What is the Revenue Sharing Model

Who I am
Martí Micolau
Author and references

Revenue share it is a business model. The term alone (division of income) already speaks volumes. In fact, it is a model according to which one company contacts another and proposes: “You carry out this project for us: if we get good results we divide the profit X% Y%, if we don't get results we have tried”.

In this model, a large part of the “business risk” is transferred to those who develop / implement the project by those who propose it. This happens when the proposer does not have capital to invest, or does not want to invest / risk them (because perhaps he activates several projects with this model at the same time), or is still not sure of the results that can be obtained.

A typical example of a "revenue share" offer by a company that in most cases has no capital to invest or does not want to risk it, is "dear Mr. X, you place my site for these kwds, you are not paid for the positioning work but is paid with a percentage of the proceeds deriving from the sale of the products offered on the site ".

In the case of Siti/Blog to make the contents always alive and updated, online editorial offices are created in which there are various authors who have the so-called role of "columnists".

Through the System Revenue Sharing a site can grow much faster both in terms of quantity and quality of articles and, through advertising (eg Adsense), can guarantee new revenue and pay the writers.

But how are columnists paid?

Each columnist places his Adsense code in his article and by making it public with reports and comments, he has the opportunity to earn a percentage of the advertising revenue on the manager's site.

Obviously, each site applies its policies for dividing the promos: advertising revenue can be divided by 50% for the site manager and 50% for the writer; this percentage can be variable. You can get to cases in which the percentage recognized to the writer is even 100%, especially on those occasions when a new website is created and there is the need to 'populate' it with new content and above all quickly.

In this case the site manager earns new and quality content for his website, which allows to increase visits, popularity and visibility on search engines.

Furthermore, by always providing new articles, the reader could become attached to the site and not limit himself to reading a single article, but many more, even going so far as to subscribe to the RSS feed of the site, and thus becoming a regular reader. 

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