shared revenue model

A shared revenue model is a business agreement where two or more parties split the income generated from a product or service. Instead of one entity keeping all the profits, they agree to distribute a portion to partners based on their contribution or predefined terms. This approach aligns incentives and encourages collaboration, as each party benefits directly from the success of the venture. It's commonly used in partnerships, franchising, or platform ecosystems, fostering mutual investment and growth by sharing financial gains proportionally.