Revenue Sharing Programs: How To Manage Risk & Maximize Rewards
Revenue sharing programs offer Internet marketers a way to make money – potentially, a lot of money – from their advertising campaigns, whether or not those campaigns result in any sales.
How Revenue Sharing Programs Work
Revenue sharing programs sell advertisers “ad packs” or “credit packs.” Credit pack owners usually have to log in every day and view ten ads or so to qualify for that day’s share of the profits. (I don’t recommend any program that does NOT require members to log in and click ads!)
Typically, each ad pack you purchase will deliver a 110% (or higher) profit share.
So if an ad pack costs $10, and all goes well, with a 110% revenue-share, it will eventually earn $11 in profit share. In short, you are getting paid to promote your business.
A well designed revenue share program will offer a range of advertising services separate from the revenue-sharing ad packs. Such advertising services may include banner and text ads, log in ads, pop up ads, off-site ads, PPC ads and so on.
Profits generated from sales of those ads contribute to the revenue-sharing pool and the sustainability of the program.
Additional revenues can be generated through membership fees and vacation fees (members can buy the right to earn revenue share on their ad packs without having to log in and view ads).
Members of revenue sharing programs can earn money by buying ad packs and also by referring others into the program, typically 10% on all sales generated by each referral. Since active referrals are very likely to become repeat-buyers of credit packs, you can quickly build up a lucrative stream of residual income from your referrals.
A well-designed and managed revenue sharing program can make a lot of money for its members in a relatively short amount of time.
Risk – And How To Handle It
However, as with any other business enterprise, revenue sharing programs are not without their risks.
The biggest risk is that you could build up a big position in a program, buying a lot of ad packs with your own cash only to see the program suddenly shut down before you have withdrawn enough to cover your start up costs.
A lot of people who buy into revenue sharing programs seem to forget that they do not own the program!
If you do not own the program, you cannot control what happens to it! That applies to any affiliate marketing or network marketing program, and any other online service you use to build your business.
Yet, to benefit from the profit potential of any revenue sharing site you do need to build up a large number of credit packs and so you have to be willing to expose yourself to some degree of risk in the first place.
The obvious answer is to spread your risk over several revenue sharing sites, but in such a way that you do not lose FOCUS.
I recommend that you choose ONE revenue sharing site that will be your PRIMARY PROGRAM. Focus on building up a position as fast as possible in that program.
At the same time, choose one or two other sites to build up more slowly.
Let’s say you have $500 start up cash to put into your three revenue sharing sites. Here’s how I suggest you divide up your cash:
- $300 into your primary site.
- $100 into each of your two secondary site(s).
- Set a clear target for your primary site. Work out how many credit packs you want to have actively earning revenue share for you in the next three months.
- Then focus most of your efforts on PROMOTING your primary program.
A good three-month target to aim for would be to earn $100 per day from revenue-sharing and referral commissions.
Once you hit your credit pack target for the three month period in your primary program, it is time to move on to the next stage so that you can begin reducing your exposure to risk.
Here’s what to do:
- Keep your primary program growing, but at a slower rate, and withdraw cash each month. (Note: MyPayingAds has a 70/30 repurchase/cash-out structure built in, so it is easy to switch from a 100% repurchasing in the first 90 days, to a 70/30 repurchase/cash-out thereafter.)
- Now focus on one of your secondary program. Make it your new “primary” program, and follow the steps, above, for building your primary program over a three month period.
- Rinse and repeat with your third revenue share program.
- After nine months you will have three revenue sharing programs producing daily income for you, and your exposure to risk will be ZERO. Now go back to step 1 and repeat the process to build up your position and speed up your rate of growth.
Reap the Rewards!
If you follow those steps, and if all goes well, you will have three revenue share programs working hard for you. You will have:
- Three sources of ever-increasing traffic for your business advertising needs.
- Three sources of online cash you can draw on every month, each earning $100 per day for you.
- Less and less exposure to the risk of losing your start-up advertising cash.
Once you have achieved your three-month goals for all three revenue sharing programs, you can build to the next level in each one. Again, always make ONE site your primary focus while maintaining the others as your hedge.
I believe this approach offers the best combination of managed risk, diversity and FOCUS to build multiple revenue sharing income streams and delivering ever increasing amounts of cost-free traffic to my landing pages over time. It is the approach I am using to build my traffic and income, but currently with just a couple of revenue-sharing sites as well as The Online Ad Network (which is a good-quality banner and text advertising site with no profit-sharing, but with an excellent affiliate program):
- My Paying Ads (Worldwide membership)
- MyAdvertisingPays (Worldwide excluding the USA)
- The Online Ad Network (Worldwide membership)
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In offering advice HBW will sometimes link out to appropriate websites. Some of those links will be affiliate links. HBW will receive a commission from any website that traces the sale back to HBW via the affiliate link.