5 Key Criteria for Choosing the Right Clients in a Revenue Sharing Model
After sharing my first two posts on the Revenue Sharing Partnership model, I received quite a few messages from friends and business partners. Many were excited — and for good reason. This model can:
– Reduce fixed costs
– Share the risks
– Increase the chances of business success
– Create a more balanced, win-win collaboration
Here’s the idea in simple terms:
A partner like IMP accepts lower upfront fees to share the burden with the business — a mutual “trust deposit,” if you will. In return, we only earn more when we help the business grow beyond their current revenue baseline.
It’s a smart approach, especially in today’s challenging economy, where competition is fierce and tech and sales channels are constantly evolving.
But… is this model a fit for every business?
Not quite.
After nearly 5 years of applying this model across different brands in Vietnam, the US, Canada, and Europe, we’ve realized that for there to be actual revenue to share, the client side needs to meet a few key criteria. Here are the 5 most important ones:
1. Transparent Data
Only when data is clear and accurate can we identify bottlenecks and find optimization opportunities that lead to real growth.
If the information is incomplete or incorrect — especially revenue data, which directly ties into each party’s benefit — then full collaboration becomes extremely difficult.
2. Long-Term Thinking and Big-Picture Focus
Some initiatives will drive quick wins — and that’s great. But sustainable growth requires time to build systems, nurture customer databases, and develop the brand.
Short-term thinking often leads to debates over “who brought in which sale.” In reality, attribution isn’t always clear. A customer might find you on Google, wait a few weeks, and then buy through a different channel.
Instead of wasting energy on tracking credit, it’s more productive to agree on a fair revenue share and focus on growing the overall pie. When growth happens, both sides can always revisit and adjust the terms together.
3. Lean Structure, Fewer Layers
In today’s world, we often face too little data but way too many opinions. That’s why speed matters. We need to get things out there, test assumptions, get real feedback, and keep improving.
And to do that? You need a lean setup. Fewer layers. Faster chats. Quick decisions. Get aligned, then go.
The best-case scenario? The founder, CEO, or someone with decision-making power works directly with the execution team. That kind of close collaboration helps everyone get on the same page faster and move in the right direction from day one.
But if every decision has to go through too many layers of approval — endless meetings, back-and-forth discussions, waiting for sign-offs — things slow down fast. That means lost time, missed opportunities, and higher costs for both sides.
4. Data-Driven, Not Gut-Driven
In a revenue-sharing partnership, numbers are our compass. Decisions should be based on what works, not just personal preferences like “I think this photo looks better” or “I prefer this wording.”
Of course, core brand values must be protected. But wherever we can adapt to the market, we should — to drive results faster and smarter.
5. Open-Mindedness and Mutual Respect
Revenue sharing is very different from hiring an internal team or outsourcing to an agency. It’s a real partnership where both sides share the work — and the wins. Businesses must bring their knowledge and insights to the table, while also trusting the expertise of their partners. When disagreements arise, both sides should take time to listen and persuade one another, and once a direction is set, commit fully to executing it together.
Those are the 5 key criteria that make a Revenue Sharing Partnership truly work. It may sound simple — but it’s not easy. Why? Because these traits are deeply rooted in a company’s culture, and more often than not, shaped by the mindset of the founder or CEO. Choosing the right client for this model also means choosing a leader who believes in shared success and mutual commitment. Only when both sides are aiming high — 2x, 5x revenue growth, or more — can we create the drive and rewards big enough to fuel the long journey ahead.
Want to learn more about this model — its pros, cons, and what types of businesses it’s best for? Stay tuned for upcoming posts!
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