Revenue Sharing Agreement Template

REVENUE SHARING AGREEMENT TEMPLATE FAQ

What is a revenue sharing agreement?

A Revenue Sharing Agreement is a contract where two or more parties agree to share revenue generated from a product, service, deal, or partnership. It clarifies what counts as “revenue,” what is excluded, how revenue is reported, and when payments are made.

How is revenue sharing different from profit sharing?

Revenue sharing is typically based on top-line revenue (money received) before most expenses are deducted. Profit sharing is based on revenue minus expenses. Revenue sharing is often simpler and more predictable, while profit sharing can be fairer when costs vary.

When should you use a revenue sharing agreement?

Use it for referral partnerships, affiliate deals, co-branded products, distribution arrangements, IP licensing, app marketplace relationships, or any collaboration where one party earns a percentage of sales or subscription revenue.

What should be included in a revenue sharing agreement?

A clear agreement includes: revenue definition, included/excluded revenue, share percentages, reporting frequency, audit rights, payment schedule, refunds/chargebacks handling, taxes, confidentiality, and termination rules.

How do you handle refunds, chargebacks, and discounts?

Many agreements reduce “net revenue” by refunds, chargebacks, discounts, credits, and payment processing fees. The key is to define these deductions clearly and apply them consistently.

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