Revenue share does not automatically mean agency-funded ads
One agreement may include only a performance-based management fee while the client funds advertising. Another may have the partner fund the acquisition work. Sellovanta assesses partnerships where we fund and manage acquisition within an agreed scope. Always ask what the percentage actually includes.
Define the revenue before choosing the percentage
- Which customers and channels qualify?
- Does the calculation use invoices or actual collections?
- How are refunds, cancellations, taxes and discounts treated?
- Are repeat purchases, renewals and upsells included?
- How long does the attribution window last?
A simple illustrative calculation
Suppose attributable collected revenue is $100,000 and the agreed share is 20%. The partner receives $20,000 before paying its own costs. If its acquisition and operating costs are $16,000, the remaining $4,000 is before tax and other unallocated expenses. This is an illustration, not Sellovanta pricing or a forecast.
Both sides need viable economics
The client must retain enough revenue to pay for delivery and its own operations. The partner must earn enough to cover acquisition costs and the risk of delayed or unsuccessful sales. The right percentage depends on those conditions.
What to settle before launch
Agree on the acquisition scope, budget, reporting access, payment schedule, renewal treatment and what happens to existing opportunities if the partnership ends. An apparently attractive percentage can be misleading without those details.