Revenue Sharing Models

Revenue sharing models involve distributing a company's earnings among stakeholders—such as partners, employees, or affiliates—based on agreed-upon percentages. This approach aligns incentives, encouraging participants to work towards increasing overall revenue. For example, in a partnership, one partner might receive a fixed percentage of sales generated by the joint effort. These models can be flexible, adapting to different industries and arrangements, and are commonly used in franchising, affiliate marketing, and joint ventures to fairly allocate income based on contribution or agreed terms.