Revenue Model

Let’s look at a few business models from least to greater complexity.

The first scenario is a simple one – a direct transaction where a customer has a direct link to the source of energy. They will use a clearinghouse to manage the deal. The clearinghouse is tied in with the utility.

Revenue Pricing Model One

KW Cash two homes
This simple model shows electricity and money, each going in one direction. Here the energy producer gets 77 percent of the revenue, and the various other participants get 23 percent.
Energy Producer 77%
Utility 10%
3rd Part 5%
Info-Tech Provider 5%
Local Tax 2%
Tax 1%
These splits shown here are arbitrary and change; however, the parties wish.
Then in terms of raw KWH numbers, we split things out below.
50 KWH Tax
Participants Service Providers
Energy Producer 38.5 2.5 1
Utility 5
3rd Part 2.5 0.5
Total 46 2.5 1.5 50
The various business rules added (e.g., pricing, time, essential criteria, min/max, and limits) by the energy supplier, energy management system, and the users will let all parties optimize and negotiate benefits to both sides. The third parties make a small amount in each transaction but will create massive amounts across the millions of transactions they do. Right now, gaming companies make a fraction of a penny for each sale but make millions of dollars in profit per year.

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