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ONLINE BUSINESS HELP

Should You Offer Revenue Sharing?
By: KC Morgan
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    2008-11-19

    Table of Contents:
  • Should You Offer Revenue Sharing?
  • Benefits of Revenue Sharing
  • Revenue Sharing Options
  • Content for Sale

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    Should You Offer Revenue Sharing?


    (Page 1 of 4 )

    There are a lot of good ways to get rich text on your site, but it all boils down to one fact: someone has to create that content. At some point, you may find you no longer have the time or inclination to create those words yourself. Hiring writers to keep your site fresh with a constant flow of steady content is a great idea. The trouble is, they’ll probably want to be compensated for their efforts. Should you offer revenue-sharing to your writing staff?

    What is Revenue Sharing?

    The term revenue sharing actually doesn't apply only to online business practices at all; in some ways, the definition seems to vary. Generally, revenue sharing applies to any sort of profit-sharing which might take place in a business partnership. It's commonly seen in the work place in the form of employee profit bonus checks, for instance. Revenue sharing can be applied to online business arrangements as well.

    As it applies to content writers, revenue sharing generally applies to the sharing of site profits which are derived from certain affiliate programs and other similar online marketing agreements. Revenue sharing is also often used by e-commerce sites. In this form, the site will share some percentage of sales profits as per the terms of the partnership or agreement. Often, the partner offers advertising or some other service in return for their share of profits.

    Many sites, including big names such as AOL and Google, offer revenue sharing. This is a wide, almost blanket term which might apply to any number of programs, including Google's AdSense. In these agreements, you'll offer to share some of the advertising space on your site. A partner site will put links on your pages to different sites -- often other advertisers -- and both parties benefit. You'll earn revenue when your traffic uses those links, and the site placing the ad is selling all sorts of ad space to other companies. Money changes hands, and everyone is left satisfied to a certain degree. Revenue sharing is just that: the sharing of revenues and profits between parties.

    It's common for sites with a whole lot of content -- sellable keywords -- to hire writers for the text creation. It's also a common practice to share profits from revenue sharing programs with these writers; it's their compensation for the words they produce. But will revenue sharing work for you, and your site?

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