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1. What is the Revenue sharing agreement? 

There are instances where two companies collaborate with each other for a particular project but they do not establish themselves into one legal entity, say, joint venture or partnership form. Therefore, the entities who wish to do business with each other without establishing any legal structure, enter into a revenue-sharing agreement with each other. It is a contract outlining the terms of a Revenue sharing arrangement, where two businesses decide to split the profits of a product or service. It defines the roles and responsibilities of each party, the skills they will introduce in business, the risk they will take, and what will be the ratio of profits between them. 

2. Why is it important? 

a. This agreement will help avoid confusion and disputes down the track.

b. It clearly determines what are the roles and responsibilities of the parties and what penalty they have to pay in case they could not fulfil their part of obligations.

To access this Sample Agreement / Template, please fill in the details below and it will be emailed to you shortly.