2 Revenue Sharing Agreement Examples in MS Word, Pages, PDF

Revenue Sharing Agreements have proven to be very helpful for many companies. In fact, these types of agreements have been around for quite some time and they are used in different industries. For example, they are often used between small companies that manufacture consumer products like food and consumer goods. Also, there are times when companies share resources like water or oil.

2 Revenue Sharing Agreement Examples in MS Word, Pages, PDF

2 Revenue Sharing Agreement Examples in MS Word, Pages, PDF

Revenue sharing agreement is actually a contract between two companies where each company agrees to divide up the revenue produced by their respective firm. Basically, it prevents each side from Holding excessive amounts of money, especially if both the companies’ assets take a big hit. However, you should keep in mind that there are some cases where these agreements can help the company without hurting each other. One good example would be if the company producing the product takes a hit and the sharing company takes care of the damages.

There are certain factors that need to be considered when signing up for Revenue Sharing Agreement. The first thing to consider is the amount that is being shared. You should be sure that the amount being shared is enough for the firm to absorb its losses without getting much in return.

Another thing to consider is who the share holder is. Here, it is important to put in mind that there are two types of share holders: those that are directly involved in the production and those that are indirectly involved. If the production firm has more employees and produces more products, then its share holder will be the one that handles the products for the company. Meanwhile, if the firm only has one employee, then the share holder will be the one that sells the products to customers. It is for these reasons that it is important to be clear as to who the share holder of a company is. Revenue Sharing Agreement

Another important consideration is the kind of products that are being produced. Here, the company must specify what products are being licensed to be sold and at what price. This is needed so as not to confuse the partner. While there are firms that do not stick to established market niches, there are some firms that specialize in certain product niches. This is one reason why the partner must be clear about the license they are getting from the company and whether it is for a new product line or an expansion of the existing ones. Revenue Sharing Agreement

When signing up for revenue sharing, it is also necessary to understand how the share is going to be paid out. The best way to do this is by having a crystal clear explanation from the company as to how it works and how the payments are going to be made. Needless to say, the details will vary from one partner to another and therefore, it is important to make sure that everything is spelled out for the partner to see.

For firms that focus on accounting and financial consulting, they may require partners to have accounting knowledge and experience in order to ensure that the agreements are transparent and fair and all parties are treated accordingly. Revenue Sharing Agreement

Get Your Revenue Sharing Agreement :

Consulting Agreement with Sharing of Software Revenues Template

Consulting Agreement with Sharing of Software Revenues Template

File Format
  • MS Word
  • Pages
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Size: A4, US

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Revenue Sharing Agreement

Revenue Sharing Agreement

File Format
  • PDF

Size: 120 KB

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