What is Revenue Sharing?
Revenue sharing is a business model where multiple parties collaborate to generate revenue from a single source. It’s an agreement in which the company shares a portion of its profits with other entities that contribute to the success of the business.
The concept of revenue sharing has been around for ages and has been used in various industries such as music, sports, and media. In recent times, it has gained popularity in e-commerce and affiliate marketing businesses.
In this model, publishers or affiliates promote products on their website or social media channels using unique links that track sales generated by their efforts. The merchant shares a percentage of the sale proceeds with these partners.