One of the most delicate aspects of digital course co-production is deciding how to split profits. The expert brings knowledge and authority, while the co-producer contributes strategy, tech, and marketing. Both roles are essential, but without clear agreements, partnerships can quickly fall apart.
In this article, we’ll explore how to divide revenue fairly, factors to consider in negotiations, and practical tips for creating win-win co-production deals.
Why Profit Sharing Matters
A fair split motivates both parties to give their best. When profits are divided properly:
- The expert feels rewarded for their knowledge and teaching
- The co-producer feels valued for their strategic and technical work
- Both remain committed to long-term collaboration
Unfair or unclear arrangements, on the other hand, lead to frustration, mistrust, and failed partnerships.
The Standard Split in Co-Production
While there is no universal rule, many co-production deals follow a 50/50 model. This works because:
- The expert creates content and delivers transformation
- The co-producer handles the entire business side
In some cases, splits can vary depending on who invests more time, money, or resources.
Factors to Consider When Splitting Profits
1. Content Creation
The expert usually takes the lead here, but if the co-producer helps with outlining, scripting, or editing, this contribution increases their value.
2. Marketing and Sales
If the co-producer manages ads, copywriting, funnels, and launches, they are directly responsible for revenue. This often justifies a larger share.
3. Tech Setup
Building platforms, automating processes, and troubleshooting can take significant effort. This should be considered in negotiations.
4. Audience Size
An expert with a large, engaged audience brings an asset that can’t be ignored. In such cases, they may receive a higher percentage.
5. Financial Investment
If one party invests money in ads, freelancers, or tools, that cost should be accounted for before profit splitting.
Common Revenue Splitting Models
Equal Partnership (50/50)
Best for balanced contributions, where both parties are equally responsible for success.
Expert-Heavy (60/40 or 70/30)
Works when the expert already has a large audience and strong brand recognition, reducing the co-producer’s workload in marketing.
Co-Producer-Heavy (40/60)
Suitable when the expert has little to no audience, and the co-producer handles most of the workload, including traffic generation.
Hybrid: Base + Performance
Sometimes a flat fee or retainer is added on top of a smaller revenue split. Example: $2,000 upfront + 30% of profits.
How to Negotiate a Fair Deal
- Define roles clearly: Outline who is responsible for content, marketing, tech, and support.
- Discuss investments: Clarify who pays for ads, freelancers, or tools.
- Agree on ownership: Decide who owns the course content and assets if the partnership ends.
- Put it in writing: Always use a contract to avoid misunderstandings.
- Review after each launch: Adjust terms if one party’s contribution increases significantly.
Mistakes to Avoid in Profit Splitting
- Accepting vague agreements without details
- Ignoring ad costs or extra expenses
- Assuming future revenue will fix an unfair deal
- Avoiding difficult conversations about money
Transparency is the foundation of a strong partnership.
Example Scenarios
Scenario 1: Expert with Audience, No Tech Skills
Split: 60% expert / 40% co-producer
The expert brings reach, while the co-producer ensures execution.
Scenario 2: Expert with Knowledge but No Audience
Split: 40% expert / 60% co-producer
The co-producer takes on the bigger role in marketing and sales.
Scenario 3: Balanced Effort
Split: 50/50
Both parties invest equal time and resources.
Final Thoughts: Fairness Creates Longevity
Profit sharing is not about finding a perfect formula — it’s about creating fairness and trust. Both expert and co-producer should feel their work is valued.
A fair deal motivates consistency, builds loyalty, and ensures both sides remain committed to the success of the course. Always prioritize clarity, transparency, and contracts. When both parties win, the partnership thrives.