A successful course co-production relies on a clear and fair revenue-sharing agreement. Since both the expert and the co-producer contribute different skills—one providing knowledge and content, the other handling marketing, sales, and technical aspects—it’s crucial to ensure that both parties feel valued and fairly compensated. A well-structured revenue split motivates both partners and lays the foundation for a long-term, profitable collaboration. This article will guide you through the process of negotiating a fair revenue split in course co-production.
Understanding the Roles in Course Co-Production
To determine a fair revenue split, both parties must recognize the value they bring to the partnership. The key contributors in a co-produced course are:
- The Expert (Course Creator): This person provides knowledge, course content, and authority in the niche. Their main responsibilities include:
- Recording lessons, creating workbooks, and structuring modules.
- Offering expertise and credibility to make the course valuable.
- Engaging with students, answering questions, or conducting live sessions (if applicable).
- Sometimes leveraging their existing audience to boost initial sales.
- The Co-Producer (Marketing & Business Partner): This person handles all aspects of sales, marketing, and course management. Their main responsibilities include:
- Setting up sales funnels, advertising campaigns, and lead generation.
- Managing the course platform, handling technical issues, and student support.
- Running email sequences, social media promotions, and paid ads.
- Optimizing conversions and ensuring course profitability.
A balanced revenue split should reflect the effort, risk, and skills each party brings to the table.
Common Revenue Split Models
There is no one-size-fits-all revenue split. The right choice depends on who does what and how much effort each party contributes. Below are the most commonly used models:
1. 50/50 Split (Equal Partnership)
- Best for partnerships where both parties contribute equally.
- The expert provides high-quality, engaging content, while the co-producer drives strong sales.
- Suitable for long-term collaborations where both partners stay actively involved.
2. 70/30 or 60/40 Split (Favoring the Expert)
- The expert earns a larger percentage if they bring a strong personal brand or a large audience.
- The co-producer takes a smaller share but benefits from high conversion rates.
- Works well if the expert actively participates in promotions, such as webinars or social media marketing.
3. 70/30 or 60/40 Split (Favoring the Co-Producer)
- The co-producer takes a larger share if they handle all marketing, sales, and course platform management.
- The expert focuses solely on teaching and recording content, making it a more passive income stream for them.
- Suitable when the expert has no online presence or experience in digital marketing.
4. Commission-Based Model
- Instead of a fixed split, the co-producer earns a percentage per sale.
- Commonly used when the expert wants to retain full course ownership.
- Works well when multiple marketers promote the same course as affiliates.
Key Factors to Consider When Negotiating Revenue Split
A fair agreement should take into account:
- Course Ownership: If the expert retains full ownership, they might take a higher revenue share. If the course is hosted and managed by the co-producer, they may deserve a larger split.
- Investment Costs: Who pays for advertising, video production, course platform fees, and tools? The person taking financial risks should earn a higher share.
- Marketing Effort Required: If the expert has a built-in audience, marketing efforts may be lower, justifying a more balanced split. If the co-producer has to build an audience from scratch, they may deserve more compensation.
- Course Pricing Strategy: High-ticket courses ($500+) may allow higher expert earnings, while lower-priced courses require greater marketing investment.
- Long-Term Plans: If both partners plan to launch multiple courses together, a flexible agreement can be established with room for adjustments.
Steps to Negotiate a Win-Win Revenue Split
1. Define Clear Roles and Responsibilities
Before discussing revenue, both parties should agree on who does what. Outline each person’s tasks, workload, and financial investments.
2. Research Industry Standards
Look at how similar partnerships split revenue in your niche. If most course creators in a field take a 60% share, it may be harder to negotiate a 50/50 split unless the co-producer brings exceptional value.
3. Start with a Trial Agreement
Instead of committing to a long-term split, consider launching the first course under a temporary contract. After reviewing sales performance, you can renegotiate a better deal for future projects.
4. Put Everything in Writing
A verbal agreement is not enough. Always draft a written contract covering:
- Revenue split percentages and payment schedules.
- Course ownership and content rights.
- Marketing responsibilities and advertising budgets.
- What happens if one partner wants to leave the partnership?
5. Be Open to Adjustments
If the course performs better than expected, it may be fair to renegotiate the split to better reflect each partner’s contributions. Flexibility ensures long-term collaboration.
Red Flags to Watch for When Negotiating
🚩 The expert expects a high percentage but refuses to promote the course.
🚩 The co-producer demands course ownership without contributing content.
🚩 One party refuses to sign a written agreement.
🚩 There is no transparency in how marketing costs will be covered.
A healthy negotiation involves mutual respect, fairness, and a clear understanding of each partner’s role.
Final Thoughts
A well-structured revenue split ensures that both the expert and the co-producer feel motivated, fairly compensated, and committed to the course’s success. By considering workload, financial investment, and long-term goals, both partners can establish a win-win agreement. Open communication and a written contract are key to avoiding misunderstandings and ensuring a profitable collaboration.