Managing payments and revenue distribution manually in a course co-production can be time-consuming, error-prone, and even lead to conflicts. Automating these processes ensures transparency, efficiency, and accuracy, allowing both the producer (content creator) and the co-producer (marketer, strategist, or investor) to receive their fair share of profits without delays or disputes.
This article explores how to set up an automated payment and revenue distribution system to streamline financial transactions in course co-production.
1. Why Automate Payments and Revenue Sharing?
Manual payment management often results in delays, miscalculations, and disagreements. Automating payments brings several advantages:
✅ Eliminates payment disputes – Ensures that revenue is distributed fairly and on time.
✅ Saves time and reduces errors – No need to track payments manually.
✅ Increases transparency – Both partners can track real-time earnings.
✅ Supports scalability – Allows for expansion without financial bottlenecks.
💡 Pro Tip: Automated systems also improve tax reporting and financial compliance, making bookkeeping easier.
2. Choosing the Right Payment Automation Platform
Several payment platforms offer automated revenue-sharing features, making it easy to split earnings between co-producers.
Best Platforms for Automated Revenue Distribution:
📌 Hotmart – Supports automatic revenue splits between partners and affiliates.
📌 Kiwify – A Brazilian alternative with built-in profit-sharing tools.
📌 Stripe Connect – Allows businesses to split payments between multiple users instantly.
📌 PayPal for Business – Offers multi-user payment solutions with automated transfers.
📌 Gumroad – Ideal for individual course creators looking for simple revenue splitting.
💡 Pro Tip: Choose a platform that integrates seamlessly with your course hosting platform (Teachable, Kajabi, Thinkific, etc.).
3. Setting Up Automated Revenue Splits
Each platform has different ways to set up revenue-sharing rules. Here’s how to do it on some popular platforms:
How to Set Up Revenue Splits in Hotmart & Kiwify:
📌 Go to Monetization Settings and select Co-Producer Agreement.
📌 Add the co-producer’s email and define percentage splits (e.g., 50/50, 60/40).
📌 The system automatically sends payments based on course sales.
How to Automate Payments with Stripe Connect:
📌 Set up a Stripe account and create a Connected Account for your co-producer.
📌 Define payout percentages for each partner.
📌 Stripe automatically splits transactions and deposits payments directly into each account.
Using PayPal for Automatic Revenue Sharing:
📌 Use PayPal Payouts API to automatically distribute earnings.
📌 Alternatively, set up scheduled payments to send revenue on a weekly or monthly basis.
💡 Pro Tip: Always test the payment automation system with a small transaction before launching.
4. Managing Expenses & Profit Distributions
In some co-production agreements, expenses (e.g., ad spend, platform fees, freelancers) are deducted before splitting profits.
How to Automate Expense Deductions:
📌 Use Google Sheets + Zapier to track revenue and automatically calculate net profits.
📌 Create a shared account (Wise, Revolut) where marketing costs are deducted before revenue distribution.
📌 Platforms like Xero or QuickBooks can track income and automatically split expenses among partners.
💡 Pro Tip: Have a clear agreement on who covers expenses and how they are deducted before profit distribution.
5. Handling Affiliate Payments Automatically
If you use affiliates or influencers to promote the course, automating their commission payouts is essential.
Best Platforms for Affiliate Payment Automation:
📌 Hotmart & Kiwify – Automatically distribute commissions to affiliates.
📌 ThriveCart – Built-in affiliate payout system with instant payments.
📌 Teachable & Kajabi – Support affiliate management with manual or automated payments.
💡 Pro Tip: Use tiered commissions (e.g., 30% for standard affiliates, 50% for top partners) to incentivize high performers.
6. Setting Up a Transparent Payment Tracking System
To maintain trust and transparency, both partners should have real-time access to financial data.
Best Tools for Tracking Revenue & Payments:
📌 Google Sheets + Zapier – Automatically update revenue reports.
📌 Xero & QuickBooks – Automate financial reports and tax calculations.
📌 Stripe Dashboard – Provides real-time sales and payout tracking.
📌 Hotmart Analytics – Shows detailed sales and commission reports.
💡 Pro Tip: Schedule monthly financial review meetings to ensure clarity and alignment.
7. Managing Taxes and Legal Compliance
Automated payments also help simplify tax reporting and legal obligations.
Key Tax Considerations for Course Co-Producers:
📌 Revenue Reporting: Each partner must declare their income separately.
📌 VAT/GST Compliance: Platforms like Hotmart and Teachable handle sales tax collection.
📌 Legal Contracts: Clearly define tax responsibilities in the co-production agreement.
💡 Pro Tip: Consult an accountant to ensure compliance with local tax laws.
8. Handling Refunds and Chargebacks
Since automated payments split revenue instantly, handling refunds can be tricky.
Best Practices for Managing Refunds in Co-Production:
📌 Set a refund reserve – Keep a portion of earnings aside for refund requests.
📌 Use shared accounts – Refunds are deducted from both partners’ shares proportionally.
📌 Clearly define refund policies – Avoid disputes by setting rules on who absorbs refund costs.
💡 Pro Tip: Choose a course platform that automates refund processing to minimize manual work.
Final Thoughts: Automating Revenue Sharing for a Successful Co-Production
By automating payments and revenue distribution, course co-producers can save time, prevent financial disputes, and ensure smooth transactions.
Using payment platforms, tracking tools, and automated revenue splits, co-producers can focus on growing their business instead of handling financial headaches.