Revenue Share Models for AI Delivery Partners: 60/40 Splits, Advances and Milestones

A revenue share is a simple idea with many details. One side brings the client and keeps the larger share. The other side delivers the work and keeps a smaller share. A 60/40 split is common in this kind of arrangement, but the split alone says little. The payment timing, the definition of project value and the treatment of repeat work decide whether the arrangement works in practice.

Key takeaways

• Define project value in one sentence before you agree a split.
• Tie each payment to a date or a milestone, so cash moves in the same order as the work.
• Start work only after the first share has arrived, so the delivery partner is never funding the client.
• Decide in advance whether the split applies to repeat work from the same client.

What a 60/40 split means in practice

Suppose a project is worth $10,000 and the split is 60/40. The party that brings the client keeps $6,000. The delivery partner receives $4,000. The percentages are easy. The hard part is when each amount moves.

Define project value clearly

Project value should mean the total fee the client pays for the agreed scope, before tax, and after any discount written into the contract. Without that definition, a discount, a refund or a change request can quietly reduce the partner's share. A clear definition prevents most arguments about the split.

Advances and milestones

Most AI projects need an advance. The build partner needs cash to start, and the client needs confidence that work is moving. A common pattern is an advance at the start, a payment on handover, and any remaining balance on acceptance. Each payment should trigger the partner's share within a short, fixed time.

For example, if the client pays half the project value as an advance, the party in front can pass the partner's share of that advance on receipt, and pass the rest of the share when the balance arrives. This keeps the delivery partner's risk low, because they start only after their share is in hand.

Repeat work and long relationships

A revenue share that ends after one project creates an incentive to find new clients quickly and push the first project through. A share that covers repeat work from the same client keeps both sides focused on the client's long-term success. Write the period and the scope of that coverage into the agreement.

Common mistakes

• Agreeing a percentage without defining what it applies to.
• Starting work before the first payment has cleared.
• Leaving repeat work out of the agreement, and arguing about it later.
• Paying for a project that the client has not yet paid for.

The partner terms on Growmerz follow this pattern: the partner keeps 60% of the project value, Growmerz keeps 40%, and work starts only after the first share arrives. The full details are on the become a partner page.

Frequently asked questions

Is a 60/40 split fair for the party that brings the client?

It can be, when that party holds the client relationship and the commercial risk. The fair split depends on how much work each side does and how much risk each carries.

Should the split be on revenue or on profit?

Revenue is simpler to agree and check. Profit depends on costs that each side may define differently, which makes disputes more likely.

What if the client does not pay?

Pause the work until the payment clears, and state this in the agreement. A partner who waits for the advance is protected from the worst cases.

Do I need a written agreement for a small project?

Yes. A short written agreement is worth it even for small projects, because most disputes start with a small amount.