What is Revenue Sharing?
Revenue Sharing
Revenue sharing is a breath of fresh air to the network marketing industry, it’s one of the newest compensation models now available in online business and people are getting great results.
How revenue sharing works is a company will share its profits with its affiliates, which makes it easier for the affiliates to earn an income more immediately than in traditional multi level marketing companies that do not have a revenue sharing model. Some companies will share as much as 50% or more of their profits with their affiliates; therefore, it is not even necessary to recruit other affiliates into the company; even though having a down line does assist with earning more. The great thing about the revenue sharing approach is that once others see you earning money without recruiting, they seem to want to follow your lead.
With a revenue sharing company compensation is paid to those who meet the qualification required.
In a traditional MLM company qualification usually means a certain number of team members (recruiting) and a certain amount of volume (sales) and if you don’t achieve these qualifications you don’t get paid. With traditional MLM you DO need to be a good recruiter and salesperson to have success. It’s a fact.
With a revenue share company the compensation plan qualification requirements are usually very simple. It is a physical task that may need to be performed from placing ads online, to promote a company or service to simply watching ads or websites to assist in website traffic generation. The money paid out in revenue share companies is generated from online sales, often a penny auction or bargain retail store or maybe from other services that the company may provide. The reason for the popularity of the revenue sharing system is the simplicity of the online work that pays well and the low entry costs.
Other than the percentage paid from pools,if you are a great recruiter or sales person then there are always additional ways to make money similar to direct sales, MLM type sponsoring or affiliate sales. Again, the revenue sharing company is paying the marketer to help build the business through sales and building the customer base.
Is Revenue Sharing for you?
The test of whether or not a revenue sharing company is the right home business for you can be answered with a few questions.
- Do you have little time to build a home business (or additional home business)?
- Have you tried MLM but failed to build a downline?
- Do you have no time, money or interest to purchase a marketing license or build up a website?
- Could you consistently post or view an ad daily or assign the task to an associate if it were practically automated?
According to several reviews and surveys, revenue sharing companies are paying the best to the most which would explain their popularity.
