I would like to know some details about online advertisement revenue sharing. I am planning a website in one particular vertical i.e. fashion jewelry. I am planning to attract user with revenue sharing of advertisements. Initially there will be per-click revenue and later we are planning to move to ad impression revenue, once the site really picks up.
Is it really possible to generate enough revenue through website that can also help user to earn good amount of money. I know this depends on many variables and the big one is audience?
I would really appreciate if someone can help me to find out ways to reach to some equation which can help us decide what all it will take to make it possible to reach to a goal where every content (media) provider users earn good money through revenue sharing and this will help is to validate feasibility of our concept too.
Appreciate your time.
You are much better off sharing the revenue in regard to each sale and not via clicks or impressions.
There are several reasons that a commission per sale is better, but the main reason is that you will be able to 'bake-in' the costs of those sales. When starting out, this is invaluable. In addition, you should make sure that you can get up and running without paying too much up front.
In the end, you will have to test out the best scenario for your business. Hopefully, you can do this without sinking too much money in initially, when you know the least about what strategy will suit your company.
Also, you should try to find as many bloggers as you can within your vertical and see if they will be willing resellers (or affiliates) for you. Hopefully, they would be willing to do a write-up on your website as well (good for SEO too!)
IMHO revenue sharing from Advertisements alone will not earn your users much money, except you have huge traffic on your users sites. For example:
1000 clicks x $0.10 = $100 x 70% = $70.00 for your user, but how much traffic do you need for that volume of clicks. If CTR would be 10% than you need 10.000 visitors/page views. Did you get that volume of traffic to each of your users sites? In which time frame do you get the traffic? Day, Week, Month...?
It also depends on the CPC you get for each click. It might be less than what I assumed above or it might be higher. There are also topics to think about, like sharing Google AdSense Profits or running your own Ad-Server, but than you would need Advertisers as well.
What I don't understand is your Statement "...later we are planning to move to ad impression revenue..."? Ok, you might be able to move to such a system later, but you will need high traffic to argue with your Advertisers to pay for impressions, an example for this is alexa.com.
Bottom Line is Traffic. As much Traffic you have the better and than your Click-Through-Rate and than the Cost-Per-Click or Impression you earn from your Advertisers.
That's your Equation. Best you take an Spreadsheet Program and calculate some Scenarios.
Hope this helps.
Google offers revenue sharing for Adsense, but for big publishers. Their goal is to offer it to sites like Yelp, and facebook where users will get a revenue on their profile (when ads are displayed and clicked)
Its not worth doing on small site. @Jeff Epstiens affiliate approach is more suited for smaller operations.
Have you thought about using an affiliate network? My site uses Shareasale.com, the Google Affiliate Network and an in-house developed affiliate network, and they drive a tremendous amount of quality traffic, and we only pay a % based on successful transactions.