Revenue Sharing

Revenue sharing has multiple, related meanings depending on context.

In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner(s) and limited partners in a limited partnership. Another form shares with a company's employees, and another between companies in a business alliance.

On the Internet, revenue sharing is also known as cost per sale, and accounts for about 80% of affiliate compensation programs. E-commerce web site operators using revenue sharing pay affiliates a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party cost that the customer pays) generated by customers whom the affiliate refer via various advertising methods. Another form of online revenue sharing consists in people working together and registering online in a way similar to that of a corporation, and sharing the proceeds. A third form of revenue sharing on the internet consists of enticing internet users to sign up and create content by offering a share of advertising revenue.