Tip 61: Splitting Revenues/Profits

When co sponsoring a show or event with another group, how do you split revenue/profits? First, keep the deal as simple as possible. Complexity wastes effort and usually creates more problems. The split should depend on the value each brings to the table. First, take all direct costs off the top, such as operations and registration. However, overhead (such as staff salaries) is not included as "direct." Once these direct costs are deducted, the resulting profit is divided depending on how much revenue each has generated, including:

  1. Revenue from the paying attendees that each brings in.

  2. Exhibitor or sponsorship revenue that each brings in.

For more on this, see "Co-Locating a Show" in the book (pages 149-153).