Royalty Rate Modeler
P23-EDU
by TWENTY3 Intelligence
Royalty Rate Modeler
Library
⬇ PDF
⬇ Excel
v1.0
Brand & Licensing Tool 41
Royalty
Rate
Modeler
Find the right royalty rate by working backwards from licensee margin floor and licensor income target. Model tiered royalty structures, volume thresholds, and the impact on both parties' economics.
1
Licensee Economics
Licensee Sell Price ($)
Licensee COGS ($)
Licensee Op Costs ($)
Min Acceptable Margin (%)
Licensee's floor
Max Affordable Royalty Rate
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Max Royalty $ / Unit
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2
Licensor Income Target
Annual Units (Licensee Sales)
Licensor Annual Income Target ($)
Min Royalty Rate for Target
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3
Tiered Royalty Structure
Tier 1 Rate (%) - up to
Tier 1 Volume Threshold
Tier 2 Rate (%) - above
Negotiation Zone
-
acceptable royalty range
Royalty Rate Sensitivity
Royalty Rate
Licensor/yr
Licensee Margin
Viable?
Tiered Structure Analysis
Tier 1 royalties (up to threshold)
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Tier 2 royalties (above threshold)
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Total tiered royalties
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Effective blended rate
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P23-EDU
by TWENTY3 Intelligence · ·
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P23-EDU · TWENTY3 Intelligence
Brand Tool 41
·
Royalty Rate Modeler
·
Max Rate · Min Income · Tiered Structure · Negotiation Zone
·
P23-EDU · TWENTY3 Intelligence
Brand Tool 41
·