Revenue sharing
Revenue sharing is
- a form of remuneration for employees of a company,
- a fruit drawing on corporate actions ( value and trading ) without primary function of the profitability of the company.
Employee participation
Here, the employee receives part of the entire turnover or the turnover generated by him and is intended to be motivated to make a contribution to the economic success of the company. In many cases , however, it makes more sense for the owner to share in the profits , so that not only the sale of the products, but also the overall profitability becomes the goal of the employee's efforts. Therefore, managing director of companies or branch manager rather than share in the profits of sales. Revenue sharing is more intended for salespeople, as the owner has often firmly calculated the profit margin.
The revenue sharing can also be staggered depending on the revenue. Example: Up to a turnover of 250,000 euros, the seller receives 5%, if the turnover exceeds 250,000 euros, the seller receives 8% of the turnover. At the end of the year, therefore, particularly good prices are often made because the sellers still want to exceed a sales threshold.
This form of remuneration - combined with a fixed salary - can be found in almost all advice-intensive sectors for salespeople, especially when selling financial products and high-quality capital goods. Furthermore, the share of sales is also applied to independent commercial agents - here, however, as a rule, no fixed amount is paid, but a correspondingly high share of sales.
Landlord participation
Revenue sharing is also common when renting out particularly attractive commercial buildings in prime locations. Example: Minimum rent for a McDonald's branch 12,500 euros, if more than 20% of sales.
Revenue sharing is also common for value-added services in the telecommunications sector . For example, telecommunications companies get paid for their services from operators of toll numbers through a share in the turnover.
A special form can be found, for example, in the direct sales-promoting use of revenue shares. In some cases, the sending of SMS dialogues is supported by a share of the turnover. The mobile phone user sends an SMS, motivated, for example, by a television station that encourages an SMS vote or a competition. The sender then shares in the SMS turnover.
Tax treatment
For employees, the share of turnover is part of the income from non-self-employed work and is subject to wage tax deduction . If an entrepreneur is involved in the sales of another company, the sales share increases the operating income , is possibly subject to sales tax and is part of the income from commercial operations or the income from self-employment .
