Revenue Sharing
Revenue sharing means allowing the supplier to share in business opportunities and risks. The basic precondition is that the supplier must indeed play a significant role in the success or failure of the business. As the sales revenue of a product is a clearly defined factor, it provides a solid basis for the partnership between customer and supplier.
Either the customer or the supplier may strive for revenue sharing, though with different goals in each case. The customer takes the initiative when the supplier has particularly attractive products and services that the customer wishes to obtain exclusively for itself. The supplier takes the initiative when it launches a new product or service and is looking to the customer to act as a multiplier in establishing new sales channels.