Reshaping Traditional Shareholding with Revenue Share

In the business context, the revenue share model offers a fresh perspective on participation in enterprises, complementing traditional shareholder models. This approach allows participants not just to invest capital but also to receive a share of the profits for their intellectual contributions and labor.

Transitioning to the revenue share model is seen as promising for creating profitable enterprises, uniting people of various specializations. Unlike traditional joint-stock companies, it offers a more flexible mechanism for profit distribution, focused on work outcomes.

However, standard shareholding is governed by strict regulatory frameworks, creating barriers for those who don't meet certain financial criteria. In this context, the revenue share model emerges as an alternative, allowing anyone, regardless of their financial capabilities, to contribute to the development of an enterprise.

The main challenge is to combine the flexibility of revenue share with the formalized structure of traditional shareholding. This requires a new approach to assessing participants' contributions, based not only on financial investments but also on professional skills and knowledge.

For instance, you can own 1% of Netflix shares and hold a small portion of this major company, but if you're simply a talented individual contributing as an employee without significant capital for share purchases, you can gain a stake in the company through the revenue share approach, which doesn't have a financial threshold. However, this may lead to a conflict where people with financial resources compete with those possessing skills and expertise.

This issue presents a challenge: how to integrate the flexibility and innovation of the revenue share model into established financial and legal structures without disrupting the existing system.

This topic opens the field for discussion and the development of new ideas. Share your thoughts! Open discussion