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Revenue Sharing

A marketing partner brings in customers for a cut of sales, a landlord takes part of the gross, or an app developer splits subscription income with a platform. Each is a revenue sharing deal, and each depends on a definition someone wrote quickly.

Reviewed

01 GUIDE

Revenue Sharing: what usually happens

What tends to be disputed

The most common disagreement is over the base: gross receipts or net, and if net, after which deductions, refunds, chargebacks, taxes, and platform fees. Timing comes next, including when revenue counts and what happens to payments collected after the agreement ends. Attribution is hard when several channels touch the same customer. Some arrangements also raise questions beyond the contract, because depending on how it is structured, sharing revenue can resemble a partnership, a franchise, or an investment. Certain licensed professions also restrict sharing fees with people outside the profession. A side letter or an email changing the split can also become part of the bargain, so collect everything that touched the terms.

Building a verifiable record

Revenue sharing depends on information one side controls, so reporting and audit rights are central. The agreement should say what reports are delivered, how often, in what detail, and how the receiving party can inspect the underlying records. Keep every statement received, every payment, and all correspondence questioning figures, and note when a discrepancy was first raised, since some agreements limit how far back an audit can reach or require objections within a set period. If you are the reporting party, keep the data behind each statement and not only the summaries.

Drafting and dispute review

When drafting, we work through realistic scenarios using the numbers your business actually produces, which tends to expose ambiguities a plain-language definition hides. We also look at exclusivity, termination, and payments after termination, because a share that continues after the relationship ends is a frequent source of disagreement. For an existing dispute, we review the definitions, the reporting history, and the audit clause, then assess whether an audit, a negotiated reconciliation, or a formal claim is the sensible next step. Regulatory questions raised by the structure are better addressed before money starts moving. Agree as well on how the payments will be reported for tax purposes, so both sides work from the same figures.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

03 HOW WE WORK

Client-centered service across jurisdictions

Global Coordination & Expertise

We deliver coordinated and effective legal services to our clients, utilizing our extensive legal resources and experienced attorneys in our well-integrated global network. Through our Washington D.C. and New York offices, together with our alliance

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Our attorneys are experienced in both domestic and international matters and, with fluency in various languages, provide clear and consistent communication at every stage of your legal process.

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Client service lies at the heart of our operations. From the initial consultation, we prioritize understanding your situation, listening to your goals, and providing regular updates and strategies tailored to your individual case.

Multidisciplinary & Efficient Solutions

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04 OFFICES

Where we meet clients

Consultations are available in person or remotely.

New York

285 Fulton Street, New York, NY 10007
(855) 529-7557

Washington, D.C.

Suite 985, 1717 K Street NW, Washington, DC 20006
(855) 529-7557

Los Angeles

1901 Avenue of the Stars, Suite 820, Los Angeles, CA 90067
(424) 561-7557

Attorney Advertising. This page is general information about revenue sharing and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.