What is Revenue Under Management (RUM)?
Revenue Under Management (RUM) represents the portion of a company’s revenue that flows through structured pricing, quoting, and incentive processes. It reflects how much of the business benefits from disciplined, data-driven guidance rather than manual decisions or outdated tools.
RUM, sometimes referred to as Annual Revenue Management, is a licensing model that is common in pricing, CPQ, and rebates for companies who have high levels of end-users where a “per user” or “per seat” is out of the question based on shear volume. As your organization increases annual revenue or the number of business units that use the software, the more likely the price of your software will change. Your outcomes and business increase with predictability and scalability.
Why Some Pricing & CPQ Providers Use RUM-Based Pricing Models
Some pricing and CPQ vendors use RUM as a factor in their commercial models. The reasoning behind this approach is practical. When a platform influences a larger portion of revenue, the value and responsibility carried by the system increases as well. RUM becomes a simple way to align value, cost, and scale.
This approach benefits customers. A RUM-based model allows organizations to begin with a limited scope and expand as needed. Many companies choose to start with one business unit or product line before extending the system to the full catalog. As they see value, they bring more revenue under management at a pace that fits their transformation and growth goals.
Vendavo typically uses flexible, value-aligned pricing models, but the idea behind RUM-based pricing is familiar. Modern commercial systems become more impactful as they serve more of the business with increased returns. The structure of a commercial agreement should support growth in a realistic and healthy way.
