One of the biggest decisions skill game operators face is whether to place machines on revenue share or purchase them outright. Each model has distinct advantages depending on your situation.
Quick Comparison
| Factor | Revenue Share | Purchase |
|---|---|---|
| Upfront Cost | $0 | $4,000 - $8,000 per machine |
| Your Revenue % | 35-50% | 100% |
| Maintenance | Included | Your responsibility |
| Risk Level | Low | Higher |
| Available Brands | Banilla, JVL, Primero | JVL only |
Revenue Share Model Explained
With revenue share (also called placement), we provide machines at no cost. You provide the space and electricity. Revenue is split weekly.
How It Works
- We assess your location and recommend optimal machines
- Machines are installed at no cost to you
- We collect and count revenue weekly
- Your share (35-50%) is paid weekly
- We handle all maintenance and repairs
Revenue Share Pros
- Zero financial risk: No upfront investment
- Immediate income: Start earning from day one
- No maintenance worries: We handle everything
- Flexibility: Easy to add or remove machines
- All brands available: Access to Banilla, JVL, and Primero
Revenue Share Cons
- Lower percentage: You keep 35-50%, not 100%
- Less control: We manage the machines
- No ownership: Machines never become yours
Purchase Model Explained
Buying machines means you own them outright and keep 100% of the revenue. Currently, only JVL machines are available for direct purchase.
How It Works
- Purchase JVL machines outright ($4,000-$8,000 each)
- We handle installation and training
- You keep 100% of all revenue
- Optional service plan available, or handle maintenance yourself
Purchase Pros
- Keep all revenue: 100% goes to you
- Full ownership: Machines are your asset
- Total control: Your machines, your rules
- Higher long-term returns: If machines perform well
Purchase Cons
- Significant upfront cost: $4,000-$8,000+ per machine
- Financial risk: If revenue disappoints, you're still out the cost
- Maintenance responsibility: Repairs are on you (unless you buy a service plan)
- Limited selection: Only JVL machines available for purchase
Real Numbers: Revenue Share vs Purchase
Let's compare a scenario where a machine generates $5,000/month in gross revenue:
Revenue Share (45% Split)
- Gross revenue: $5,000/month
- Your share (45%): $2,250/month
- Annual income: $27,000
- Upfront cost: $0
- Year 1 profit: $27,000
Purchase ($6,000 Machine)
- Gross revenue: $5,000/month
- Your share: $5,000/month (100%)
- Annual income: $60,000
- Upfront cost: $6,000
- Service plan: $100/month ($1,200/year)
- Year 1 profit: $52,800
In this scenario, purchasing generates nearly double the first-year profit. However, this assumes the machine performs well. If revenue is lower, the break-even point extends.
Which Should You Choose?
Choose Revenue Share If:
- You want zero upfront investment
- You're new to skill games and want to test the waters
- You prefer hands-off operation
- You want access to all brands (Banilla, Primero)
- Cash flow is a concern
Choose Purchase If:
- You have capital to invest
- You're confident in your location's performance
- You want maximum revenue potential
- You're comfortable handling maintenance
- You want to build equity in assets
Consider a Hybrid Approach
Many operators start with revenue share to prove their location, then purchase additional machines once they see consistent performance. This reduces risk while maximizing long-term returns.
Not Sure Which Model Fits Your Business?
We can help you analyze your specific situation and recommend the best approach. Get a free consultation today.
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