Partner Revenue Sharing
Automated calculation system that determines commission rates, bonuses, and payouts for content, service, and technology partnership agreements.
Solution
The Partner Commission Calculator automates revenue sharing calculations based on partnership agreements. It determines appropriate commission structures by analyzing key partnership factors including partner type, revenue generated, service category, and exclusivity status. For content partners, the system applies tiered rates with higher commissions for premium streaming services generating over $1M in revenue.
The calculator factors in contract duration and customer segment to apply appropriate multipliers, rewarding longer commitments and enterprise-level partnerships. It calculates base commissions on revenue generated, then adds performance bonuses adjusted by the appropriate multipliers. This ensures fair compensation while maximizing company revenue, with all calculations transparently documented for both partners and internal stakeholders.
How it works
The decision graph processes partnership data through three main components:
Input Processing: Collects critical partnership data including partner type, revenue generated, service category, customer segment, contract duration, and exclusivity status.
Commission Rate Determination: Evaluates partner characteristics against a decision table to assign appropriate base commission rates, performance bonus rates, and partner tier classification.
Final Calculation: Applies business logic to determine duration and segment multipliers, calculates base commission amount, adjusts bonus commission with appropriate multipliers, and computes total commission and company revenue.
The system supports various partner types (content, service, technology) with specialized rate structures for each category and adjusts calculations based on revenue thresholds and partnership terms.
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