How to Split Profit in Co-Production: Revenue Division Guide

Who does what in co-production?

It depends on what you agree. There is no single model. Co-production might have one creator building content, another driving sales, and a third handling customer support. Or three people doing everything together and splitting proportionally.

• Creation: the person producing course content, writing ebooks, or building communities. Could be one person or team effort.
• Customer support: whoever responds to customer questions and technical issues. Could be one dedicated person or rotating responsibility.
• Traffic and marketing: who brings buyers to the product. Could be one partner or each person promotes to their own audience.
• Decision-making: who decides pricing, promotions, pausing sales, or closing the product. Usually the original creator, but consensus helps avoid conflict.

The clearer your contract about roles and responsibilities, the fewer misunderstandings later. Mundpay help center has step-by-step guidance on setting up co-production on the platform.

Fixed percentage or result-based split?

Fixed percentage is more predictable. Result-based splits change every month. There is no right way, only what keeps all partners satisfied.

• Fixed percentage: you receive a fixed percentage of every sale regardless of whether the month brought one thousand or one hundred thousand in revenue. Predictable, easy to calculate, and avoids monthly disputes about what each partner earned.
• Result-based: you receive a percentage of actual profit, not gross revenue. More complicated because profit changes with fees, refunds, and chargebacks, and requires calculation every month.
• Hybrid: base percentage plus bonus for hitting targets. Motivates whoever drives sales and rewards extra effort without reducing the base pay.

Fixed percentage is recommended for partners starting out. Once all parties feel comfortable with the model, you can adjust later if you want.

What your co-production contract needs

Your contract does not need to be twenty pages, but it must address five points that cause disputes. Write it in a document, send it via email with confirmation, and keep it. It is not about looking legal, it is about making sure everyone agrees on something.

• Revenue split and method: how much each partner gets and whether it is fixed percentage, results-based, or another method. Hypothetical example: "A receives 40%, B receives 35%, C receives 25% of gross sales per transaction."
• Who decides what: specifically pricing, pausing sales, closing the product, approving refunds, and changing the agreement. Example, "A sets pricing and promotions. B and C have input rights, but A decides."
• Responsibilities: who creates, who supports customers, who markets. Be explicit so nobody assumes someone else will do their part.
• Payouts: withdrawal timing and how payments are processed. Example, "Each partner receives payment D+3 via Mundpay."
• How it ends: how long the partnership lasts, when partners can leave, what happens if someone exits early.

For legal details, consult a lawyer. Here we cover operational structure, not legal advice.

Dividing revenue in multiple currencies

Mundpay does this automatically if each co-producer has a Mundpay account. The split is proportional according to the agreed percentage.

• Hypothetical example: product costs 100 in any currency. In a hypothetical example with a 40%, 35%, and 25% split, each partner receives respectively 40, 35, and 25 according to the transaction currency.

Technical details and how to set up co-production on Mundpay are in the help center.

Avoiding co-production disputes

Clear contract, constant communication, and visible numbers prevent problems. Co-production conflicts usually come from misunderstanding money or surprises with results.

• Written agreement: as mentioned above, this eliminates ambiguity.
• Monthly reports: each partner has the right to see sales, payouts, refunds, and chargebacks. Transparency prevents suspicion.
• Talk before big decisions: raising prices, entering a new market, approving manual refunds. Discuss first, act after, do not spring surprises.
• Personal accountability: each partner owns their area. If you handle marketing, market well. If you handle support, support well. Execution reduces conflict.

Co-productions that work during the first year often last years. When one partner fails to deliver, partnerships end fast.

Chargebacks in co-production

Divided proportionally. Whoever receives a percentage of revenue absorbs the same percentage of chargeback impact. This is not punishment, it is logic, whoever profits from a sale also carries its risk. The split is automatic, nobody needs to chase payment later.

• How Mundpay does it: the platform splits automatically according to your percentage. You do not need to chase anyone for payment later.

Some agreements assign all chargebacks to one co-producer. If you propose this, have a strong reason and compensate in profit sharing.

When co-production makes sense

When you have audience to bring but lack time or knowledge to create, or you have the product but no one to sell it well. Co-production accelerates growth when your partner brings something you lack alone.

• Makes sense if: you drive traffic but others create well. You have expertise but others market effectively. Together you accomplish in one month what would take months separately.
• Does not work if: you want to do nothing and receive a percentage, or your partner distrusts everyone. Co-production without trust moves slowly.

Compare with payment splits if you and your partner already have defined roles.

Where Mundpay enters co-production

In the automatic payout. You set up co-production on Mundpay, each co-producer accepts the invitation, and every sale is split automatically. Nobody keeps score, and payouts are clean.

Sources consulted

• Mundpay Help Center: Co-production step by step