What is RevShare (Revenue Share)?
RevShare (Revenue Share) is a compensation model where an agency or partner earns a percentage of the revenue generated from a client’s sales or results. Instead of fixed fees, payment is tied directly to performance, aligning incentives between both parties.
Table of Contents
Full Definition
Revenue sharing aligns the interests of agencies and clients toward growth.
It reduces upfront costs for clients and rewards agencies for delivering results.
Clear contracts and tracking mechanisms are essential to avoid disputes.
Examples
Aligns incentives
Reduces client upfront costs
Rewards performance
Benefits
Requires accurate revenue tracking
Potential cash flow variability
Contracts can be complex
Common Mistakes
Establish clear terms and transparent reporting systems.
Conclusion
Establish clear terms and transparent reporting systems.