Revenue sharing is the distribution of revenue, the total amount of income generated by the sale of goods and services among the stakeholders or contributors. It should not be confused with profit shares, in which scheme only the profit is shared, i.e., the revenue left over after costs have been removed, nor with stock shares, which may be bought and sold and whose value may fluctuate.
Revenue shares are often used in industries such as game development, wherein a studio lacks sufficient capital or investment to pay upfront, or in instances when a studio or company wishes to share the risks and rewards with its team members. Revenue shares allow the stakeholders to realize returns as soon as revenue is earned before any costs are deducted.
Revenue sharing in Internet marketing is also known as cost per sale, in which the cost of advertising is determined by the revenue generated as a result of the advertisement itself. This method accounts for about 80% of affiliate marketing programs,[1] primarily dominated by online retailers such as Amazon and eBay.
Web-based companies such as Helium, HubPages, Infobarrel, and Squidoo also practice a form of revenue sharing, in which a company invites writers to create content for a website in exchange for a share of its advertising revenue, giving the authors the possibility of ongoing income from a single piece of work, and guaranteeing to the commissioning company that it will never pay more for content than it generates in advertising revenue. Pay rates vary dramatically from site to site, depending on the success of the site and the popularity of individual articles.
In professional sports leagues, "revenue sharing" commonly refers to the distribution of proceeds generated by ticket sales to a given event; the amount of money distributed to a visiting team can significantly impact a team's total revenue, which in turn affects the team's ability to attract (and pay for) talent and resources. In 1981, for example, the Scottish Premier League changed its policy from splitting a match's receipts evenly between its two competing football teams over to a system in which the hosting team could keep all the proceeds from matches hosted at its facilities. This move is generally believed to have negatively affected the league's parity and enhanced the dominance of Celtic F.C. and Rangers F.C.[2] In contrast, the National Football League distributes television revenue to all teams equally, regardless of team performance or number of viewers.
In July 2023, Twitter distributed the first ad-sharing payments to Twitter creators.[citation needed]
^AffStat Report. 2007. A study based on survey responses from almost 200 affiliate managers in the marketing industry
^Jennett, N. & T. Barmby, M. Chalkley, T. Kirsanova, G. Koop, & C. Montagna (Eds.) (1984). "Attendances, Uncertainty of Outcome and Policy in Scottish League Football". Scottish Journal of Political Economy. 31 (2). Hoboken, NJ: Wiley-Blackwell: 176–198. doi:10.1111/j.1467-9485.1984.tb00472.x.{{cite journal}}: CS1 maint: multiple names: authors list (link)
Revenuesharing is the distribution of revenue, the total amount of income generated by the sale of goods and services among the stakeholders or contributors...
new features, including revenuesharing with users through advertisements. Docstoc was initially compared to content sharing databases such as Scribd...
Agreement". 9 May 2023. Hunt, Justin (May 1, 2012). "To Share or Not To Share: RevenueSharing Structures in Professional Sports". Texas Review of Entertainment...
relegation. Closed leagues often feature a form of revenuesharing, where forms of revenue are shared equally by all teams, regardless of team performance...
The total revenueshare is the percentage of direct cost associated with revenue. Direct cost consists of both product cost and marketing cost. It is a...
cover charge. A variant of these revenue-sharing arrangements occurs in cases where the bar also gives the band a share of the bar's alcohol sales receipts...
appointed as the Chief of the commission with the main task of determining revenuesharing between Central Government and State Government for a period of five...
concept of revenuesharing—paying commission for referred business—predates affiliate marketing and the Internet. The translation of the revenueshare principles...
stadium has yet to be built. Under Kamal's leadership, Comilla uses a revenuesharing model regarding player salaries, which is industry standard internationally...
owners. He has been influential in instituting the salary cap and revenuesharing. On April 4, 2016, Reinsdorf was elected to the Naismith Memorial Basketball...
playoff teams selected in an order that combined postseason finish, revenuesharing status, and reverse order of winning percentage. Reverse order of regular...
multiple years in a row, with separate limitations for revenue-sharing recipients and revenue-sharing payers. The draft will permanently switch to 20 rounds...
playoff teams will select in an order that combines postseason finish, revenuesharing status, and reverse order of winning percentage. Reverse order of regular...
related to allegations that Edward Jones failed to adequately disclose revenuesharing payments that it received from a select group of mutual fund families...
The Federal RevenueSharing Act, also called the Expenditures from Receipts Act, was a bill passed in 1913 by the US Congress. It allowed the federal...
take a 30% revenuesharing cut, and argued that when accounting for current rates of content distribution and other factors needed, a revenue cut of 8%...
Commercial revenue may also be referred to as sales or as turnover. Some companies receive revenue from interest, royalties, or other fees. "Revenue" may refer...
Players Association (MLBPA) to accuse both teams of failing to use revenuesharing funds to improve the team's on-field performance, as required in the...
ad revenuesharing program Share, UpdateStar allows developers to use the UpdateStar website as a download mirror to participate from ad revenue created...
for improved revenue generation, sharing". Premium Times Nigeria. Retrieved 2024-01-20. Online, Tribune (2021-08-31). "New revenuesharing formula ready...
federal tax revenue to share with states, cities, counties and townships. According to The New York Times, in FY 1986 the year before revenuesharing was eliminated...
Squidoo was a revenue-sharing article-writing site. Articles were called "lenses". In 2010, the site consisted of 1.5 million lenses as of October 2010[update]...
Baseball players, and MLB over revenuesharing. JPBPA demanded a larger share of advertising and merchandise sponsorship revenue for the tournament, a large...
estate companies to make the rooms/beds available. Zolostays has both revenuesharing and leased model. It uses Internet of Things technology for electricity...
March 2021, Substack revealed that it had been experimenting with a revenuesharing program in which it paid advances for writers to create publications...
and ports of entry and delivery; deposit of public moneys; general revenuesharing; health programs under the Social Security Act (notably Medicare and...
YouTube is an American online video sharing platform owned by Google. Accessible worldwide, it was launched on February 14, 2005, by Steve Chen, Chad...
succeeded with Facebook, where she was an early participant in their revenue-sharing program. Clery directed, wrote, and starred in the three episodes "The...
Global Information