The $400,000 supplier payout worked example: installments, the once-per-company floor and what is not promised

Short answer

On $400,000 of Actual Supplier Payout, the default reward on a company's first qualifying transaction is $70,000: USD 50,000 plus 5% of $400,000, which is more than 15% of $400,000 ($60,000). That figure assumes the $400,000 was actually paid to the company for a qualifying completed data handoff, excludes separately itemized taxes and expense reimbursements, and assumes no signed Schedule A says otherwise. The worked example below follows one fictional company through three installments and a renewal, Illustrative throughout, to show how the reward accrues installment by installment, where the USD 100,000 Minimum Transaction bites and what still has to happen before anything is paid.

Visual briefFull-size diagram
Illustrative. One $400,000 first qualifying transaction paid in installments of $160,000, $120,000 and $120,000 accrues $58,000, $6,000 and $6,000: cumulative $58,000, $64,000 and $70,000. A separate $100,000 repeat agreed within 12 months adds $15,000, reaching $85,000.
Illustrative, not a forecast, quote or completed deal. For a company's first qualifying transaction, the reward is the greater of USD 50,000 plus 5% and 15% of Actual Supplier Payout, with no cap. The Minimum Transaction is USD 100,000 unless SourceX agrees in writing. Qualifying repeats agreed within the 12-month Repeat Window pay 15%; the floor applies once per company.

The example belongs with the comparison of a Lehman formula and a supplier-payout referral fee, which explains why the base matters. Here the job is one ledger, line by line.

The assumptions, stated before the arithmetic

Illustrative only. Everything below is invented to show the arithmetic; it is not a quote, a forecast or a completed deal, and it does not suggest any company will be paid this amount.

AssumptionIllustrative valueWhy it matters
CompanyA fictional 520-person industrial parts distributorClearly above the 50 full-time employee baseline
Records licensedSeven years of order-exception and returns recordsA substantial dataset; size drives compensation
Agreed compensation$400,000, paid in three installmentsInstallments change timing, not the total
Expense reimbursement$9,500, itemized separatelyExcluded from the base
TermsDefault program terms, no Schedule AA signed Schedule A could differ
Later eventA renewal worth $80,000 to the companyTests the Minimum Transaction and the once-per-company floor

The ledger: three installments to $70,000

The reward is payable proportionately as compensation is actually paid: the USD 50,000 element with the first installment that meets every condition, and the 5% element on each installment as it arrives. On $400,000 that is USD 50,000 plus $20,000, or $70,000, which is more than 15% of $400,000 ($60,000), so the greater-of formula lands on $70,000.

StepPaid to the company this stepCumulative paidUSD 50,000 element5% element this stepCumulative reward
Installment 1$160,000$160,000USD 50,000$8,000$58,000
Installment 2$120,000$280,000Already paid$6,000$64,000
Installment 3$120,000$400,000Already paid$6,000$70,000
Renewal$80,000$480,000Once per company only$0 (below USD 100,000)$70,000

The $9,500 reimbursement appears nowhere in the base. The company receives $409,500 from the original agreement plus $80,000 from the renewal, and none of it is reduced by the reward, which SourceX pays separately.

The last row is the one advisors most often misread. The renewal is real money to the company, but at $80,000 it sits below the USD 100,000 Minimum Transaction, so it earns nothing unless SourceX agrees in writing. Had it qualified and been first agreed within 12 months of the first Closing, it would have paid 15% of its own payout, with no second USD 50,000 floor, because the floor applies once per referred company. The same logic is set out for repeat work in referral fees on repeat business.

What changes the result, and what does not

Three variations show how sensitive the example is.

  • A reduction after payment. Suppose $40,000 of the third installment is later refunded to the buyer and recovered from the company. Actual Supplier Payout falls to $360,000, and the reward falls proportionately to $68,000 (USD 50,000 plus 5% of $360,000), so $2,000 is reversed.
  • A larger deal. If the company were paid $600,000 instead, the reward would be $90,000: 15% of $600,000 beats USD 50,000 plus 5% ($80,000). There is no cap, so extra compensation keeps adding for the referrer.
  • A smaller deal. At USD 100,000 of payout the reward is $55,000; below USD 100,000 the transaction does not qualify and earns nothing unless SourceX agrees in writing. The payout calculation examples and the earnings calculator run other figures.

