What is Revenue Share in Marketing?
Dec 19, 2024
At Growth & Brains, we believe in aligning our success with yours. That’s why we operate on a revenue share marketing model—a performance-based partnership where we only earn when you do.
How It Works:
In a revenue share marketing arrangement, we take a percentage of the additional revenue generated as a direct result of our marketing efforts. This means you don’t pay upfront costs or high retainers—our earnings are tied to the success we bring to your business.
What is Revenue Share in Marketing?
At Growth & Brains, we believe in aligning our success with yours. That’s why we operate on a revenue share marketing model—a performance-based partnership where we only earn when you do.
How It Works:
In a revenue share marketing arrangement, we take a percentage of the additional revenue generated as a direct result of our marketing efforts. This means you don’t pay upfront costs or high retainers—our earnings are tied to the success we bring to your business.
How is revenue share different from traditional agency pricing models?
Unlike flat fees or retainers, revenue sharing ties the agency’s compensation to the client’s success, creating aligned incentives. In traditional models, clients pay upfront regardless of performance, whereas revenue sharing ensures payment only for delivered results.
What percentage of revenue is typically shared in a marketing revenue share model?
Percentages vary but typically range between 5%-30% of the additional revenue generated, depending on the scope of work and industry. Higher percentages may apply to complex, high-risk campaigns or new ventures, while lower percentages may apply to larger, more established businesses.
How is the shared revenue calculated—gross revenue, net revenue, or profit?
Shared revenue is often calculated based on gross revenue (total sales), as it’s easier to track and less subjective. In some cases, it can be calculated on net revenue (sales minus costs) or profit, depending on the agreement. flexible for both parties is key here.
Why should I choose a revenue share model over a flat fee or retainer model?
A revenue share model reduces upfront risk and ensures the agency is motivated to deliver tangible results. It provides greater flexibility, as you only pay when you see measurable revenue growth.
What would you say is the main advantages of revenue sharing for businesses?
Reduced financial risk: You don’t pay unless results are delivered. Aligned incentives: The agency’s success depends on driving your growth, ensuring they stay focused on performance.
Is revenue sharing suitable for businesses in all industries?
Revenue sharing works best for industries with measurable revenue streams, such as e-commerce or subscription-based services. It may not suit businesses with huge long sales cycles or those without reliable tracking systems.
Can revenue sharing help my e-commerce business grow more sustainably?
The agency focuses on scalable strategies and incremental growth to maximize long-term revenue instead of short-term wins. It ensures that every marketing dollar is tied to ROI, helping you reinvest profits into further growth. We typically see the clients being able to spend more PPC budget due to the removal of the established agency fee.
What happens if my business doesn’t see the results promised under the revenue share model?
If there are no measurable results, you don’t pay, reducing your financial risk.
How does a revenue share model align the agency’s goals with the client’s goals?
Both parties have the same objective: increase revenue. The agency only gets paid when the client benefits, creating mutual accountability. It fosters a collaborative partnership where both sides are invested in long-term success.
Can the revenue share percentage be renegotiated as the business grows?
Yes, agreements can include clauses for renegotiation as the business scales or if additional services are added.
Ready to Grow?
Discover how our revenue share marketing model can unlock your e-commerce potential. Let’s build a partnership based on trust, results, and shared success.