Revenue sharing is a financial arrangement where multiple parties agree to distribute income generated from a specific source. This can occur in various contexts, such as between business partners, franchisors and franchisees, or content creators and platforms. The goal is to ensure that all involved parties benefit from the profits, promoting collaboration and mutual success. In many cases, revenue sharing is based on a predetermined percentage or formula that outlines how much each party receives. This approach can incentivize performance, as parties are motivated to increase overall revenue, knowing they will share in the rewards.