Revenue Share Model

A Revenue Share Model is a way of dividing the income generated from a product or service between two or more parties, based on predetermined percentages. For example, if a company partners with an affiliate, the affiliate earns a certain percentage of each sale they refer. This model aligns incentives, encouraging all parties to promote and grow the revenue, since their earnings depend on the actual sales or profits they help generate. It’s commonly used in industries like publishing, streaming, and online advertising to fairly distribute income based on contribution or agreed terms.