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  • FORMLESS NETWORK
    • Overview
  • SHARE
    • SHARE SDK
      • Authentication
      • Payouts
      • Smart Contracts
      • Prepaying for API Credits
    • SHARE App
      • Smart Contract Creation
        • Sell a Beat
        • Sell a Song
        • Sell a Video
        • Sell an Album
        • Sell a Collection with Community Splits
        • Create a Community Splits Contract
      • Frequently Asked Questions
    • SHARE Protocol
  • TUTORIALS
    • Cashing Out to Your Bank
    • Collections Revenue Flow
    • For Symphonic Customers
      • Get Your Streaming Money Paid Out Same Day
      • Share Streaming Money with Fans
      • Add SHARE Protocol as a Payee
      • Assign Royalty Splits to SHARE Protocol
      • Connect Track Earnings to a Smart Contract using a Form
      • Connect Track Earnings to a Smart Contract using SHARE SDK
      • Receiving Realtime Royalty Payouts
    • For Distribution Businesses
      • Getting Started
      • SHARE Enterprise Dashboard
        • Your Custom Branded Portal
        • Logging in and Adding Authorized Users
        • Viewing Your Revenue Analytics and Balance
        • Viewing Customers
        • How Revenue Splits Work on D2C Sales
      • SHARE API and SDK Access
        • Shared Ownership and Large-Scale Fractionalized Payouts
        • Connect DSP Earnings to SHARE with No-Code
        • How Your Customers Can Create Splits Contracts
        • Create a Community Splits Contract using SHARE UI
        • Execute a Programmatic Payment
        • How to Verify FORMLESS Account IDs
        • Add SHARE Protocol Split Contract as a Payee
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On this page
  • Overview
  • Flow of Funds
  • Example Using a $1 USD Payment
  • Viewing Transactions on Blockchain
  1. TUTORIALS
  2. For Distribution Businesses
  3. SHARE Enterprise Dashboard

How Revenue Splits Work on D2C Sales

This page provides an overview of how revenue flows from a payer to payees as well as how fees are shared with your distribution business automatically.

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Last updated 3 months ago

Overview

SHARE Protocol uses smart contracts to manage access rights and revenue flow associated with IP such as music and videos. The fundamental building blocks of the protocol are Pay-For-Access (PFA) Smart Contracts, Splits Smart Contracts, and Collections Smart Contracts. PFA smart contracts enable anyone to set their own prices and access terms for IP. Splits contracts distribute revenues on blockchain to payees. Splits contracts can distribute earnings from IP on blockchain, or off of the blockchain, e.g. from DSPs. Collections smart contracts can group PFA contracts into playlists and albums.

Flow of Funds

The diagram below shows how funds flow from a payer, through the protocol, to your distribution business and a track encapsulated as a PFA smart contract.

Example Using a $1 USD Payment

On the blockchain a consumer makes a purchase for a product that costs $1.00. Their total price with fees is $1.05. SHARE and the distributor (your business) split this fee 50/50, and $0.025 goes to your business digital wallet. $1.00 flows to the track. The track passes the $1.00 on to any split contract that is connected to it. The split contract then distributes the funds to payees in proportion to their share of the revenues, e.g. 50% to payee 1 and 50% to payee 2. In SHARE protocol, splits are processed over time, meaning that on the first payment, payee 1 will receive $1.00 and on the second payment payee 2 will receive $1.00, and so on and so forth.

Viewing Transactions on Blockchain

Every transaction on the blockchain is transparent and visible using a blockchain scanner. Every blockchain has its own scanner. For example, transactions on the Polygon blockchain show all transactions on . Here's an of a typical blockchain payment transaction on SHARE Protocol that includes a payer, a track, a distributor and a split, which matches the flow as described above.

Polygonscan
example
The above diagram shows the flow of funds from a payment executed with SHARE. It applies to D2C payments as well as royalty payments delivered programmatically.
Above is a screenshot of a live transaction from the Polygon blockchain.