Revenue sharing

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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 Marketing programs.[1]

Another definition of revenue sharing/revenue share is when a site invites people to write articles on their site in exchange for a share of their advertising revenue. Both parties benefit: the host site gets free content for its site, and the writers earn ongoing income from their articles. The rate of earning varies dramatically from site to site and article to article, depending on the success of the site and the popularity of articles. Examples of such sites are HubPages, Squidoo, Helium and Infobarrel.

Another definition 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.

In professional sports league, revenue sharing refers to the extent of gate receipts shared between home team and visiting team. It significantly impacts to total revenue and parity, for example, Scottish Football League. In 1980, SFL changed its gate receipt sharing policy from 50:50 to 100:0 (which means home team gets all of the gate receipt). After changing the policy, the number of attendance had been plummeted, approximately from 3.2 million to 2.5 million during 1980 - 1981. Also, it enhanced the tendency of Celtic and Ranger's league dominance.[2]

In taxation[edit]

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.[citation needed]

In Canada, revenue sharing refers to the practice in which one level of government shares its revenues with a sub-jurisdictional government. For example, the Government of Canada has a revenue sharing agreement with the provinces for gasoline taxes it collects.


References[edit]

  1. ^ AffStat Report 2007 — a study based on survey responses from almost 200 affiliate managers in the marketing industry
  2. ^ Jennett, N. (1984). Attendances, Uncertainty of Outcome and Policy in Scottish League Football. In T. Barmby, M. Chalkley, T. Kirsanova, G. Koop, & C. Montagna (Eds.), Scottish Journal of Political Economy (vol. 31, pp. 176 -198). Hoboken, NJ: Wiley-Blackwell.