Online advertisement revenue sharing

You are much better off sharing the revenue in regard to each sale and not via clicks or impressions.

There are several reasons that a commission per sale is better, but the main reason is that you will be able to 'bake-in' the costs of those sales. When starting out, this is invaluable. In addition, you should make sure that you can get up and running without paying too much up front.

In the end, you will have to test out the best scenario for your business. Hopefully, you can do this without sinking too much money in initially, when you know the least about what strategy will suit your company.

Also, you should try to find as many bloggers as you can within your vertical and see if they will be willing resellers (or affiliates) for you. Hopefully, they would be willing to do a write-up on your website as well (good for SEO too!)

Good Luck!

IMHO revenue sharing from Advertisements alone will not earn your users much money, except you have huge traffic on your users sites. For example:

1000 clicks x $0.10 = $100 x 70% = $70.00 for your user, but how much traffic do you need for that volume of clicks. If CTR would be 10% than you need 10.000 visitors/page views. Did you get that volume of traffic to each of your users sites? In which time frame do you get the traffic? Day, Week, Month...?

It also depends on the CPC you get for each click. It might be less than what I assumed above or it might be higher. There are also topics to think about, like sharing Google AdSense Profits or running your own Ad-Server, but than you would need Advertisers as well.

What I don't understand is your Statement "...later we are planning to move to ad impression revenue..."? Ok, you might be able to move to such a system later, but you will need high traffic to argue with your Advertisers to pay for impressions, an example for this is alexa.com.

Bottom Line is Traffic. As much Traffic you have the better and than your Click-Through-Rate and than the Cost-Per-Click or Impression you earn from your Advertisers. That's your Equation. Best you take an Spreadsheet Program and calculate some Scenarios.

Hope this helps.

Cheers, Stephan

Have you thought about using an affiliate network? My site uses Shareasale.com, the Google Affiliate Network and an in-house developed affiliate network, and they drive a tremendous amount of quality traffic, and we only pay a % based on successful transactions.

Google offers revenue sharing for Adsense, but for big publishers. Their goal is to offer it to sites like Yelp, and facebook where users will get a revenue on their profile (when ads are displayed and clicked)

Its not worth doing on small site. @Jeff Epstiens affiliate approach is more suited for smaller operations.