Charlie Fritch

And this is the ISV ecosystem with Acumatica, so it just shows you there's a lot of them in all four of those categories.

Not all of those are anywhere near applicable to our vertical, to the hotel industry.

But half a dozen of them are, and we have partnership agreements, and we can make revenue off of those.

This is just a little snippet from our OEM software license agreement.

The highlight, basically what we do, we adapted the Acumatica solution to develop additional modules.

So we developed hotel-specific functionality and built that on top of Acumatica.

Then we resell it as a private label, so our platform is labeled as Hotel Investor Apps.

Typical VAR split is 50-50 up to that.

It actually, a value-added reseller may only get 40% of the revenue, whereas an original equipment manufacturer can get, oh, 70% to 80%, depending on volumes.

So this is the structure of the ERP partnership and important considerations.

Development time excluded from royalty when you're starting.

It's going to take more time than you think.

So try to get as much time prior to starting minimum royalty payments.

monthly or quarterly payments revenue share split negotiating that and percent that revenue share You may be able to negotiate a declining percentage as you scale up with higher volumes

We don't pay any revenue to the ERP from our implementation and training fees.

We only pay on the monthly SAS fee.

We own our code.

Vertical exclusivity is something you can negotiate.

We were not able to get it immediately, but we have a trigger to be able to do that and some control over if somebody else was going to enter using Acumatica into the hotel space.

So we became the solution on the Acumatica platform for the hospitality industry.