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Revenue Sharing Model

Revenue Sharing Model

Noun

A revenue sharing model is a partnership agreement where two or more parties distribute a portion of the revenue generated from a joint effort, such as a product sale, service offering or collaborative project. This model aligns the interests of all parties by ensuring that everyone benefits from the success of the initiative.

Revenue sharing models are an effective way to incentivize partners, foster long-term collaboration and scale business growth. They are commonly used in affiliate marketing, software integrations and co-selling arrangements.

Example:

Under our revenue sharing model, our integration partner receives 15 per cent of the revenue from every customer who signs up through their platform.

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