RevShare Model
Revenue is the total amount of income generated by the sale of goods or services by a business.
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What is Revenue Sharing?
Revenue sharing is the distribution of revenue to a group of stakeholders who work as a team to sell something. Stakeholders can be individuals or businesses.
RevPay works with businesses to pay out shares of revenue to all participants on a pre-determined and mutually agreed upon methodology.
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Why Share Revenue?
Revenue shares are PURE metrics. They are performance based and directly allow all stakeholders to see a dynamic, active measurement of the success of a particular business deal.
Great revenue sharing arrangements end up being a win-win for all parties involved. All parties in a revenue sharing business grow together, win together, and most importantly protect the downside.
Revenue sharing is especially good to employ in a situation where the parties want to mitigate their risk or upfront investment. Revenue shares allow the entire team of contributors to share in the risks and rewards of the outcome. RevShares also allow the stakeholders to realize success immediately, before other costs are deducted or calculated.
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Why Not Profit Sharing?
Where profit-sharing will tend to have many complexities for extrapolating profits, revenue sharing arrangements do not. Either the money hit the account as a result of a sale or it did not!
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Examples of Revenue Share Models
Revenue sharing models are not new, and are used by the biggest most successful corporations like:
[Logos] Amazon, Apple, Uber, YouTube, Simon Malls, Disney, AirBnb, Grand Central Station, Expedia, the Canadian Federal Government, SalesForce, Compass, McDonald’s, ClearCo
Apple App Store Model
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RevPay allows anyone in business to leverage the power of revenue sharing through it’s customizable framework. Revenue sharing is no longer just for larger enterprises with armies of lawyers and accountants; with RevPay any business can improve their cash flows and predictability by realigning their vendor’s payment arrangements to be revenue shared instead.