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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? - Benefits of Revenue Sharing


    (Page 2 of 4 )

    Revenue sharing is a very simple way to compensate your writers for their continued content. You can actually make them responsible for their own profits by having them sign up online for revenue sharing programs. They will then be in charge of collecting their own payments; you do nothing but provide them with a link. They'll continue to create for you and your site will get increased traffic through your ad sharing agreement and constant new content. In some cases, the mere presence of such programs will help you boost your page rankings in the search engines. This will create more traffic, and this will help everyone benefit.

    With very little work, you can pay for content without really paying for any content. The writers will be working for the revenue they earn by writing; the more they write, the more they earn. This gives them a great incentive to produce a larger quantity of good content, and you won't have to reach into your own pocket to provide payment for their work. You can place other revenue sharing programs on your site if you wish to earn extra money for yourself, but you will not have access to the profits enjoyed by your writers.

    Drawbacks to Revenue Sharing

    Revenue sharing programs are profitable, it's true, but in most cases they do not provide an extraordinary amount of money. Even a great deal of content may not produce a large number of page hits, and page hits are what matter in these programs. More traffic means more profits, but it isn't always easy to draw in great amounts of traffic. Revenue sharing will offer a few pennies for a certain number of clicks -- three cents for one thousand clicks, for instance. This could add up to be a lot of money...or it could add up to be nothing but more pennies. This could create very meager compensation for the ones who create the content.

    Highly established, experienced writers will not want to work on the promise of compensation alone -- and in a very real way, that's what revenue sharing is. There is no guarantee or minimum amount, which means writers are working on the mere hope of tempting traffic. Some writers may find themselves earning nothing, or next to nothing, for their efforts. There will be a lot of instability with revenue sharing profits, and this is not very appealing to workers. You may find it hard to hire high-caliber writers by offering revenue sharing programs alone as compensation.

    You may choose instead to offer revenue sharing not as a salary but as a perk to employees. Pay a flat fee for each piece of content, but add revenue sharing as a special incentive for them to continuing producing quality content for your pages. Adding extras like revenue sharing incentives can add quality to your content. When writers are striving to do their best in order to earn rewards, your site benefits. The writers are still somewhat in charge of their own destinations, but have the stability and promise of receiving a set fee for work.

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