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Guide · 3 min read · updated

Agency revenue share: how to agree a fair split

Most disagreements between agencies and creators are not about the percentage. They are about what the percentage is taken from, who pays for chatters and promotion, and what happens with refunds or when one side wants out. Agreeing those points up front, in writing, matters more than the number itself. This guide lists what to settle. It is general information, not legal advice; for a contract, talk to a lawyer where you live.

Agree what the share is taken from

A share of gross (what fans paid), of net (what reached the creator after the platform’s share) and of net after refunds are three different amounts. The same percentage can mean very different money depending on which one the agreement names. Write the base down in plain words, with an example.

A worked example

The figures here are only an example, not a typical rate. Say fans paid $10,000 in a month and, after the platform’s share and refunds, $7,500 reached the creator. An agreed 40% of that $7,500 is $3,000 for the agency, leaving the creator $4,500. The same 40% of the $10,000 gross is $4,000, leaving the creator $3,500.

One word in the agreement moved $1,000 in a single month. Neither version is wrong; both sides just need to know which one they signed.

Decide who pays for what

List the costs and say who carries each one. Unclear costs are the second most common source of arguments, after the base of the share.

  • Chatters and their commission
  • Paid promotion and shoutouts
  • Tools and software
  • Content production: equipment, locations, other people

Write down what each side does

Who makes the content, who posts, who answers fans, who handles promotion, how quickly each side responds. A share feels fair when both sides see the other doing what they agreed. It is also what you come back to when something goes wrong.

Fixed fee, share or both

A share ties the agency’s income to results, which suits both sides when the page grows. A fixed monthly fee is easier to plan but rewards the agency even in a bad month. Some agreements combine a smaller fee with a smaller share. Whatever you pick, agree when and how it will be reviewed.

Refunds and chargebacks

Refunds and chargebacks can arrive weeks after a payment. Agree whether the share is settled on what was paid or on what was kept, and how a chargeback in a later month is handled when the share for the original month is already paid out.

Reporting both sides can trust

Agree on one set of numbers, from one place, with gross, the platform’s share, refunds and net on separate lines. A monthly statement both sides can read removes most arguments before they start. A shared view of the account’s figures that the agency can turn off when the agreement ends works well for this.

Ending the agreement

Agree on a notice period, how the last month is settled and what happens to access. Write down that the account, its content and its fans stay with the creator, and that logins, team access and shared views are removed or changed when the agreement ends.

Put it in writing

A handshake works until the first bad month. A short written agreement covering the points above protects both sides, and having a lawyer look at it is worth the cost. Review it after the first few months, when both sides know how the work really goes.

In short

  • Name the base of the share, gross or net and before or after refunds, with an example.
  • List every cost and who pays it.
  • Agree on one monthly statement both sides can read.
  • Settle notice, the last payment and access before you start.

Keep going

More on running an agency

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