GLOSSARY · BUSINESS SETUP
Revenue share, a cut of every sale.
A revenue share is a pricing term that gives a partner a fixed percentage of a brand's sales, so the partner's fee grows every time the brand's revenue does.
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What it means
In telehealth, revenue shares show up as a percentage of each order, a cut of subscription or maintenance payments, or a platform or merchant fee charged on sales. They are often paired with a medication markup, which works the same way on the pharmacy line.
Some states restrict percentage-based fees for professional services under fee-splitting laws, which is one reason flat fees are the norm in management agreements between an MSO and a medical practice.
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Why it matters to a brand operator
A revenue share feels cheap at launch, when sales are small, and it grows with exactly the thing the brand is trying to grow while the partner's costs stay about the same. At $200,000 a year in sales, a 10 percent share costs $20,000. At $2 million, the same share costs $200,000 for largely the same service.
Before signing, a brand should model its costs at ten times today's volume and ask for every percentage-based fee in writing, including any markup on medication.
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How Tessic Health handles it
Tessic Health takes no revenue share on any plan. The fee is a one-time setup, a flat monthly platform fee, and $25 per completed consult, with medication at wholesale and 0% markup, billed month-to-month after setup.
See the published termsRELATED TERMS
Words that come up next.
MSO
An MSO (management services organization) is a company that runs the business side of a medical practice, including the brand, software, marketing, billing, and staff, under a contract with the physician-owned practice.
White-label telehealth
White-label telehealth is a business model that lets a brand sell medical treatment under its own name while a partner supplies the licensed providers, pharmacy, prescribing, and software behind it.
Dispensing vs. prescribing
Dispensing vs. prescribing is a legal distinction that separates the clinician who decides a patient should take a drug from the pharmacy that prepares and delivers it.