Pro forma — govrn / MCG · AI Governance
The full pricing model for the operation: three commercial phases — Discovery, Implementation, and the recurring Annuity — with a multi-party margin waterfall and a lifetime-client-value forecast. Two floors are enforced in code: Kelly nets ≥30% and govrn nets ≥30% on every phase. This is the independent-attestation offering — not inventory or monitoring, which the platforms now ship.
Modeled through the Kelly white-label channel (Kelly takes 30% of every client dollar; govrn nets the rest after delivery). Direct and Microsoft co-sell keep more for govrn — see Channels. All inputs are labeled, tunable assumptions in model.ts.
Three commercial phases
The engagement is unbundled and priced by phase — the client buys the discovery, then the build, then the recurring managed governance. Each phase stands on its own economics.
External + digital-footprint assessment across every cloud, model, and agent → the sourced evidence base and scoped path to an independent attestation.
The governance program built and adopted — policy suite, AI inventory, risk register, controls mapped to ISO 42001 / NIST AI RMF / EU AI Act, team training, and the signed independent attestation.
Managed governance per year — live dashboard upgrades and updates, continuous monitoring, control-drift alerts, regulatory updates, and annual re-attestation.
Discovery and Annuity are platform-leveraged (senior expertise + the govrn platform + consumed Agent 365 / Purview telemetry) and carry high margin; Implementation is the labor-heavy build phase. Prices are enterprise value-based; delivery hours are the real effort per phase.
Margins all the way around
The waterfall for every phase and tier: client price → Kelly's 30% channel cut → govrn's wholesale → minus delivery cost → govrn's net. Kelly nets 30% on every line; govrn clears 30%+ on every line too.
1. Discovery
| Tier | Client pays | Kelly cut (30%) | Delivery cost | govrn net | govrn net % | Total GM |
|---|---|---|---|---|---|---|
| Smaller enterprise | $150,000 | $45,000 · 30% | $26,250 (250h) | $78,750 | 75.0% | 82.5% |
| Mid enterprise | $250,000 | $75,000 · 30% | $39,900 (380h) | $135,100 | 77.2% | 84.0% |
| Large enterprise | $350,000 | $105,000 · 30% | $54,600 (520h) | $190,400 | 77.7% | 84.4% |
2. Implementation · Training · Adoption
| Tier | Client pays | Kelly cut (30%) | Delivery cost | govrn net | govrn net % | Total GM |
|---|---|---|---|---|---|---|
| Smaller enterprise | $200,000 | $60,000 · 30% | $94,500 (900h) | $45,500 | 32.5% | 52.8% |
| Mid enterprise | $400,000 | $120,000 · 30% | $178,500 (1700h) | $101,500 | 36.3% | 55.4% |
| Large enterprise | $700,000 | $210,000 · 30% | $304,500 (2900h) | $185,500 | 37.9% | 56.5% |
3. Annuity — dashboard upgrades & updates per year
| Tier | Client pays | Kelly cut (30%) | Delivery cost | govrn net | govrn net % | Total GM |
|---|---|---|---|---|---|---|
| Smaller enterprise | $90,000 | $27,000 · 30% | $27,300 (260h) | $35,700 | 56.7% | 69.7% |
| Mid enterprise | $150,000 | $45,000 · 30% | $44,100 (420h) | $60,900 | 58.0% | 70.6% |
| Large enterprise | $250,000 | $75,000 · 30% | $71,400 (680h) | $103,600 | 59.2% | 71.4% |
"Total GM" is the whole-operation gross margin (client price − delivery cost). Kelly's cut and govrn's net both come out of it, and both stay above 30% at every tier and phase — the model asserts it. Outside-seller commissions (the plugin) are paid from Kelly's cut, not govrn's margin.
Lifetime client value
One client across the full relationship — Discovery + Implementation + 3 years of annuity. The recurring dashboard-upgrade line is where it compounds.
| Tier | Discovery | Implementation | Annuity (3yr) | Client LTV | Kelly lifetime | govrn net lifetime |
|---|---|---|---|---|---|---|
| Smaller enterprise | $150K | $200K | $270K (3yr) | $0.62M | $186K | $231K · 53.3% |
| Mid enterprise | $250K | $400K | $450K (3yr) | $1.10M | $330K | $419K · 54.5% |
| Large enterprise | $350K | $700K | $750K (3yr) | $1.80M | $540K | $687K · 54.5% |
A single mid-enterprise client is worth $1.10M over 3 years — $330K to Kelly and $419K net to govrn. A 5-year retention lifts every annuity line ~67%. Annuity churn assumed 10%/yr; retention is the single biggest lever on LTV.
