Article . eSignature & RegTech . Sales & Ecommerce

The Digital Transaction Management business model

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The business model for DTM vendors is very similar to that of other enterprise software companies.

  • Pricing is typically based on the number of users/seats, features and quantity of documents needing signatures. It is usually structured as a subscription ranging from 1-3 years and often paid at the beginning of a subscription year. Prices range from $10-50/month/user. Some DTM vendors also offer document-based pricing or a mix of minimum per seat fee plus usage (PPU).
  • Delivery: DTM lends itself to cloud-based software delivery as content often needs to be signed or authorised across different geographies/locations. Hence DTM software is typically delivered on a cloud/SaaS basis with most applications able to operate in the main private, public or hybrid cloud environments. Some DTM companies also sell their products under the more traditional license + maintenance model. The low incremental deployment costs mean that operational leverage and‘drop through’ of additional revenues to the bottom line are similarly attractive than in other software verticals. Product Gross Margins are also comparable in the 75-80% range, partly depending on whether supporting authentication hardware is included or not.


The Digital Transaction Management business model 1
Docusign FY2018 Revenue Mix
Adobe DocumentCloud FY2017 Revenue Mix
  • Inter-compatibility & Plugins: Most leading DTM solutions integrate with major enterprise solutions such as SAP, Salesforce, Netsuite, Dynamics, SharePoint, Office 365, SuccessFactors, Google Drive, Box etc. This is typically achieved by providing extensive Application Programming Interfaces (APIs) for embedding the software into and connecting with other systems. This helps integrate DTM solutions without meaningful interruption of existing workflows. For example, DocuSign disclosed that almost 60% of transactions on its platform are being driven through its API ie originate from larger third-party enterprise software platforms.

Digital Transaction Management - The next growth frontier

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