Revenue Share Terms: What to Expect

How Revenue Sharing Works in a CRT Offering

At the core of every Channel Revenue Token (CRT) offering on GigaStar is a straightforward concept: a Creator raises capital from Investors and, in exchange, shares a defined percentage of their YouTube ad revenue with CRT holders for a set period of time. Understanding exactly how this works — what is shared, how it is calculated, and what obligations it creates — is essential before you commit to an offering.

GigaStar Market is an SEC-registered funding portal and FINRA member, and every CRT offering is conducted under Regulation Crowdfunding. This means the revenue share terms are not informal promises — they are contractual obligations documented in the Form C filing with the SEC. Once an offering closes, the terms are binding.

This guide explains each component of the revenue share structure so you know precisely what to expect before, during, and after your offering.

The Revenue Share Percentage

The revenue share percentage is the single most important term in your CRT offering. It defines exactly what portion of your YouTube ad revenue you commit to distributing to CRT holders each month.

For example, if your revenue share percentage is 10%, and your channel generates $8,000 in YouTube ad revenue in a given month, $800 goes to CRT holders in aggregate. You retain the remaining $7,200. If the next month your revenue is $6,000, CRT holders receive $600 and you retain $5,400. The percentage stays constant — the dollar amount moves with your revenue.

The revenue share percentage is determined during the offering structuring phase, in collaboration with GigaStar. Several factors influence where it lands:

• Your funding goal. A larger raise generally requires a higher revenue share to make the economics work for Investors.

• Your current revenue. Higher-revenue channels can offer a lower percentage and still generate meaningful distributions.

• Your growth trajectory. A channel with strong growth momentum may be able to offer a lower percentage because Investors factor future growth into their evaluation.

• Offering term length. A longer term means more total distributions over time, which can justify a lower percentage per month.

The goal is to set a percentage that is attractive enough to fund the offering while being sustainable for you over the full term. This is a balance, not a maximization exercise. For strategic guidance on how the revenue share connects to your funding goal, see Setting Your Funding Goal: A Strategic Approach.

What Revenue Is Included

Not all of a Creator's income is included in the revenue share. Understanding exactly which revenue streams are covered is critical for setting expectations accurately.

Included in the revenue share:

• YouTube ad revenue. This is the primary revenue stream covered by the CRT. It includes all ad formats served through the YouTube Partner Program — display ads, overlay ads, skippable video ads, non-skippable video ads, and bumper ads.

• YouTube Premium revenue. The share of YouTube Premium subscription fees allocated to your channel based on watch time by Premium members is typically included.

Typically not included in the revenue share:

• Sponsorships and brand deals. Revenue from direct brand partnerships or sponsored content arrangements is separate from YouTube ad revenue and is not part of the CRT revenue share.

• Merchandise sales. Revenue from selling products — whether through YouTube's merch shelf or external platforms — is not included.

• Channel memberships and Super Chats. Direct fan support through YouTube's membership program, Super Chats, or Super Thanks is not part of the ad revenue calculation.

• Affiliate income. Revenue from affiliate links in video descriptions or content is not included.

• External platform income. Revenue from Patreon, podcast ads, speaking engagements, or any other non-YouTube source is not part of the revenue share.

This separation is important for Creators to understand. The revenue share applies specifically to your YouTube ad revenue — it does not affect your ability to earn income from other sources. Your sponsorship deals, merchandise business, and other revenue streams remain entirely yours.

Monthly Distribution Mechanics

Distributions to CRT holders happen on a Monthly basis. Here is how the process typically works:

1. Revenue calculation. At the end of each month, your YouTube ad revenue for that period is calculated. YouTube provides this data through your YouTube Studio dashboard and payment reports.

2. Revenue share applied. The agreed-upon revenue share percentage is applied to the monthly ad revenue figure. If you committed to a 12% revenue share and your monthly ad revenue is $10,000, the distribution amount is $1,200.

3. Distribution to CRT holders. The total distribution amount is divided proportionally among all CRT holders based on the number of tokens each holds. If there are 10,000 CRTs outstanding and an Investor holds 500, that Investor receives 5% of the total distribution.

4. Payment processing. GigaStar handles the distribution logistics, ensuring that funds are transferred to CRT holders through the platform.

The timing of distributions aligns with YouTube's payment cycle. YouTube typically pays Creators around the 21st of each month for the previous month's earnings. The CRT distribution follows after the Creator receives and reports their YouTube payment.

This Monthly cadence provides regular, scheduled distribution events for Investors. For Creators, it means the revenue share is an ongoing monthly obligation — not a one-time event. Planning your cash flow to account for this Monthly outflow is an important part of managing your channel's finances after the offering.

The Offering Term

Every CRT offering has a defined term — the period of time during which the revenue share obligation is active. This term is set before the offering launches and documented in the Form C.

The term length affects the overall economics of the offering:

• Shorter terms mean a more concentrated commitment. The Creator shares revenue for fewer months, but the percentage may need to be higher to deliver sufficient total distributions over the shorter period.

• Longer terms spread the obligation over more months. This can allow for a lower monthly revenue share percentage, but it extends the period during which the Creator has a revenue-sharing commitment.

The right term length depends on your channel's characteristics and your preferences. Some Creators prefer a shorter, higher-intensity commitment. Others prefer a longer term with a more modest Monthly percentage. GigaStar helps you evaluate the tradeoffs during the term-setting conversation.