Go-to-market channels
The waterfall above is modeled on the Kelly channel (its 30% cut is the most conservative case for govrn). The other channels keep more for govrn or add reach:
| Channel | Who sells | Cut | Note |
|---|---|---|---|
| Kelly enterprise channel | Kelly sales force (white-label MCG) | 30% | The modeled base above — Kelly nets 30%, govrn nets the rest on every phase. Warm base + existing paper compresses the cycle. |
| Enterprise direct | govrn founders + AE | 12% | No channel cut — govrn keeps the full wholesale. Highest margin, founder-time-bound. |
| Microsoft co-sell / ISV | Microsoft sellers + govrn AE | 15% | ~3% marketplace fee; retires Azure commitment (MACC). Slow to activate, huge budget access. |
| Al Petrie / SME channel | Al Petrie Advisors (energy/ESG) | 25% | SME opens the door + co-delivers the report; govrn attests. Durable 20–30% share. |
Direct keeps govrn's full wholesale (no channel cut) — highest margin, founder-bound. Microsoft co-sell trades ~15% for enterprise reach + MACC pull-through. Al Petrie opens the energy/ESG door and co-delivers the report; govrn attests.
Sales plugin — the seller engine
Productize the /sell rep dashboard (v0): connect HubSpot, generate send-links, run campaigns, and run a commission engine so anyone can sell this — Discovery → Implementation → Annuity, all tracked, attribution locked at send-link.
| Level | Initial phases | Annuity |
|---|---|---|
| L1 — Referral Intro only; govrn closes | 8% | 3% yr1 only |
| L2 — Reseller / Rep Sources + works the deal in-plugin; govrn delivers | 15% | 10% life-of-account |
| L3 — Senior / Channel Carries a book; self-sufficient | 20% | 12% life-of-account |
Accelerators 1.0× / 1.15× / 1.3× / 1.5× by quota band. Attribution locked at send-link; commission auto-calc at MSA-signed; paid on cash-collected; clawback if cancel <90 days. Outside-seller commission is paid from Kelly's channel cut, not govrn's margin.
Roadmap → tech team
- Phase 1 — Plugin MVP. CRM connect (HubSpot first), send-links + attribution, campaign builder, commission auto-calc at MSA-signed.
- Phase 2 — Deal automation. Proposal → MSA/SOW/DPA → e-sign → cash-collected payout, soup to nuts.
- Phase 3 — GTM website. The seller program + govrn × Enterprise × Kelly brand site.
- Phase 4 — Marketplace. Azure Marketplace transactable offer + co-sell collateral.
Pitch — Microsoft co-sell
Microsoft has made the bet, and IDC affirmed it: AI gets adopted only when it's governed. Agent 365 + Purview give enterprises the registry, monitoring, and self-scored readiness. The one thing no platform can provide is the independent, signed attestation a board and a regulator require — you cannot certify your own control plane. That is exactly what govrn delivers, on top of your platform, not against it.
We're a pure pull-through motion. Every govrn engagement consumes Agent 365 + Purview telemetry as evidence and adds the independent attestation that unblocks the workload. When governance clears, Azure OpenAI, Foundry, and Copilot consumption scales — we de-risk the spend, we don't slow it.
We'll publish a transactable, Azure-platformed offer, make it MACC-eligible, and complete co-sell-ready collateral now. Your field sellers get an independent-attestation answer they can attach to any AI deal; the customer gets a vendor already on their Microsoft invoice.
govrn also operates as "MCG · AI Governance" through Kelly's enterprise channel, so we bring our own demand into the motion. Let's pick three accounts and prove the pull-through.
Pitch — Kelly enterprise
Every enterprise account in your book is being asked the same question by their board: "Can we prove — independently — that our AI is governed?" Most can't answer it, and no cloud or AI vendor can answer it for them. That's an independent-attestation gap, and it's exactly the differentiated, senior-rate line your enterprise sellers can attach to relationships you already own.
MCG · AI Governance is delivery-ready and white-labeled to you. Your teams sell it under the MCG brand; we deliver the assessment, the framework mapping, the board-ready independent attestation, and the ongoing program. You add a high-margin advisory SKU without standing up a practice.
The economics favor you. This model is built so you net 30%+ on every phase — Discovery, Implementation, and the recurring annuity — off healthy gross margins, on senior advisory work that's structurally richer than commodity staff-aug. It plugs straight into your enterprise motion.
There's a second multiplier: govrn is pursuing Microsoft co-sell, so the pipeline is amplified from the platform side. Let's pick three of your largest AI-active accounts and prove the margin and the repeatability.
Assumptions — tune & re-run
| Role | Base salary | Fully-loaded |
|---|---|---|
| Principal / Engagement Lead | $225,000 | $175/hr |
| Sr. Governance Consultant | $150,000 | $117/hr |
| Delivery PM | $110,000 | $86/hr |
| Governance Analyst | $90,000 | $70/hr |
Fully-loaded = base × 1.4× burden ÷ 1800 productive hrs → blended $105/hr. Knobs: Kelly cut 30% · floor 30% (both sides, hard) · annuity retention 3yr · churn 10%. Phase retail prices + delivery hours live in PHASES. Change one and run bun internal/proforma/build.ts. Figures illustrative until calibrated with real labor + win data; delivery hours are the real effort per phase, not tuned to a margin target.