The Differences Between Affiliate Marketing and the Revenue Sharing Model
At first glance, these two models might seem quite similar — money only gets shared when there’s a result. With Affiliate Marketing, the person who drives the sale earns a commission — usually a percentage that varies by company or industry. In a Revenue Sharing Model, once revenue is generated, the business splits a portion with its partner — someone who actively contributes to achieving that result.
This “pay when there’s revenue” setup makes both models attractive. It helps lower fixed costs, share risks, and boost chances of success.
But once you dive into how each model is executed and the level of commitment involved, you’ll see they’re really quite different.
1. How They Work
Affiliate marketing is like a “plug & play” deal. The brand provides codes, links, content or banners, and you use your own strengths and audience to get the word out. It’s a great way to quickly expand reach without needing deep coordination between the two parties.
Revenue sharing, on the other hand, is a strategic partnership. Both sides collaborate closely — from planning and ideation to execution, testing, and optimization. It’s not just about generating sales; it’s about working together to uncover and maximize long-term growth opportunities.
This often involves a cross-functional team — including ads specialists, content creators, designers, data analysts, and more. Instead of handling a single piece of the puzzle, the partner becomes deeply involved in the business, helping to improve and scale revenue continuously.
2. Level of Commitment
Affiliate relationships are usually transactional — you bring in a sale, you get paid. Affiliates can promote multiple brands at once and switch if something’s not working. Since there’s no long-term strategic or operational commitment, the relationship tends to be short-term and flexible.
Revenue sharing requires a much deeper level of commitment. It’s a long-term partnership built on shared goals, mutual accountability, and a joint effort to build something sustainable. These partners aren’t on the sidelines — they’re an extension of your team. When revenue goes up, both sides benefit. When things fall short, both sit down to troubleshoot and adapt.
So, if your goal is to grow quickly without strings attached, Affiliate Marketing might be the way to go. But if you’re looking for a strategic partner — someone who will co-own the process, share the risk, and grow with you — Revenue Sharing is the better choice.
In fact, in some cases, many Revenue Sharing partners even suggest running affiliate campaigns as a supporting channel to drive extra sales for your business.
Curious if a Revenue Sharing Partnership makes sense for your market or industry? Stick around for the next post in this series!
Share this article
Connect with me
Most read
Revenue-sharing Model