Setting Up Your Virtual Studio's Revenue Model

Whether you are developing a totally new virtual revenue model, using an existing revenue model, or tweaking your current model for the virtual world, this article is here to provide options and things to consider. In the end, it's up to you! Learn It Live is here to help!

Note: This mostly applies to memberships, not a la carte class sales which can be split in a more traditional way (IE. Partner instuctor gets X of all a la carte class sales)

1. Community-Based Revenue Share: In order to get a cut the partner instructor must teach X classes/month. The contributing partner instructors get an even cut of subscriptions thereafter.
   • Here is what the split could look like for Studio ACME that has 20 instructors
     • Total Revenue after LiL and Payment Processing is $10,000
       • Affiliates/Marketing Partners receive 20% ($2,000)
       • Studio ACME takes 30% as the studio admin ($3,000)
       • Partner Instructors Receive 50% ($5,000) or $250/instructor
2. Contribution-Based Revenue Share: At the end of the period each instructor is rewarded based on their contribution in the program (based on users)
   • Here is what the split could look like for Studio Omega that has 10 instructors
     • Total Revenue after LiL and Payment Processing is $10,000
       • Affiliates/Marketing Partners receive 20% ($2,000)
       • Studio Omega takes 20% as the studio admin ($2,000)
       • Partners Split 60% ($6,000) according to participation
         
         • Partner A is very popular and has 48% utilization and receives $2,880
         • Partner B is the second most popular and has 20% and receives $1,200
         • The remaining 8 partners only got 4% each and get $240
3. Pay for Service Model: The studio admin pays a set rate to the partner instructors for leading programs and they keep the remaining revenue.
   • Here is what the split could look like for Studio Gamma that has 5 instructors
     • Total Revenue after LiL and Payment Processing is $10,000
       • Affiliates/Marketing Partners receive 25% ($2,500)
       • Studio Gamma pays instructors $40/class
       • Partner instructors teach 100 classes/month and earn $4,000
       • Studio Gamma takes the remaining $3,500

These are examples of the most common revenue models to choose from, but there are different ways to slice a pie. If you've found something different than these that works well for you, we'd love to hear about it!