In the world of OnlyFans, revenue is everything. As an OnlyFans agency or creator, it's crucial to have a clear understanding of how to properly split revenue in order to maximize profits and avoid financial pitfalls. The right commission structure can ensure that everyone involved is fairly compensated for their contributions, while the wrong structure can lead to chaos and financial ruin. In this article, we'll explore the ins and outs of proper revenue splitting for OnlyFans agencies and creators.

OnlyFans' Revenue Split

First thing to consider is that OnlyFans takes a massive cut of your money.

When a creator makes money on OnlyFans, the platform takes a 20% service fee for managing the merchant service. While this fee allows creators to bypass the hurdles of managing merchant services themselves, some may argue that it is not worth the cost due to OnlyFans' slow and not creator-friendly interface. However, for those who want to focus solely on content creation and do not want to deal with the technical aspects of processing payments, OnlyFans may still be a viable option.

Who Deserves Commissions

In any OnlyFans management agency, there are several roles involved in the process, including creators, traffic generators, chatters, and managers. Each role contributes value to the overall success of the agency and deserves a commission for their efforts.

Creators are the ones who produce the content that generates revenue for the agency. They are the face of the brand and are responsible for engaging with fans, creating high-quality content, and keeping them engaged with regular updates. Without creators, there would be no content for fans to consume, and the agency would not generate revenue.

Traffic generators are responsible for driving traffic to the agency's website and OnlyFans pages. They may use various marketing strategies, such as social media marketing, paid advertising, and search engine optimization to attract new fans and followers. Without traffic generators, the agency's content would not reach as wide of an audience, and revenue would suffer.

Chatters are responsible for engaging with fans and followers through messaging and other means. They may offer upsells and other incentives to keep fans engaged and interested in the agency's content. Chatters play a crucial role in retaining fans and keeping them subscribed, which leads to more revenue for the agency.

Finally, managers are responsible for overseeing all aspects of the agency's operations, from content creation to marketing and sales. They are responsible for coordinating the efforts of all team members and ensuring that the agency runs smoothly and efficiently. Managers are also responsible for setting commission rates and determining how revenue is split among team members.

In short, each role contributes value to the agency's success and deserves a fair commission for their efforts.

Types of Commission Structures

Commission structures can vary greatly, depending on the needs and goals of the OnlyFans agency or creator. Two common types of commission structures are percentage-based and fixed fee models.

Percentage-based models involve a percentage of the revenue earned by the creator or agency being paid to other parties involved in the management of the account. The percentage is typically agreed upon beforehand and can vary depending on the specific roles involved. For example, traffic generators may receive a higher percentage for each new subscription generated, while managers and creators may split the remaining percentage.

Fixed fee models involve a set fee being paid to each party involved, regardless of the revenue earned by the creator or agency. This can be beneficial for those who want a consistent income, but may not be the best option for those who want to incentivize increased revenue.

It's important to consider the specific needs and goals of the agency or creator when choosing a commission structure. It's also important to have a clear agreement in place that outlines the commission structure, payment schedule, and any other relevant details.

Pros and Cons of Each Commission Structure

When it comes to commission structures, there are different approaches that can be used. Here are some of the pros and cons of each:

1. Percentage-based model

• Pros: This model is straightforward and easy to calculate. It's also a common approach in the industry.

• Cons: It can penalize managers who invest in marketing because the more money spent on ads, the more revenue generated, which means more commission paid out.

2. Fixed fee model

• Pros: This model can be more predictable and provides stability for creators and agencies. It also encourages managers to focus on efficient spending.

• Cons: It can discourage investment in marketing as the revenue is capped, which may not be ideal for agencies looking to grow quickly.

3. Hybrid model

• Pros: This model allows for the benefits of both percentage-based and fixed fee models. It allows for some stability while also providing the opportunity for growth and investment.

• Cons: It can be more complex to calculate and implement, which may require additional time and resources.

Ultimately, the commission structure that works best will depend on the specific needs and goals of the agency and creators. We will look at fair commissions model in a moment. Before we do that, let's highlight a major flaw in the percentage model.

The Biggest Flaw with Percentage Based Model

In a percentage-based commission model, the commission amount is calculated as a percentage of the total revenue earned by the agency or creator. While this may seem like a fair way to split commissions, it can often penalize investing in marketing and growth.

