Calculating Revenue Share
We’re going to start doing more deals where we share profits with writers or models. This guide is going to explain the process. The basic formula is this:
(character_x_sales / total_character_sales ) * share_percentage * revenue_received.
Let’s say we have an agreement with Cindy to share 5% of the revenue generated by Valentina. It’s the end of November and we want to calculate how much revenue to share for the month of October.
First we need to find out the revenue_received in October.
Go into Google Drive and find the file:
The October payment from Google arrives on November 15th. You’ll see on November 15th I received a payment of $9556.20 HKD for October’s sales. Therefore revenue_received is $9556.20
(character_x_sales / total_character_sales ) * 0.05 * 9556.20
Next login to AppAnnie.com and let’s take a look at the character by character revenue break down for Girlfriend Plus.
Valentina generated $65.35 USD and the entire app generated $565.13 USD.
(65.35 / 565.13 ) * 0.05 * 9556.20
= $55.89 HKD
Therefore for the month of October, we owe Cindy $55.89 HKD.