It is worth noting that the term creates a finite obligation. Unlike equity financing, where you permanently give up a share of ownership, the CRT revenue share has an end date. When the term expires, your obligation to share revenue with CRT holders ends, and you retain 100% of your ad revenue going forward.

What the Terms Mean for Your Cash Flow

Understanding the revenue share terms in the abstract is one thing. Understanding what they mean for your monthly cash flow is another. Let's walk through a concrete example.

Suppose your channel generates an average of $7,000 per month in YouTube ad revenue and you agree to a 10% revenue share:

• Monthly distribution obligation: $700
• Monthly revenue you retain: $6,300
• Annual distribution obligation: $8,400
• Annual revenue you retain: $75,600

Now consider what happens if your channel grows. If your revenue increases to $10,000 per month:

• Monthly distribution obligation: $1,000
• Monthly revenue you retain: $9,000

And if your revenue dips to $4,000 in a slow month:

• Monthly distribution obligation: $400
• Monthly revenue you retain: $3,600

The percentage-based structure means the dollar amount of your distribution obligation scales with your revenue. When your channel is doing well, the distribution amount is higher in absolute terms, but so is your retained revenue. When revenue is lower, the distribution amount decreases proportionally.

This structure is inherently more sustainable than a fixed-payment obligation like a loan. There is no scenario where you owe a fixed amount regardless of how your channel performs. The distribution is always a percentage of what you actually earn.

However, you should plan for the impact on your monthly budget. If you are accustomed to spending or reinvesting all of your YouTube revenue, the reduction — even at a modest percentage — needs to be factored into your financial planning.

Terms Are Set Before the Offering Launches

One of the most important things for Creators to understand is that the revenue share terms are finalized before the offering goes live. They are documented in the Form C — the official disclosure document filed with the SEC — and they become binding once the offering closes.

This means:

• The revenue share percentage does not change. It is the same in month one of the term as it is in the final month.

• The term length is fixed. The duration of the revenue share obligation is set at the outset and does not extend or shorten.

• The covered revenue streams are defined. What counts as "YouTube ad revenue" for purposes of the revenue share is specified in the offering documents.

This certainty is a feature, not a limitation. It protects you from unexpected changes to your obligations, and it protects Investors by ensuring they know exactly what they are receiving. Both parties can plan around known, stable terms.

The takeaway for Creators is straightforward: invest time in understanding and negotiating the terms before the offering launches. Once they are set, they are set. GigaStar's team works with you to ensure the terms are ones you can live with — but the responsibility to engage thoughtfully in that process is yours.

For a broader view of how to position your channel for success, read the parent guide: How to Prepare Your Channel for Crowdfunding.

Key Takeaways

• The revenue share percentage is the core term. It defines the portion of your YouTube ad revenue distributed to CRT holders each month and remains constant throughout the offering term.

• Only YouTube ad revenue is typically included. Sponsorships, merchandise, memberships, and other income streams are not part of the revenue share.

• Distributions happen Monthly. Revenue is calculated each month, the percentage is applied, and the resulting amount is distributed proportionally to all CRT holders.

• The offering has a defined term. Your revenue share obligation has an end date — when the term expires, you retain 100% of your ad revenue.

• Distributions scale with your revenue. When revenue is up, distributions are higher in dollar terms. When revenue is down, they are lower. The percentage stays the same.

• Terms are set before launch and do not change. The percentage, term, and covered revenue are documented in the Form C and become binding after the offering closes.

• Plan for the cash flow impact. Factor the Monthly distribution into your budget to ensure the revenue share percentage you agree to is sustainable over the full term. Start your application at https://apply.gigastarmarket.io/.

Frequently Asked Questions

What revenue is included in the revenue share?

The revenue share in a GigaStar Channel Revenue Token offering is based on YouTube ad revenue generated by the specific channel associated with the offering. This includes revenue from display ads, overlay ads, skippable and non-skippable video ads, and bumper ads served through the YouTube Partner Program. YouTube Premium revenue allocated to your channel is also typically included. Other income streams such as sponsorships, merchandise sales, channel memberships, Super Chats, affiliate income, or revenue from external platforms are not included in the revenue share calculation.

How often are distributions made to Channel Revenue Token holders?

Distributions to Channel Revenue Token holders are made on a Monthly basis. Each month, the Creator's YouTube ad revenue is calculated, the agreed-upon percentage is applied, and the resulting amount is distributed proportionally to all CRT holders based on the number of tokens each holds. The timing of distributions aligns with YouTube's own payment schedule to the Creator, which typically processes around the 21st of each month for the prior month's earnings.

Can the revenue share percentage change after the offering closes?

No. The revenue share percentage is set during the offering structuring phase and documented in the Form C filing with the SEC. Once the offering closes, this percentage is a contractual commitment and does not change for the duration of the offering term. This provides certainty for both Creators and Investors — the Creator knows the exact percentage that will be shared each month, and Investors know exactly what share of revenue their Channel Revenue Tokens represent.

What happens to the revenue share if my channel revenue decreases?

The revenue share percentage remains the same regardless of revenue fluctuations — it is a fixed percentage, not a fixed dollar amount. If your channel revenue decreases, the dollar amount distributed to CRT holders decreases proportionally. For example, if your revenue share is 10% and your monthly revenue drops from $8,000 to $5,000, the distribution drops from $800 to $500. This percentage-based structure is inherently more manageable than a fixed-payment obligation because your cost scales with your actual earnings.

This content is for educational purposes only and does not constitute investment advice. Channel Revenue Token investments involve significant risk, including potential total loss of invested capital. Past performance does not predict future results.