Revenue Sharing or Cost Per Sale (CPS) marketing is very closely associated with affiliate marketing and compensation programs. In fact, 80% of affiliate compensation programs are derived from revenue sharing.
Revenue sharing is when E-commerce web site operators, using revenue to advertise, pay a percentage of sales revenue (excluding tax, shipping and other third party cost paid by the customer) to the affiliate marketer for customers who have been generated by the affiliate’s advertising methods.
Another revenue sharing model is completely different than the affiliate programs. In this model, online revenue sharing is a result of people working together, and registering online like a corporation, and then sharing total proceeds.
Cost Per Sale (CPS) – Sites that sell products directly from their web site or can otherwise determine sales generated as the result of an advertising lead (affiliate) can calculate the cost-per-sale of Internet advertising.
Another definition of CPS is a pricing method which typically pays a transaction percentage for the acquisition of a purchasing customer.
There are many ways to become an affiliate or utilize affiliates in your own Internet marketing strategies. The online revenue sharing model, is basically a sales distribution system for the Internet.