Understanding Revenue Share | How 70/30 can be better than 90/10

This helped a lot man thanks! Never knew this was possible I'm trying to learn more about networks and contracts!
 
Are there actually still networks that currently offer net splits? I haven't seen it anymore lately.
 
Joost said:
Are there actually still networks that currently offer net splits? I haven't seen it anymore lately.
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Not overtly in the contract. In fact I don't think any of them ever did. I still suspect that BBTV sub-networks pay BBTV first and rev share after though.
 
I am so glad I read this before getting into the Network game. It's confusing enough as it is without adding that onto it. This is the post that instantly made me create an account on this forum.
 
Tarmack said:
When being contacted, or contacting a network, if you meet their requirements you are most likely to be offered a revenue share. I don’t believe any networks offer a fixed CPM anymore. And with a revenue share there are some important questions that you need to ask the recruiter so that you understand what you’re getting.

There are two kinds of Revenue Share. The first and least complicated is the Gross Revenue share. Second is the Net split which means there is a middleman somewhere along the way who is also getting paid. This is usually a parent network (MCN) above the sub-network that has made you an offer. We know that YouTube is going to take 45% of everyones earnings, so we can disregard that immediately. Whatever is left is the Gross earnings of the channel itself, ie the amount that is going to be split by the channel and the network. Let’s say that it’s $100, so the math is as simple as possible.

So let’s take the Gross Revenue Share through to completion. If you have a remaining Estimated earnings of $100 and were offered a 70/30 revenue share, you will keep $70 and the network will keep $30. Simple stuff.

Let’s take the same example, but make it a Net 90/10 split, but with the intermediary parent network taking a 25% cut first. So we start with $100 and the parent network takes $25 first. That leaves $75 to be split by you and your sub-network. In this example, 90% of the remaining $75 is $67.50 that you get to keep.

So, you can see now how a 70/30 split can actually be better than a 90/10 split, if the 70/30 is Gross and 90/10 is Net. But the 90/10 split sounds so much better when a recruiter sends that initial message.

ALWAYS read your contract, but also make sure you ask about this specifically. It isn’t peanuts in the long term.
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Your probably someone who could enlighten me right now,

I'm in a situation where I'm partnered on a 60/40 split in the last month's I have gained a hell of a lot of views and another Network has offered me 80/20 split I told my current Network I wished to leave (not just because the revenue share was higher I find it hard to contact them and had to wait a week and sent in 2 emails!) they replied with they would offer me more and upped it to 90/10.

I have been asking what I'll be receiving.. 90% of what? - What question do I need to ask to find this information out?

Now here's where it gets fishy.. EVERY TIME I ask that question they manage to dodge it or change the subject? Also, they said they would make my new revenue split of 90% active as of the 1st of October (yes, October not November).

This, for me is alarming as they are so adamant to keep me, why? I have no idea.

I really need some advice on how to read the contract thoroughly and where it states weather a sub-network will be taking a % as well as the network it's self.

If anyone can advise me in my situation, please reply.

Many thanks, Wizz
 
You left out some specifics that would help, but here goes.

Let me know if these assumptions are correct. You were offered 80/20 by Zoomin.TV, Forela Digital or a sub-network under one of those two. You are currently with TGN getting 60/40, due to your channel being claimed by BBTV and the fact that they're making offers to keep you means you're either at the end of your contract or are on the old TGN month to month.

Some advice. It sets off alarm bells to see a change from 60/40 to 90/10 within the same network. Gives you a good indication that you've been getting screwed for a while. Second, it makes you question whether the second offer is any good.

The question you need answers is exactly what you proposed. You need to know what the 90/10 is a split of. If it is a split of the Estimated Earnings as per YouTube analytics, then it's a good offer that you should consider depending on what the rest of the contract terms are. They won't likely let you stay on a month to month when renewing new contracts now. If however they cannot or are not willing to outright answer that question (and it's a pretty simply one), then it's safe to assume that Broadband TV is getting paid first and you're splitting what's left with TGN. In that case it would be a net revenue share and since you'll never know how much BBTV is actually getting paid, I'd avoid that kind of agreement. Most of the TGN contract negotiations these days involve a small upfront payment in exchange for signing to a 2 year deal.

At the end of the day, if the network can't give you upfront honest answers then they simply can't be trusted. And if they don't answer the question "90% of what?" in a reasonable fashion, they're not worth the time of day.

On the sub-network part of your question, all the time. Every sub-network takes a piece and every parent MCN gets a piece. The question is the same as the 90/10 thing for you though, a piece of what. Most networks run a Gross Split, so YouTube takes their 45% and the remaining is split per the revenue share agreement. In the case of Zoomin for example, the 80/20. The 20% is just split half and half by the sub-network and Zoomin. Ultimately, everyone needs to get paid for the work they are putting into this kind of thing. The big concern is whether money leaves the equation between YouTube getting paid and the revenue share being applied. And it seems unlikely that TGN and BBTV are realy splitting the 10% 50/50.
 
Network shall pay to Partner eighty percent (80%) of Gross Receipts and shall retain twenty percent (20%) of Gross Receipts on platform-sold revenues (i.e. directly from YouTube, SoundCloud, DailyMotion, etc.), and shall pay to Partner sixty-five percent (65%) of Gross Receipts and shall retain thirty-five percent (35%) of Gross Receipts on "Network"sold revenues (“Revenue Share”).

Is this meens that i get 80 % of the earnings and the network get 35% of the 20% that i earned and 65% to YouTube.

This is from my contract.
 
Why would they get a cut of the revenue on SoundCloud? I'm ignorant and I am not aware of how revenue is generated from SoundCloud.
 
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