Revenue Share

A compensation model where partners receive a percentage of revenue from the deals they influence, close, or support.
Explanation:

Revenue Share is a compensation model in which partners earn a percentage of the revenue generated from the deals they influence, close, or support. Rather than receiving a one-time flat fee, partners benefit from a portion of ongoing or one-time revenues tied to the customer relationship they helped create or grow.

Key components of Revenue Share models often include:

  • Percentage Agreements: Predefined revenue split percentages, which may vary based on partner type, deal size, or tier level (e.g., 15% for affiliates, 25% for resellers).
  • Duration of Payment: Revenue shares may be one-time (e.g., first transaction) or recurring (e.g., ongoing subscription payments for the customer’s lifetime).
  • Deal Attribution Requirements: Formal processes, such as deal registration or referral submission, to ensure the right partner is credited for influencing or closing the deal.
  • Payout Schedules: Clearly defined timelines for when partners receive their revenue share, such as monthly, quarterly, or upon customer payment.
  • Performance Incentives: Some programs offer increased revenue share percentages based on partner performance, certification completion, or milestone achievements.

Revenue Share models are common in SaaS, cloud services, affiliate marketing, technology partnerships, and reseller ecosystems. They create strong alignment between partners and vendors, encouraging partners to invest more heavily in customer success and long-term relationship building.

Example:
The company offered a 20% revenue share on all deals closed by certified implementation partners.

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