Profit Sharing refers to a business arrangement where partners or affiliates earn a percentage of the profits generated by the transactions they refer or facilitate. This can be a powerful incentive for businesses to promote a specific payment processor or service, and is a common feature of affiliate and reseller programs.
For example, a web developer might partner with a payment gateway provider and earn a commission for each client they refer that signs up for the gateway’s services. This type of arrangement can be beneficial for all parties involved as it helps the payment processor or service provider to acquire new customers, while the affiliate or reseller earns a share of the revenue generated by their referrals.
However, it’s important for businesses involved in profit-sharing arrangements to be transparent and upfront about their relationships with their partners and customers.