Revenue Sharing

A commercial arrangement where two parties split revenue generated by a joint activity, product, or platform, typically based on a pre-agreed percentage rather than a fixed fee.

Revenue sharing aligns incentives between partners, affiliates, or creators, since both parties only benefit when revenue is generated. It can replace upfront costs with performance-linked compensation.

A founder partners with a platform to distribute her online course. Instead of a fixed listing fee, the platform takes 30% of every sale. Both parties are motivated to drive sales because their compensation is directly tied to performance.