Meaning & use
revenue sharing
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Meanings
noununcountablefinance
A deal in which the total income from a project or product is divided among the partners according to agreed shares.
Grammar: Used without an or an: they signed a revenue sharing deal; the plural is rare.
Patterns
- revenue sharing between someone and someone
- a revenue sharing agreement
The app developer and the platform agreed to revenue sharing on every subscription.
Under the revenue sharing arrangement, the museum keeps half of all ticket sales.
The two studios entered a revenue sharing deal for the streaming series.
noununcountableAmerican
A system in which a central government gives a portion of its tax income to lower levels of government.
Grammar: Often used as a modifier: revenue sharing funds, revenue sharing program.
Patterns
- federal revenue sharing
- revenue sharing with something
Federal revenue sharing helped small towns pay for roads and fire stations.
The city's budget depended heavily on state revenue sharing.
Mayors lobbied Congress to restore revenue sharing.
noununcountablesport
An arrangement in which a sports league pools some of its income and gives each team a portion.
Grammar: Usually appears with league names or the word system: a league revenue sharing system.
Patterns
- league revenue sharing
- revenue sharing among teams
Revenue sharing lets small-market teams compete with wealthier clubs.
The league changed its revenue sharing rules after the television deal.
Owners disagreed over how much revenue sharing was fair.
Common combinations
- revenue sharing agreement
- The revenue sharing agreement splits advertising income equally.
- revenue sharing model
- The site uses a revenue sharing model with its writers.
- federal revenue sharing
- Federal revenue sharing ended in the 1980s.
- revenue sharing between
- Revenue sharing between the studios was negotiated over months.
- revenue sharing plan
- The league approved a new revenue sharing plan.
Synonyms and how they differ
- profit sharing
- Profit sharing divides what is left after costs are paid, while revenue sharing divides income before expenses are subtracted.
- royalty
- Royalty is a payment for each use of a work or invention, while revenue sharing splits total income among partners.
- revenue split
- Revenue split names the specific ratio of the division, while revenue sharing names the arrangement as a whole.
- income pooling
- Income pooling means combining money into a common fund first, which is narrower than the general idea of dividing revenue.
Word family
Commonly confused: revenue sharing or profit sharing?
revenue sharing vs profit sharing
Profit sharing splits earnings after expenses, so partners receive less if costs are high; revenue sharing splits income before costs.
Practice
Which statement best describes revenue sharing?
Choose one answer.
Revenue sharing splits the income itself, before costs. The first option describes profit sharing, which is the tempting confusable.
Make it your own
Write a sentence using “revenue sharing”, then check it and compare it with the examples above.