A revenue share is an agreement to split the money from each sale by percentage instead of paying a fixed price. A platform takes 10% of what you sell. A co-author takes 40% of a course you built together. An affiliate takes 30% of every sale they send you. The shape is always the same: sales come in, and a share goes out.

It concerns creators, coaches and small brands at every stage. You meet it when you choose a selling platform, when you co-create a product, when you hire someone who wants upside instead of a fee, and when you launch a partner program. Each time, a few percentage points decide who earns what for years.

What is revenue share?

Revenue share is a payment model in which one party pays another a percentage of the revenue generated by a product, a channel or a collaboration. It replaces or complements a fixed fee.

Common forms:

  • Platform revenue share: the tool you sell through keeps a percentage of each sale. App stores and some creator platforms work this way.
  • Co-creation split: two creators build a course or a bundle together and share the sales, for example 50/50 or 60/40.
  • Partner or affiliate commission: someone who sends you buyers earns a share of the sales they generate.
  • Service deal: an editor, a designer or an agency works for a share of revenue instead of, or on top of, a fee. See the agency model.
  • Licensing: a brand pays you a percentage for using your content or name on its product.

Revenue share is not profit share. Revenue is what customers pay. Profit is what remains after costs. A 20% revenue share on a product with 30% margins leaves you with a thin 10%, and nothing if costs rise. It is also not a fixed commission per sale, like $5 per order, which does not grow with the price.

Why it matters

A percentage feels small on one sale and large over a year. Take a coach selling a $300 program, 50 sales a month, so $15,000 a month and $180,000 a year.

  • With a platform taking a 10% revenue share, the platform receives $18,000 a year.
  • With a 5% share, $9,000 a year.
  • With 0% and only the payment provider's fee of about 3%, around $5,400 a year goes to processing, and nothing to the platform.

Now add a co-creator on a 40% split of gross revenue. On $180,000, they receive $72,000. If the split is calculated on net revenue, after processing fees, refunds and the platform share, the base shrinks and so does their share. Which base you choose changes the outcome by thousands of dollars, and it is the part most deals forget to write down.

How to calculate it

Every split needs three definitions: the base, the percentage, and the timing.

  • Define the base. Gross revenue is the price paid by customers. Net revenue removes processing fees, refunds, chargebacks, taxes and sometimes discounts. Write down exactly what is removed.
  • Apply the percentage. Share = base × percentage. For a 40% share on $10,000 of net revenue, the partner earns $4,000.
  • Handle refunds. Decide whether refunds after payment reduce the next payment to the partner. They usually should.
  • Set the timing. Monthly, after the payment provider's payout, is common. Paying before the money arrives puts you at risk.
  • Report it. Share the order list and the calculation with the partner each period.

A worked example on a $197 course sold 100 times in a month, with a 50/50 co-creation split on net:

  • Gross revenue: $19,700.
  • Processing fees at about 2.9% + $0.30: about $601.
  • Three refunds: $591.
  • Net revenue: $19,700 - $601 - $591 = $18,508.
  • Each partner receives $9,254.

Benchmarks and examples

Rough ranges seen in the creator economy:

  • Selling platforms that charge a revenue share usually take between 0% and 10% on top of processing fees, sometimes lower on paid plans.
  • Mobile app stores have long taken 15% to 30% of in-app digital sales.
  • Affiliate commissions on digital products often sit between 20% and 50%, because the extra cost of one more sale is close to zero. On physical products, 5% to 15% is more common.
  • Co-creation splits range from 50/50 for equal work to 70/30 when one side brings the audience and the other the content.

Typical situations:

  • A designer and a photographer release a $39 preset bundle and split net revenue 50/50.
  • A course creator pays a video editor 10% of the course revenue for the first year instead of a $3,000 fee.
  • A brand pays a creator 15% of the sales made with the creator's discount code.

Common mistakes

  • Not defining the base. "40% of sales" leaves room to argue about refunds, fees and taxes.
  • No end date. A share that runs forever on a product you rebuilt alone becomes unfair after two years.
  • Confusing revenue with profit. A generous share on a low-margin physical product can make each sale lose money.
  • Paying before the money arrives. Pay partners after your provider's payout and after the refund window, not on the day of the sale.
  • Ignoring the platform's own share. A 10% platform fee plus a 40% partner split leaves you 50% minus processing, not 60%.

Best practices

  • Write it down. A one-page agreement with base, percentage, timing, duration and exit is enough for most creator deals.
  • Prefer net revenue, clearly defined. List what is deducted, so both sides can check the numbers.
  • Cap or step down the share. For example 50% the first year, 30% after, or a share until a fixed amount is paid.
  • Track sales per partner. A unique discount code per partner makes attribution simple and visible to both sides.
  • Keep platform fees low. Every point a platform takes comes out of the pie you share with partners. Compare the real transaction fee of each tool.
  • Report monthly. Send an export of the orders and the calculation, even when no one asks.

In Roctify

Roctify takes no revenue share. There are 0% transaction fees on every plan, including the free one, so the only amount taken from a sale is your payment provider's processing fee. You pay a fixed monthly price for the plan, not a percentage that grows with your success.

Roctify does not split payments automatically or run an affiliate program, so partner shares are paid by you after your payouts. The tools help you calculate them fairly: create one discount code per partner or co-creator to see which orders they drove, and on the Pro plan export orders and reports to share the numbers. Pro also lets you add team members, so a co-creator can see the store without sharing your login.

FAQ

What is a fair revenue share for a co-created course?

It depends on who brings what. If both sides create content and promote equally, 50/50 on net revenue is common. If one side brings the audience and handles sales, a 60/40 or 70/30 split in their favor is usual.

Is revenue share better than a fixed fee?

A share aligns incentives and costs nothing when nothing sells, which suits launches with uncertain results. A fixed fee is cheaper when sales are high and simpler to account for. Many deals mix both, with a small fee and a small share.

Do I pay the share on sales tax or VAT?

Usually not. Tax collected from the buyer belongs to the tax authority, not to you, so it should be excluded from the base. Write this explicitly in the agreement to avoid confusion.