Course co-production allows experts and marketers to collaborate, combining their skills to create and sell online courses. One of the most critical aspects of a successful partnership is defining how revenue is shared. A fair and transparent profit-sharing model ensures both parties stay motivated and benefit equally from the project.
Understanding how to structure revenue sharing can prevent conflicts and create a long-term, successful collaboration. In this article, we’ll explore different revenue-sharing models, factors to consider when dividing profits, and best practices for setting up a financial agreement in course co-production.
Why Revenue Sharing is Important
Since co-production involves multiple contributors, defining how profits are distributed is essential. A well-structured revenue-sharing agreement ensures fair compensation for each partner’s contribution, prevents misunderstandings, encourages long-term collaboration, and aligns both parties’ interests toward the success of the course.
A poorly structured agreement, on the other hand, can lead to disputes, lack of motivation, and financial disagreements that could harm the business.
Common Revenue-Sharing Models
50/50 Equal Split
One of the most common models is a 50/50 split, where both the expert (content creator) and the co-producer (marketer) receive equal shares of the revenue.
This model works best when both partners contribute equally, whether in content creation, marketing, or overall management of the course. It is a simple and easy-to-manage agreement. However, if one partner feels they are contributing more, they may consider a different split.
60/40 or 70/30 Split
In cases where one partner takes on a larger workload or financial investment, a 60/40 or 70/30 split may be a better option.
For example, if the co-producer is covering all advertising costs and marketing efforts, they may receive 60% or 70% of the revenue, while the expert receives 40% or 30%. If the expert has an established audience and helps with promotion, they might take the larger share.
This model ensures that the workload and financial contributions are balanced fairly.
Fixed Payment + Revenue Share
Instead of a percentage split, the expert may receive a fixed payment upfront, plus a smaller share of the revenue.
For example, the co-producer may pay the expert $5,000 for creating the course, plus 20% of the ongoing revenue.
This model is ideal for experts who want a guaranteed income rather than taking a risk on sales. However, if the course becomes highly successful, the expert may feel they are not receiving a fair share.
Revenue Share Based on Milestones
Another option is a performance-based revenue split, where the expert’s share increases as the course generates more revenue.
For example, the expert may receive 30% of revenue until the course reaches $50,000 in sales. After that, their share increases to 40%, and if the course earns over $100,000, they receive 50%.
This model encourages long-term collaboration and motivates both partners to scale the course’s revenue.
Equity-Based Model
In some cases, both partners may agree to own a percentage of the business rather than just sharing revenue.
For example, if they create a legal entity, both partners may own 50% of the brand. This model is ideal for partners planning to develop multiple courses together and build a long-term educational business.
Factors to Consider When Choosing a Revenue Model
Level of Contribution
Each partner’s role in course creation, marketing, and sales should determine the revenue split. If one person is handling a larger share of responsibilities, they should receive a higher percentage.
Financial Investment
If one partner is covering advertising costs, software subscriptions, or platform fees, the revenue share should reflect this investment. Likewise, if the expert is leveraging their existing audience for promotion, their contribution should be considered.
Ownership of the Course Content
Partners should agree on who owns the course content. Can the expert sell it separately on other platforms? Does the co-producer have the right to modify or resell it? Ownership rights impact long-term revenue distribution.
Long-Term vs. Short-Term Goals
Some partnerships focus on a single course launch, while others aim to develop multiple products together. The revenue model should align with the long-term vision of both partners.
Best Practices for Structuring a Revenue-Sharing Agreement
Create a Written Contract
A formal agreement should outline:
• The exact revenue-sharing percentage.
• Each partner’s roles and responsibilities.
• How and when payments will be made.
• Ownership rights of the course.
Having a clear, written contract prevents misunderstandings and protects both parties.
Define Payment Terms
Revenue distribution should be clearly defined:
• Will payments be made monthly or quarterly?
• Will costs like advertising and software fees be deducted before splitting revenue?
• Which payment method will be used (bank transfer, PayPal, Stripe)?
Clarifying these details in advance ensures smooth financial management.
Use Transparent Revenue Tracking
Both partners should have access to financial reports to maintain trust. This can be done using:
• Google Sheets or Excel for revenue logging.
• Payment dashboards from platforms like Hotmart, Teachable, or Kajabi.
• Affiliate tracking software if commissions are involved.
Plan for Future Changes
The agreement should include:
• What happens if one partner wants to leave the project?
• Can the revenue split be renegotiated if sales increase significantly?
• What happens if the course stops generating sales?
Preparing for these scenarios prevents conflicts later.
Choosing the Right Revenue Model for Your Partnership
A well-structured revenue-sharing model ensures both the expert and the co-producer benefit fairly from the partnership. The key is to choose an agreement that reflects each partner’s contribution, financial investment, and long-term goals.
If both partners contribute equally, a 50/50 split is fair. If one partner handles most of the work or invests more money, a 60/40 or milestone-based model may be better. No matter which model you choose, having a clear contract and transparent financial tracking will set the foundation for a successful and profitable collaboration.