Revenue sharing
Encyclopedia
Revenue sharing has multiple, related meanings depending on context.
In business, revenue sharing refers to the sharing of profits
and losses among different groups. One form shares between the general partner(s) and limited partners in a limited partnership
. Another form shares with a company's employees, and another between companies in a business alliance.
On the Internet, revenue sharing is also known as cost per sale
, and accounts for about 80% of affiliate compensation programs
. E-commerce web site operators using revenue sharing pay affiliates a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party cost that the customer pays) generated by customers whom the affiliate refer via various advertising methods. Another form of online revenue sharing consists in people working together and registering online in a way similar to that of a corporation, and sharing the proceeds. A third form of revenue sharing on the internet consists of enticing internet users to sign up and create content by offering a share of advertising revenue.
United States government
revenue sharing was in place from 1972-1986. Under this policy
, Congress
gave an annual amount of federal tax revenue
to the states
and their cities
, counties
and townships
. Revenue sharing was extremely popular with state officials, but it lost federal support during the Reagan Administration
. In 1987, revenue sharing was replaced with block grants in smaller amounts to reduce federal revenues given to states.
In business, revenue sharing refers to the sharing of profits
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
and losses among different groups. One form shares between the general partner(s) and limited partners in a limited partnership
Limited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
. Another form shares with a company's employees, and another between companies in a business alliance.
On the Internet, revenue sharing is also known as cost per sale
Pay Per Sale
Pay-per-sale or PPS is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement...
, and accounts for about 80% of affiliate compensation programs
Affiliate marketing
Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts...
. E-commerce web site operators using revenue sharing pay affiliates a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party cost that the customer pays) generated by customers whom the affiliate refer via various advertising methods. Another form of online revenue sharing consists in people working together and registering online in a way similar to that of a corporation, and sharing the proceeds. A third form of revenue sharing on the internet consists of enticing internet users to sign up and create content by offering a share of advertising revenue.
United States government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
revenue sharing was in place from 1972-1986. Under this policy
Policy
A policy is typically described as a principle or rule to guide decisions and achieve rational outcome. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol...
, Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
gave an annual amount of federal tax revenue
Tax revenue
Tax revenue is the income that is gained by governments through taxation.Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be an alternative third-party...
to the states
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
and their cities
City
A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...
, counties
County (United States)
In the United States, a county is a geographic subdivision of a state , usually assigned some governmental authority. The term "county" is used in 48 of the 50 states; Louisiana is divided into parishes and Alaska into boroughs. Parishes and boroughs are called "county-equivalents" by the U.S...
and townships
Township (United States)
A township in the United States is a small geographic area. Townships range in size from 6 to 54 square miles , with being the norm.The term is used in three ways....
. Revenue sharing was extremely popular with state officials, but it lost federal support during the Reagan Administration
Reagan Administration
The United States presidency of Ronald Reagan, also known as the Reagan administration, was a Republican administration headed by Ronald Reagan from January 20, 1981, to January 20, 1989....
. In 1987, revenue sharing was replaced with block grants in smaller amounts to reduce federal revenues given to states.
See also
- HubPagesHubPagesHubPages is a website designed around sharing advertising revenue for user-generated articles and other content on specific subjects.- History :...
- SquidooSquidooSquidoo is a community website that allows users to create pages for subjects of interest. Squidoo had 1.5 million hand-built lenses .-History:Development on Squidoo started in 2005, launching a beta testing period in October of that year...
- http://www.meebuu.com/content/google-adsense-revenue-sharing MeeBuu
External links
- A match between suppliers and agents in real life - Suppliers pay commission for sale.Agents are people who know they can make a one-time sale.Unlike PPS, the sale is not generated by an advertisement, but by a real life selling effort.
- A categorized list of internet revenue sharing sites - Internet revenue sharing sites share via a variety of income sources, including Google Adsense and Amazon Associates programs.