What does not change it: Actual Supplier Payouts or revenue, which are never the base, and the company's choice of installments, which only moves timing. The full method is on how referral rewards are calculated, and a parallel ledger with editable inputs is in the data licensing payout examples.

The conditions that sit between the ledger and a payment

A ledger row is an accrual, not a transfer. Before any of the $70,000 is payable, every condition in the terms must be met:

  1. A reward becomes payable after SourceX has paid the referred company under its signed agreement and the payout conditions in the program terms are met, including finance approval and your tax and payment details.
  2. A reward becomes payable after SourceX has paid the referred company under its signed agreement and the payout conditions in the program terms are met, including finance approval and your tax and payment details.
  3. SourceX pays the company its compensation.
  4. SourceX finance approves the reward.
  5. You have provided your tax and payment details. For a U.S. partner that usually means a Form W-9, which the IRS describes as how a payee gives a requester its correct taxpayer identification number; without one, backup withholding can apply.

The deadline is 60 days after the later of the Acquisition Partner’s final written acceptance and completed handoff. A lead, a meeting or a signed agreement alone triggers nothing.

What the example cannot tell you about a real client

Whether any company could be paid $400,000 depends entirely on SourceX's review. Before introducing, an advisor can confirm only the baseline and metadata: 50+ full-time employees at peak (contractors excluded), documented operating history, rights to license the records and an authorized contact. Companies in the U.S., Canada and the EU qualify, as do companies in the UK, Australia, New Zealand, India, Singapore, South Africa, Latin America, the UAE and Saudi Arabia when at least 70% of the data is in English. At metadata level, an advisor can also note which record types exist, roughly how many years, which systems hold them and who owns them. Never ask for raw records.

What stays unknown until the review: buyer interest, the rights review result, dataset selection, the offer and therefore any reward. If a client asks whether this example applies to them, the honest answer is that it shows the formula, not their deal. The related page on whether a referral fee reduces the company's payout covers the client's side of the same numbers.

Next step

Refer a company. No cap on rewards. Default reward on a company's first qualifying transaction: the greater of $50,000 plus 5% and 15% of Actual Supplier Payout, with no cap; further qualifying transactions first agreed within 12 months of the first Closing pay 15%. Eligibility and payment conditions apply, including the USD 100,000 Minimum Transaction, and a signed Schedule A or addendum can differ. A lead, meeting or signature alone does not trigger payment.

If you know a company that could plausibly license records on this scale, register as a partner, check it against who qualifies, and quote only the formula in the program terms, never this example as a promise; the rewards page shows the same formula.

Common questions

If the company is paid $400,000, when is the $70,000 paid?

A reward becomes payable after SourceX has paid the referred company under its signed agreement and the payout conditions in the program terms are met, including finance approval and your tax and payment details. The deadline is 60 days after the later of the Acquisition Partner’s final written acceptance and completed handoff.

Would a $600,000 payment change the result?

Yes. There is no cap. On $600,000, 15% ($90,000) beats USD 50,000 plus 5% ($80,000), so the default reward on the company's first qualifying transaction would be $90,000 rather than $70,000.

Can a Schedule A change these numbers?

Yes. A signed Schedule A or addendum can set different terms, and where it does, it governs. The example uses the default terms only.

Sources

  1. refer.sourcex.si/terms
  2. refer.sourcex.si/rewards
  3. irs.gov/pub/irs-pdf/fw9.pdf

Free resources

Know a company with valuable proprietary data?

Become a referral partner, get your link and introduce the company’s CEO (in an owner-run company, usually the owner). Referral partners can join from most countries. We can't work with partners in countries or regions under U.S. sanctions or on U.S. restricted-party lists. The companies you introduce should be based in the U.S., Canada and the EU, or in the UK, Australia, New Zealand, India, Singapore, South Africa, Latin America, the UAE and Saudi Arabia with at least 70% of their data in English.

Refer a company →

I own a business

Explore licensing your company's data directly to SourceX for AI training and evaluation. Start a short assessment; no uploads needed.

Start an assessment