How the money flows
This page explains where Exalynt's revenue comes from, what the company keeps from each engagement, and what that money is for. We publish it so clients and engineers can see exactly how a payment is split.
Exalynt retains the contribution: what's left after engineer payouts and direct costs. It is not the full client invoice, and it is not profit.
Where revenue comes from
Exalynt has two revenue lines. A third item appears on the client's bill, but it is not Exalynt revenue.
| Line | What it is | Is it Exalynt revenue? |
|---|---|---|
| Engineering Capacity | Flex, Core, or Dedicated blocks, paid once and up front for each iteration. Covers discovery, architecture, development, integrations, and new features. | Yes, our primary line |
| Exalynt Managed fee | A flat $199/month for Exalynt to run the software in production. The fee starts only once the software is in real business use. | Yes |
| Infrastructure | Servers, databases, storage, email, SMS, AI usage, domains, and certificates, passed through at cost with no markup, resale margin, or percentage. | No, pass-through |
Block prices are on Engineering Capacity.
How a block payment is split
- The engineer who delivers the block is paid first. Payout = Capacity Payout Basis × Engineer Share (details). The client's price does not affect it.
- What's left is the Contribution. Contribution = what the client paid − engineer payout − any direct costs for that block.
- Exalynt retains the contribution.
- Engineer payout $3,850 59%
- Exalynt retains $2,650 41%
- The engineer is paid first: $7,000 basis × 55% = $3,850. The client's price doesn't affect it.
- What's left is the contribution: $6,500 − $3,850 − direct costs.
- Exalynt retains the contribution, and pays for everything else from it.
Engineer pay is not a percentage of the client's price. An engineer earns the same for a block whether the client is on Exalynt Managed or Self Managed, and if client prices change, payouts do not.
Exalynt also retains the Exalynt Managed monthly fee after any direct costs of providing the service. Infrastructure billed to clients at cost passes straight through and is not retained.
If a block or fee leaves nothing after costs, Exalynt absorbs the shortfall. Engineer payouts are never reduced to protect company margin.
Examples
These examples use current client prices from exalynt.com and a Market 1 Senior engineer (55%), with no other direct costs.
Every block
| Block · plan | Client pays | Engineer payout | Exalynt retains | Exalynt as % of invoice |
|---|---|---|---|---|
| Flex · Managed | $500 | $343.75 | $156.25 | 31% |
| Flex · Self Managed | $750 | $343.75 | $406.25 | 54% |
| Core · Managed | $2,750 | $1,650 | $1,100 | 40% |
| Core · Self Managed | $3,500 | $1,650 | $1,850 | 53% |
| Dedicated · Managed | $6,500 | $3,850 | $2,650 | 41% |
| Dedicated · Self Managed | $8,000 | $3,850 | $4,150 | 52% |
Exalynt typically keeps 31–54% of the invoice on a Senior-delivered block. The share depends on who delivers: on a Managed Dedicated block Exalynt keeps $4,400 when a Junior (30%) delivers but $2,300 when a Principal (60%) does. Managed Flex leaves only $156.25 with a Senior and $125 with a Principal. It is priced as an entry point for clients, not as a source of margin, which is why Exalynt is careful with discounts on small blocks.
Managed monthly fee
| Per project, per month | Amount |
|---|---|
| Managed fee | $199 |
| Direct service costs | $0 |
| Exalynt retains | $199 |
The fee covers operating production, not new features. When a project needs ongoing support beyond what the fee covers, that work is sold as Engineering Capacity.
A sample month
Suppose 4 Dedicated blocks average $7,000 each, all delivered by Market 1 Seniors. 10 Managed projects each pay $199.
| Exalynt keeps | Calculation | Amount |
|---|---|---|
| Dedicated blocks | 4 × ($7,000 − $3,850) | $12,600 |
| Managed fees | 10 × $199 | $1,990 |
| Total, before shared costs | $14,590 |
That total is not profit. Everything in the next section still comes out of it.
What retention pays for
- Finding work: sales, proposals, and conversations that don't turn into paid work.
- Running the company: software, security, insurance, accounting, legal, administration, and payment processing.
- Building the team: recruiting, onboarding, training, and improving how Exalynt delivers.
- Absorbing risk: blocks that take longer than planned, and unpaid or refunded client bills. This is the risk Exalynt takes on for clients in the block model.
- Self-funded capacity: blocks Exalynt buys for itself, such as open source, technical debt in our tooling, charitable work, and future investments (details).
- Reserves and growth: cash set aside for slow months, reinvestment, and eventually profit.
Cash priorities
When cash is limited, Exalynt pays in this order:
- Engineer payouts and committed delivery costs.
- Operating bills.
- Reserves. The target is at least 6 months of fixed operating expenses, built from retained contribution.
- Owner distributions. These are considered only after everything above is funded.
Frequently asked questions
Is what Exalynt retains its profit?
No. The contribution pays for finding work, running the company, building the team, absorbing risk, self-funded capacity, and reserves. Profit, if any, comes after all of that.
Does a discount reduce the engineer's payout?
No. The payout is Capacity Payout Basis × Engineer Share, and client prices don't enter it. If a block leaves nothing after costs, Exalynt absorbs the shortfall.
Does Exalynt mark up infrastructure?
No. Infrastructure is billed at cost, with no markup, resale margin, or percentage, and it is not Exalynt revenue.
Why does Exalynt keep more on a Self Managed block?
The client price is higher and the engineer payout is the same. Managed clients get preferred prices because operating on Exalynt's standardized stack makes each block more efficient (details).
What happens when cash is tight?
Exalynt pays engineers and committed delivery costs first, then operating bills, then reserves, and only then owner distributions. See Cash priorities.