Forums: Discussions for entrepreneurs and small business.

`Revenue Sharing` is the splitting or sharing of revenue generated between parties.  It can apply in both profits and losses although for most online programs, it is typically more splitting of the profits.

Most familiar / most popular examples are:

• commissions
• affiliate marketing programs (they pay you; the majority are free to signup; many pay quite well if you know where to look)
• Multi-level Marketing (MLM)
• federal government sharing tax revenues with states and local governments

Revenue sharing is utilized in various online applications such as:

• code placed on websites e.g. Google Adsense, Yahoo! Publisher
  
• RSS Feed Marketing (and other protocols - Google example)
  
• domain parking
• and more (some really nice creative methods are available, too)
  

Often times you`ll find someone who is dead set against revenue sharing.  Those are usually the same folks who find themselves getting 100% of nothing and talk ill about others.

But, does it mean you should participate in it?  Answer: Maybe `yes` -- maybe `no`.  Why???

What might be a good percentage (%) or an amount in order for it to feel worthwhile?

Would you be willing to offer revenue sharing to others as an incentive and therefore add it to your marketing plan if you could increase your sales volume even though you would receive less profit due to sharing?

Would you try it if you could generate cash flow to increase Web or foot traffic to someone else`s business if you could get paid without being an employee and set your own hours even if you have your own business?  Believe it, you can always find someone who won`t even consider revenue sharing, yet complain that they can`t make ends meet!  Go figure.

I`m trying revenue sharing with carefully-chosen friends, family and business associates for now so they can make some more money (of course, me too!) especially during these stressful economic times (see this SuN forum thread).  It really didn`t take much convincing to recruit these qualified folks either. At some point when the situation presents itself, I may consider others who are considered qualified when brought to my attention.

Although I am expecting decent results over time, there is on-going prep work involved on both my part and theirs in making revenue sharing successful in various venues such as E-mail, FAX marketing, word-of-mouth advertising, telephone marketing, online, etc., whereby each venue selected is product-driven.

Have any of you tried revenue sharing, yet?  What was your experience?  Is there anything you would urge others to be cautious of? Anything else you`d like to add?

Let us all know so we ALL can make even more money!


Thanks.

*** P.S. May You Rest in Peace, Michael Jackson! ***


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International Business Network, LLC. (IBNETLLC.com)

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Hey profit...

"Revenue Sharing" is how I make up 75% of all my businesses.  I belong to a MLM company, but find myself using it more for my other businesses than the art of actually going around and selling the product.  That isn`t to say that I haven`t signed up my far share of other people to do the business or even use it like I am.  And I do make a pretty good salary every month with the residuals from this alone.  I know if I tried to make a full time income from this alone that I could... but making around $3k every month for doing nothing but my other businesses is very nice.

Now where I make most of my money is through Affiliate Marketing... I operate about a dozen websites where I have gain a very good amount of subscribers/readers and have been made a leader in the chosen niches.  By recommending other people`s products that I have personally tried and given a review on has made me a very good living.  But in my opinion you really need to have gained the readers trust to do this.  But you can make a killing... I know that in all of the sites, if I needed to make some money quick, all I would have to do is, send it to my list and I can see profit.

Now in the dozen websites, I actually do my own products on two of the sites (about to be three) and to be honest this is where the real money is.  Here is what I have done on one of the sites... I wrote an ebook that I sell for $19.95, and I have built this product as an affiliate product where I allow my affiliates to keep 100% of the sales.  Why you might ask?  You will get many people wanting to become an affiliate to this (if your product is good) because they will keep 100%.  But the main reason is that I get these people that bought my e-book on my list, where I can now sell to them everything on the backend.  But right from the beginning I start selling to them, I have an upsell and a down sale to this e-book.

  I have found through lots of testing that for every 100 sales of this e-book I get 8 people that agree to the upsell.  Which is a $49.95/month membership site.  This is a really good percentage for me.  Because I can usually keep the customer for at least months, the last time I did a test, I found that I usually actually keep the average person for six months to a year.  While I have my regulars that have been there for two years. 

Now when I could have only given 50% of the sales to my affiliates, but it was all a personal preference I guess.  Do you want immediate money or can you see the big picture. 

By doing this my list went up 1200%, meaning that once I gain all the new readers trust I can start selling them affiliate products that I market, or even my own again.  And my paid membership site membership has also skyrocketed.  That was just the first month, my product is still out there, and I do still see sales from it.

All of this from doing the work once... that is why information products are so amazing.  I still see my list grow from this and I still see people joining my paid membership site.  And the best part of this is that I got 90% of the material of my e-book from posts I did a few months before that.  I just added more details to it, and boda bing boda boom instant cash funnel.

Now I realize that this might not be that relevant with what you are doing, since it appears that you are talking offline business... but you asked if we have tried it and what our experiences are with it.  So I wanted to throw in my thoughts. 

TheNOWmall.com , a patented Local Search, Rapid Order Fulfillment & Advertising Media Network and its Strategic Alliance enable our unique Revenue Sharing Program to provide Unit Holders with monthly revenues inequalproportion to the successful, well-known Taxicab Fleet Owners with whom the Unit Holders are partnered.

                                                                                                                                                                                          

Unit Holder Available ROI is 79% (e.g. $28,500 return over 3 years on $7,500) with significantly high returns also to Taxicab Fleet Owners and their Drivers.  The symbiotic relationship between the patented Network and major Taxicab Fleet Owners enables the program to be unusually successful.

 

Unit H olders have the powerful profit motivation of the Taxicab Fleet Owners as significant security as each receive the same steady monthly stream of 12.5% of Network netrevenue.  Fleet Owners are heavily invested in their operationsand have 20 to 30 years (or more) critical management experience. The Network is the broker of the Program. 

 

Overview of the Revenue Sharing Program:  

 

Ø  Each Revenue Sharing Unit is linked to a Taxicab “Medallion”.   A Medallion is a license issued by a city/town costing upwards of $350,000 per taxicab to thus limit the number of cabs in any given area and guaranteeing the city they will be available 24/7/365.  Therefore, Medallion owners need to keep their cabs running efficiently 24/7/365 to protect their Medallions and significant investment, switching out underperforming vehicles or Drivers – which, in turn, protects your Unit and virtually guarantees you high, low risk earnings.

Ø  Unit Holders, Taxicab Fleet Owners, Taxicab Agents/Brokers and The Now Mall jointly share 50% of the net revenue generated per order. Driver Lessees receive the other 50% (see chart below).

Ø  Each Driver Lessee currently earns an average of $10.60 per hour for passenger fares per 12 hour shift including tips after Taxicab Lease costs and gas. 70% of their time is either waiting or cruising for fares. 

Ø  Driver Lessees average $14.58 net revenuefor 45 minutes workper Network order for groceries, pharmacy, restaurant & fast food and retail items.  This significant incremental income for preferred work allows DriverLessees to raise their earnings to a reasonable living thus gaining their full enthusiasm to increase the number of orders and customers through excellent ongoing service.

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Gail Nichols