • How Larchpay may raise its prices, and why it may never switch the app off

7.1The fees in one paragraph

Tressick pays Larchpay in three ways, all set out in Schedule 2. A one-off fee pays for building Tressick Payroll. A monthly fee for each employee paid through the app is Larchpay's main income. From month 7, a monthly minimum means Tressick pays at least a fixed sum, however few End Customers it has.

Clause 8 sets the rules around the money: Larchpay invoices monthly, raises its prices only slowly, and never switches the app off over an unpaid bill.

Key point

Larchpay's income grows with Tressick's sales, but never falls below a floor. Payroll keeps running even when Tressick pays late.

Also in this chapter

  1. The set-up fee pays for building Tressick Payroll
  2. A fee for each employee paid through the app
  3. The monthly minimum from month 7
  4. Price rises, and why late payment never switches the app off
  5. Your job

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