Blockchain technology has proven to be one of the most innovative inventions till date. Blockchain is the technology behind the creation of Cryptocurrency. The banking and finance industry has been benefiting a lot from this technology. Especially when it comes to the use of blockchain Smart Contracts, this technology is becoming very useful. Blockchain acts as an unbiased third party that oversees each transaction.
In simple words, revenue sharing is the distribution of profits and losses among all stakeholders of the organization. Revenue sharing has become very popular as a form of income from the internet and Using smart contracts for revenue sharing is an excellent idea.
Revenue sharing has been in use for a long time in industries like media, entertainment, sports, hospitality, government, etc. But recently it has come into people’s knowledge because of affiliate marketing. Affiliate marketing is an online sales strategy that lets the owner of a product increase the sales by allowing others targeting the same audience, also known as affiliates, to earn a commission by recommending the product to other people. People who earn money by revenue sharing platform or affiliate marketing want to ensure that they get paid for the hard work they do.
In revenue sharing, it is sometimes difficult to accurately determine who deserves the profit-sharing. Companies have to wait for days and weeks so that they can pay someone. Speed, transparency, and accuracy are the main problems in the revenue sharing model.
How Smart Contracts can be Used in Revenue Sharing?
Blockchain Technology and Smart Contracts provide a solution to all these problems. Smart contracts are agreements created using Blockchain Technology. These are executable programs that automatically execute the payment once all the pre-agreed-upon terms and conditions are satisfied. Use of Smart contracts ensures accurate, transparent and real-time revenue sharing.
There are obviously endless possibilities for how this technology will affect online profit-sharing. Groups and companies that use smart contracts in their revenue sharing platforms will experience advanced security, along with faster payments, accurate sales reporting and a variety of other benefits.
Let’s take a look at the points on how Smart Contracts will be beneficial in Revenue Sharing.
- Accuracy: Smart Contracts updates the data that is fully approved and updates it at the actual time it took place. This improves the accuracy of the transaction getting saved.
- Speed: With the use of smart contracts, there is no need to wait for the fully approved transaction details. Affiliate marketing companies have to wait in order to confirm that the money has been paid and also confirm that the transaction was not fraudulent. But with the smart contract people won’t have to wait long to get paid.
- Transparency: Smart Contracts could eliminate fraudulence from revenue sharing. Smart contracts will ensure that the part your sharing in the revenue will get deducted by itself.
- Middlemen: Everyone wants to get fully paid for their work in affiliate marketing, which is why they don’t want the involvement of middlemen. Smart contracts are attached to the automated, decentralized ledger of the Blockchain technology. This means that there will be no third-party involvement in the ledger. With this, everything will be deeply tracked and transparent. This eliminates the middlemen from revenue sharing.
- Security and Programme Maintenance Cost: As we know that computer software and apps need updates very often, which is very exhausting. Some companies are looking at how smart contracts could be used for revenue sharing upgrades. Smart contracts offer more accuracy and other securities without requiring any upgrade work as the normal cybersecurity technologies do. For revenue sharing platforms, this results in more security and less maintenance time to update. This results in lower operating costs.
Revenue Sharing platform could benefit in a variety of ways from Smart Contracts. This smart technology can create livelihoods for the right people. Technology such as this helps profit-sharing and affiliate work easy and trustworthy, making it a great advantage. Smart contracts create a win-win situation for all the parties involved in the revenue sharing.