What is Revenue Share?

Revenue share is a business model where earnings from sales are divided between multiple parties—typically a creator and the platform or partner facilitating the sale. This model is common in the creator economy and affiliate marketing.

Common Revenue Share Models

Platform Revenue Share

• Transaction Fees: Platform takes a percentage of each sale (e.g., 5-10%)
• Subscription Model: Platform charges monthly fee instead of per-transaction cuts
• Hybrid: Combination of subscription plus reduced transaction fees

Affiliate Revenue Share

• Percentage of Sale: Affiliates earn 10-50% of referred sales
• Recurring Commissions: Ongoing percentage of subscription revenue
• Tiered Commissions: Higher rates for top-performing affiliates

Partnership Revenue Share

• Co-Created Products: Split earnings 50/50 or based on contribution
• Licensed Content: Creator receives royalties per sale
• White-Label: Resellers mark up and keep the difference

Factors Affecting Revenue Share

• Platform value and reach
• Industry standards and competition
• Volume of sales
• Type of product (digital product vs. physical)
• Level of support provided

Negotiating Revenue Share

• Compare platform rates before committing
• Consider the total value provided, not just the percentage
• Factor in payment processing fees separately
• Look for volume discounts as you scale
• Evaluate additional services included (hosting, support, marketing)

Best Practices

• Calculate your true take-home after all fees
• Model different scenarios to understand breakeven points
• Build relationships for better partnership terms
• Diversify platforms to reduce dependency on any single revenue share model