How And When Do Associate Facilities Get Paid?

Associate facilities are typically paid a fixed fee for their facility. Various attributes such as seating capacity, amenities on site (e.g.: lounge, restaurant, concession), number of months open annually, and profile of user groups all contribute to a facility’s marketability. Based on these attributes, Action Sports Advertising scores the facility and determines what the market will bear for the facility vis a vis several hundred other comparable facilities in the network.

In some instances, associate facilities may be eligible to be paid a full 50% of Gross Profit, in the same fashion that partner facilities are entitled to. Gross Profit equals Gross Revenues less Costs of Sales (i.e.: the profit realized after Costs of Sales Expenses have been accounted for). Costs of Sales Expenses are typically limited to sales commissions, materials (where required) and shipping (when not charged back to the client). Only Costs of Sales Expenses are subtracted from Gross Revenues; Action Sports Advertising absorbs all other administrative and overhead expenses on its own, after Gross Profits have been shared with facilities. Contact Action Sports Advertising to determine if your facility is eligibility for this type of revenue sharing.

While this medium is typically sold to advertisers on an annual basis only (to smooth out seasonal fluctuations in attendance), and payment is collected at once, payments terms are occasionally granted to advertisers on an as needed basis (semi annually or quarterly being the most common, although monthly is not unheard of). Accordingly, payments to associate facilities take place once Action Sports Advertising has received full payment from the advertising client.

What Is The Revenue Potential?

The amount revenue shared back to the partner or associate facility varies, and is dependent upon what Costs of Sales Expenses were incurred, and what the client was charged, which itself varies dependent upon how many rinks the client purchased and for what term. Accordingly, revenue potential can vary considerably from facility to facility. A number of factors, including facility attributes, supply and demand, client requests and overall economic outlook can affect revenues generated for an associate facility.

An important benefit of the revenue sharing arrangement is the fact that it is as much in Action Sports Advertising’s best interests to see that the program is successful as it is in the associate facility’s best interests. If the associate facility is not earning revenue, neither is Action Sports Advertising. This partnership and the revenue sharing it entails provides the opportunity for both parties to work together to make the program successful.

Contact Action Sports Advertising for an estimate of the revenue potential for your facility.