Revenue Sharing
In websites, revenue sharing refers to revenues generated by a website being shared by multiple parties.
Affiliate marketing is an example of revenue sharing. Product merchants pay affiliates a percentage of revenues from customers that the affiliate referred to the merchant.
Sometimes website publishers encourage users to create content on a website and the publishers then share advertising revenue generated by the content with the content creator.
Ad networks like Google AdSense are, in fact, a form of revenue sharing. Publishers place Google AdSense codes on their websites which display ads from Google’s advertisers on the website. Google then shares ad revenue it generates from advertisers with the publisher.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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