Why Is E-commerce The Perfect Fit For Revenue Sharing Model?
Many people think the Revenue Sharing model can be applied to any company — simply because it’s based on “you bring in revenue, we split it.”
After 5 years of running this model with companies across different industries such as education, real estate, beauty, tech, and more, I’ve come to realize that’s not really the case.
My current conclusion? E-commerce is still the best fit for the Revenue Sharing Model. And here are the two main reasons why:
1. Automated transactions — minimal human dependency
In many industries, the buying journey is heavily influenced by people: the skills of the sales team, how fast they respond to messages, even the CEO’s relationship with the client,…
Some businesses generate leads and pass them on to their sales reps, but the outcome often depends on each individual’s mindset and emotional state. That creates major roadblocks for scalable growth.
Sure, you might be lucky enough to have one star salesperson, but how easy is it to find nine more just like them to 10X your revenue?
E-commerce works differently. The customer journey is largely automated. Think: see an ad → click → browse → decide → pay. No need for human consultation. Less room for error. Lower risk of lost sales.
2. Clear data — easier to optimize and scale
In eCommerce, every customer action leaves a trail. From the moment they see an ad, click through to a landing page, add a product to cart, check out, or even come back for a repeat purchase — everything is recorded in detail. There’s no need to guess or rely on gut feeling.
You know exactly how much was spent today, how much was earned, which products are converting best, and which steps in the funnel are underperforming. Every number is a signal that helps you build data-driven strategies for growth.
That’s why eCommerce stands out. It’s transparent. It’s trackable. It’s scalable. And for a Revenue Sharing model to work well, that’s the kind of environment you need. That’s been my experience.
But I’d love to hear your thoughts. Are there other industries where you think Revenue Sharing could thrive? Let’s discuss together.
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