This is because as the revenue grows, the commission amount also increases, even if the increase in revenue is due to an increase in marketing spend. In other words, the manager or agency may end up receiving a larger commission for revenue that was generated solely due to an increase in ad spend.

As a result, this can disincentivize investing in marketing and growth, which can be detrimental to the long-term success of the agency or creator. By focusing on minimizing commission payments, rather than maximizing revenue and growth, the agency may miss out on opportunities to scale and expand.

One way to fix this is to remove costs before splitting commissions. However, implementing this model can be challenging as it requires a high degree of trust between creators and managers. Creators need to trust that managers are not inflating costs in order to short them, while managers need to trust that creators are not underreporting revenue. One solution is to use a third-party accounting firm to audit the account and ensure that costs and revenue are accurately reported. By implementing a fair and transparent commission structure, creators and managers can work together to grow their OnlyFans account and maximize revenue.

Therefore, it's important to consider alternative commission structures that better incentivize growth and marketing investment, which is what we will look at in the next section.

"The FAIR Split" Model

The FAIR split is a commission structure that takes into account the costs and expenses associated with managing an OnlyFans account. Under this model, traffic generators only receive a commission on new subscriptions they bring in, while chatters only receive a commission on messaging sales they generate themselves. Creators and managers can then split what is remaining after paying traffic generators and chatters.

This model is fair because it ensures that each party receives a commission based on the value they bring to the table. Traffic generators are incentivized to bring in new subscribers, while chatters are incentivized to generate messaging sales. Creators and managers can then focus on creating high-quality content and managing the account, respectively, without worrying about being penalized for investing in marketing and growth.

One fair way to split commissions is to have traffic generators collect a fixed fee per subscription, which could be based on a percentage of the subscription fee. For example, 50% of this fee could be charged to traffic generators. This means that for every dollar a simp spends on subscribing, 20 cents goes to OnlyFans, 40 cents goes to the traffic generator, and the remainder is split between the creator and manager.

Chatters would collect a percentage of the revenue they generate on tips and messaging sales. A fair commission could be between 20% and 50% of tips and messaging sales. For custom content requests fulfilled by the creator, a fixed fee can be paid, such as $5 for any custom content that is $50 or more.

Finally, creators and managers would split the remainder. Creators would be responsible for their content creation costs, while managers would be responsible for paying for their own operational costs. This eliminates the need for being transparent with costs, creates fewer record-keeping processes, and allows for greater autonomy among each party.

This model is named the FAIR Split model and helps ensure that each party is compensated fairly based on their contribution to the success of the agency.

Conclusion

In conclusion, proper revenue splitting is essential for the success of OnlyFans agencies and creators. We've explored the different commission structures and models available, including percentage-based models, fixed fee models, and the FAIR split. While each model has its benefits and drawbacks, the FAIR split offers a fair and transparent way to split commissions among creators, traffic generators, chatters, and managers.

By only providing commissions to traffic generators for new subscriptions and to chatters for messaging sales they generate, and then splitting the remaining revenue between creators and managers, the FAIR split incentivizes investing in marketing and growth without penalizing managers.

It's important for OnlyFans agencies and creators to carefully consider their revenue splitting approach and choose a model that suits their goals and needs. With the FAIR split, managers can protect their interests while keeping it fair for all involved parties.

Video coming soon...

[Video Placeholder]


Manage your OFM Agency with SimpTrap CRM

SimpTrap is a tool that allows creators and agencies to have more control over their content and audience by owning their own platform. By using SimpTrap, creators and agencies can collect their fans' email addresses and phone numbers, which can be used to reach them even if their social media accounts are suspended or banned. SimpTrap also provides features such as scheduled messaging and automated CRM to help creators and agencies better manage and engage with their audience. While SimpTrap doesn't provide direct anti-ban or anti-hack protections, owning your own platform can help reduce the risk of account suspensions or bans that can occur on third-party platforms.

SimpTrap is made specifically for OFM agencies and adult content creators.

Here are some features of SimpTrap:

🟢 Schedule paid video calls

🟢 Manage custom PPV orders

🟢 Manage and view SMS and Instagram chatter operations

🟢 Automate lead generation (simps and models)

🟢 Host unlimited websites

🟢 Upsell in SMS and Emails

🟢 Schedule social media content

🟢 Digitally sign agency contracts

🟢 SimpTrap private telegram group

🟢 SimpTrap private video library

🟢 Creator House model training library

🟢 2257 compliance