Yes, revenue sharing at some percentages works very well. I am an investor who has funded a few companies in this manner.
The company needs to have very healthy margins though or the repayment will be too great a drag on growth.
Thanks for your responses.
The business is a private outdoor pool/swim club in an urban area which has none at all.
I am not sure how counting customers at another club would help as I don`t know what their total membership is to compare attendance numbers with (and it would be a suburban club with different demographics too.
And I am fully aware of the drop out rate or non-attendance rate of health clubs but I feel like there is a unique reason for that. People just have a hard to time sticking to a workout routine. I don`t feel like that translates to other seemingly similar "membership" type businesses where similar discipline is not required.
But obviously no matter how enjoyable an activity, not everyone attends regularly. No matter how beautiful the day, when I drive by the marinas, most boats sit unused. I just wondered if there was a commonly accepted formula for a rough estimation of this