Understanding the Revenue Share (Performance Fee)

Understanding the Revenue Share (Performance Fee)

Cavaco AI's pricing model is designed to align our success directly with yours. Our pricing primarily consists of two components: a Base Subscription Price (a fixed, recurring flat fee) and a Revenue Share (a performance-based fee tied to the actual value we drive for your business).

This guide explains how the revenue share component works, how it's calculated, and when it is billed.

How the Revenue Share is Computed

The revenue share calculation takes place continuously, but it is grouped into 30-day billing periods starting from the date you activate your plan.

Here is exactly how we compute your revenue share sum at the end of every period:

• Daily Tracking: Each day, we identify all successfully placed orders that our AI interacted with and helped convert. We filter for specific attribution touchpoints—meaning a user interacted with a Cavaco bot, an active campaign, or a widget on your store before purchasing.
• Cancellations Deducted: If a previously attributed order is fully cancelled, its order value is subtracted from the day's total attributed revenue.
• Discounting Trial Days: If any days during the 30-day period took place during your free trial, we exclude those days entirely from the revenue share computation.
• Percentage Applied: Once the total attributed revenue is summed across the 30-day period for non-trial days, we apply your plan's specific Revenue Share Percentage (e.g., 2%, 5%).
• Capping the Charge: Some plans offer a Revenue Share Cap. If the calculated revenue share exceeds your plan's cap limit, the fee will be immediately reduced and fixed to that maximum cap.

Billing Providers

While Cavaco manages the calculation of your base and revenue share fees, the actual invoicing and collection of these fees are handled by an external billing provider. The billing provider used depends entirely on your e-commerce platform:

• Shopify: If your store is built on Shopify, your billing is handled natively through Shopify.
• WooCommerce & BigCommerce: If your store is built on WooCommerce or BigCommerce, your billing is handled securely through Stripe.

The Billing Process

Once the 30-day period is completed, your final revenue share fee is calculated and locked in. Instead of invoicing you manually, this fee is submitted directly to the billing platform tied to your account (e.g., Shopify or Stripe).

• How it appears: The total will be billed to your account as a Usage Charge on your platform invoice.
• Invoice cycle details: It will feature a description similar to: "X% of Order Revenue — [Start Date] to [End Date]".
• Collection Timing: Since this is submitted as a usage charge, the actual deduction from your card or payout will depend on the standard billing cycle dates set by your platform (Shopify or Stripe). For example, Shopify generally collects app usage charges on your regular 30-day Shopify subscription invoice date.

Example Scenarios

Scenario 1: Subscription with a Free Trial

• Jan 1st: You start your subscription with a 14-day free trial. Your base subscription fee won't be billed until the trial is over.
• Jan 1st - Jan 14th: (Trial Period). Cavaco generates $5,000 in attributed revenue. You are charged $0 for revenue share.
• Jan 15th - Jan 30th: (Active Period). Cavaco generates an additional $10,000 in attributed revenue.
• Jan 31st: Your 30-day cycle concludes. Your plan has a 5% revenue share. The $10,000 generated during the active days is multiplied by 5%, resulting in a $500 fee.
• Feb 1st: A $500 usage charge is added to your Stripe or Shopify billing account.

Scenario 2: Subscription without a Free Trial

• March 1st: You start your subscription without a trial. Your base subscription fee is billed immediately.
• March 1st - March 30th: (Active Period). Cavaco generates $15,000 in attributed revenue.
• March 31st: Your 30-day cycle concludes. Your plan has a 2% revenue share. The $15,000 generated is multiplied by 2%, resulting in a $300 fee.
• April 1st: A $300 usage charge is added to your Stripe or Shopify billing account.