ROYALTY × TALE
Deal Comparison
Old Deal
vs New Deal.
vs New Deal.
A month-by-month look at what each deal costs Royalty over twelve months, at the revenue target the sales team is built to hit.
Note: This comparison excludes ad spend. Ad spend is a variable production cost paid directly to Meta. It is not part of Tale's compensation under either deal structure.
The Assumption
The sales team's target.
2
Sales Reps
×
$40K
Per Rep / Month
=
$80K
Monthly Target
Each rep carries a $40K/mo benchmark. Two reps producing at target means Tale needs to feed the funnel at $80K/mo in closed revenue.
The Terms
What each deal says.
Old Deal
Current
Monthly retainer to TaleOf which $1,500/mo covers ad management, paid through to Jumpstart ROI.
$5,000
Rev share bonusEquivalent to a 20% rev share, paid in $30K blocks every time $150K in cumulative revenue is crossed.
$30K per $150K
New Deal
Proposed
Monthly retainer to Tale$8,000 floor or 12% of Tale-attributed closed revenue, whichever is greater.
$8K or 12%
Ad management feeTiered, passed through to Jumpstart ROI. Tale contributes $500/mo toward this fee.
Tiered
Milestone bonusOne-time when cumulative revenue crosses $500K.
$15,000
Rev Share Engages
Rev share engages at $66.7K/mo Tale-attributed revenue. Below that, Tale receives the $8K floor. Above that, Tale receives 12% instead.
Tale-attributed closed revenue = closed deals sourced through Tale-operated funnels, campaigns, or sales infrastructure. Attribution rules defined in full agreement.
The Inflection
Where the deals diverge.
The old deal spikes every time $150K in cumulative revenue is crossed, roughly every 2 months at $80.0K/mo. The new deal holds a steady line with one small bump at $500K. The gold area between them is what Royalty saves.
Drag to adjust. See everything update live
Move the handle below to model any monthly revenue scenario. The chart, table, comp breakdown, and savings number all update in real time.
Cumulative Cost to Royalty · 12 Months
Hover any month for detailed breakdown
Old Deal
New Deal
Month by Month
The full breakdown.
Every line item and running cumulative total. Hover any row for a quick summary.
| Old Deal | New Deal | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Month | Mo. Rev | Cum. Rev | Base | Bonus | Monthly | Cumulative | Fee | Bonus | Monthly | Cumulative |
| M1 | $80K | $80K | $5.0K | – | $5.0K | $5.0K | $9.6K | – | $9.6K | $9.6K |
| M2 $150K trigger | $80K | $160K | $5.0K | $30K | $35K | $40K | $9.6K | – | $9.6K | $19K |
| M3 | $80K | $240K | $5.0K | – | $5.0K | $45K | $9.6K | – | $9.6K | $29K |
| M4 $150K trigger | $80K | $320K | $5.0K | $30K | $35K | $80K | $9.6K | – | $9.6K | $38K |
| M5 | $80K | $400K | $5.0K | – | $5.0K | $85K | $9.6K | – | $9.6K | $48K |
| M6 $150K trigger | $80K | $480K | $5.0K | $30K | $35K | $120K | $9.6K | – | $9.6K | $58K |
| M7 $500K milestone | $80K | $560K | $5.0K | – | $5.0K | $125K | $9.6K | $15K | $25K | $82K |
| M8 $150K trigger | $80K | $640K | $5.0K | $30K | $35K | $160K | $9.6K | – | $9.6K | $92K |
| M9 | $80K | $720K | $5.0K | – | $5.0K | $165K | $9.6K | – | $9.6K | $101K |
| M10 $150K trigger | $80K | $800K | $5.0K | $30K | $35K | $200K | $9.6K | – | $9.6K | $111K |
| M11 | $80K | $880K | $5.0K | – | $5.0K | $205K | $9.6K | – | $9.6K | $121K |
| M12 $150K trigger | $80K | $960K | $5.0K | $30K | $35K | $240K | $9.6K | – | $9.6K | $130K |
| 12-Month Total | $960K | $60K | $180K | $240.0K | $240.0K | $115K | $15K | $130.2K | $130.2K | |
Excludes ad spend, paid directly to Meta. Ad management fee shown separately below as a passthrough.
Proposed Concession
Ad Management Fee
Tale contributes $500/mo toward every fixed-tier ad management fee as part of the new deal, reducing Royalty's net cost on the passthrough.
Jumpstart Fee
$2,500
per month
−
Tale Contribution
$500
per month
=
Royalty Pays
$2,000
per month
Implied Ad Spend
$21.3K/mo
at 3.75× ROAS
Current Tier
$20K–$50K spend
Royalty Saves / Year
$6.0K
from Tale's contribution
Passthrough to Jumpstart ROI. Tale pays the full fee to our ad management partner and invoices Royalty for the net amount after the $500 contribution. Fee tiers: $1,500 under $10K spend · $2,000 at $10–20K · $2,500 at $20–50K · $3,000 at $50–100K · 4% above $100K (subsidy ends at the variable tier).
Every Tier at a Glance
Royalty's cost by ad spend tier.
As ad spend scales, the tier changes. Tale contributes $500/mo on every fixed tier. Here's what each month looks like at every level.
| Tier | Monthly Ad Spend | Jumpstart Fee | Tale Covers | Royalty Net |
|---|---|---|---|---|
| Tier 1 | Under $10K | $1,500 | −$500 | $1,000 |
| Tier 2 | $10K – $20K | $2,000 | −$500 | $1,500 |
| Tier 3 Current | $20K – $50K | $2,500 | −$500 | $2,000 |
| Tier 4 | $50K – $100K | $3,000 | −$500 | $2,500 |
| Tier 5 | Over $100K | 4% of spend | – | 4% of spend |
Tale's $500/mo contribution applies across all four fixed tiers. At Tier 5 (4% of spend above $100K/mo), the subsidy ends because the fee becomes variable.
Where Every Dollar Goes
The full comp breakdown.
At $80.0K/mo, here's how every dollar of revenue splits across the team. Hover any stakeholder for more detail.
Monthly Split
Revenue
$80,000
100%
Setters (appointment setters)
−$4,000
5%
Closers (sales reps)
−$12,000
15%
Tale (growth engine)
−$9,600
12%
Ad mgmt fee (net)$2,500 − $500 Tale subsidy
−$2,000
2.5%
Royalty keeps
$52,400
66%
How Each Dollar Splits
Setters5%
Closers15%
Tale12%
Ad Mgmt (net)2.5%
Royalty66%
Monthly Take by Stakeholder
12-Month Earnings
Who gets what, over the year.
At $80.0K/mo for 12 months, here's what every stakeholder takes home, and what Royalty keeps.
Setters
$48.0K
5% × $960.0K
Closers
$144.0K
15% × $960.0K
Tale
$130.2K
12% + $15K milestone
Royalty Keeps
$613.8K
After all team comp & ad mgmt net
Before COGS & ad spend
Before COGS & ad spend
Royalty Saves on Tale Comp
$109.8K
At the $80.0K/mo target run rate over 12 months, Tale's compensation under the new deal is 46% less than under the old deal, a reduction of $109.8K in what Royalty pays Tale. Savings scale with how close actual revenue tracks to target. Overperformance above $80K/mo narrows the gap as the 12% rev share engages.
This figure reflects the change in Tale's compensation specifically, not the change in Royalty's net keeps. For full annual stakeholder breakdown, see the 12-Month Earnings section above.
The old deal compounds cost with every $150K block crossed. The new deal stays proportional. The more we scale, the more Royalty keeps.
Prepared for Carson & Jagi · April 2026