Wix Transforms Revenue Sharing for Partners, Significantly Increasing Opportunities to Earn on Wix

Rhea-AI Summary

Wix.com Ltd. (NASDAQ: WIX) announces a new revenue sharing plan for Partners creating on Wix Studio, providing opportunities for agencies and freelancers to earn revenue share from day one. The plan includes a 20% rev share on every new Studio site created in 2024, with the highest level Partners enjoying 30% revenue share. Partners can also earn revenue share based on client sales, receive benefits for Enterprise packages, and diversify their revenue streams. The program aims to empower Partners to achieve their business goals.

Insights

Market Research Analyst

The introduction of Wix.com Ltd.'s new revenue sharing plan for Partners is a strategic enhancement to the Wix Partner Program, which could potentially increase the platform's attractiveness to agencies and freelancers. This move is likely to incentivize the creation of more sites on Wix Studio, potentially driving up the number of active users and, by extension, the overall usage of Wix's services. The plan's tiered revenue share structure, offering up to 30% for top-tier partners, aligns with competitive affiliate marketing practices and can be seen as a way to foster loyalty among Wix's partners.

In the context of the Software as a Service (SaaS) industry, where customer acquisition and retention are pivotal, this program may enhance Wix's market position by leveraging the network effects of its partners. The diversified types of revenue shares, including client sales through Wix Payments and enterprise packages, indicate a push towards greater ecosystem integration. This could lead to increased transaction volumes and higher average revenue per user (ARPU), metrics critical to investors and analysts assessing the company's performance and future growth potential.

The requirement for partners to generate at least one premium site per year serves as a retention strategy, ensuring that partners remain active within the ecosystem. However, this could also be a barrier to entry for some potential partners. The long-term success of this initiative will depend on the balance between incentivizing content creation and maintaining a quality threshold for partners.

Financial Analyst

Wix's announcement of an expanded revenue sharing program could have a meaningful impact on its financials. The direct implication of this initiative is the potential for increased revenue streams through the incentivization of partner-driven sales. By offering a substantial revenue share on new Studio sites, Wix is effectively investing in its salesforce without incurring the fixed costs associated with a traditional sales team. This variable cost model aligns expenses with revenue, which could lead to improved profit margins if the program is successful.

Furthermore, the emphasis on enterprise packages, which carry a 50% revenue share, indicates a strategic focus on higher-value clients. This segment typically yields higher margins and can contribute significantly to the bottom line. The diversified revenue share model also mitigates the risk of revenue concentration, which is a key consideration for stakeholders.

Investors will be watching closely to see how this program influences Wix's customer acquisition cost (CAC) and lifetime value (LTV) metrics. A successful partner program could reduce CAC and increase LTV, both of which are crucial for the SaaS business model's sustainability and scalability. However, the terms of the program, including the retention condition and eligibility criteria, will need to be monitored for their impact on partner engagement and overall program uptake.

Economist

The expansion of Wix's revenue share program can be interpreted as a response to the broader economic principle of incentivizing productivity through profit sharing. By aligning the interests of Wix with those of its partners, the program is designed to stimulate the creation of new digital assets within the Wix ecosystem, which could contribute to economic growth in the digital sector. The program's potential to increase the number of premium sites and packages could have a multiplier effect, stimulating activity among web developers, designers and associated digital services.

From an economic standpoint, Wix's strategy leverages the gig economy by empowering freelancers and agencies to generate income through the platform. This could foster entrepreneurship and innovation within the Wix community. However, the effectiveness of such a program is contingent on market conditions, including competition from other SaaS platforms and the demand for digital presence solutions.

It will be important to analyze the broader economic impact of this program, including how it affects labor dynamics within the digital economy. If successful, Wix's program could serve as a case study for profit sharing as a mechanism for driving economic activity and innovation in the tech industry.

Partners can earn revenue share from day one when creating on Wix Studio, further enriching the financial advantages of the Wix Partner Program

NEW YORK, Jan. 10, 2024 /PRNewswire/ -- Wix.com Ltd. (NASDAQ: WIX), the leading SaaS website builder platform to create, manage, and grow a global, digital presence¹, today announced a new revenue sharing plan for Partners creating on Wix Studio, the ultimate creation platform built for agencies and freelancers. The new revenue share plan is part of the exclusive Wix Partner Program which is a loyalty-based program with benefits such as priority support, a Partner success manager, eligibility to join the Wix Marketplace, advanced features, and collaboration opportunities within the Wix community. These benefits are designed to empower professionals and fuel their business growth.

Agencies and freelancers can now apply to join through the Wix Studio Workspace, a dashboard designed for agencies and freelancers to manage all of their projects seamlessly. From the moment they join the new program, Partners can start earning revenue share on Wix Studio sites they've created.

The revenue-sharing program includes:

• Rev Share on Wix Studio Sites: Partners will receive a 20% rev share on every new Studio site created in 2024, subject to the Wix Partner Program eligibility conditions. All Partners in the highest level of the program will enjoy 30% revenue share for their Studio sites created in 2024 along with 20% for Wix sites.
• Payment Volume Earnings Based on Client Sales: Partners can earn a revenue share of the client sales on client sites processing with Wix Payments.
• Enhanced Enterprise Benefits: Both new and existing Partners are eligible for a 50% revenue share for Enterprise packages signed during 2024, including renewals.
• Diversified Types of Revenue Shares: The expanded revenue sharing program extends beyond website revenue to build a multifaceted income stream. Partners can now earn revenue shares for a variety of packages, including the Branded App, Wix Logo Maker, Google Ads, mailboxes and more.

"Wix Partners play a critical role in the Wix ecosystem and we're thrilled to significantly broaden earnings opportunities to reflect our commitment to them," said Michal Bignitz, VP of Partners at Wix. "The new program is designed to empower Partners to start earning on day one, through a lifetime partnership with multiple growth opportunities. We look forward to continuing to develop our thriving ecosystem where every Partner can achieve their business goals."

To qualify for the new revenue sharing program, Partners must be the first owner of the Wix site and the program applies exclusively to new yearly plans, sites, and packages. Participants in the program are subject to a retention condition, requiring the generation of at least one Wix premium or Wix Studio premium site per year to qualify for the revenue share and the Partner program's benefits. The terms of the program are subject to change.

The new revenue sharing plan is open to Partners globally subject to the limitations that apply to the Partner Program. 

More information about the new revenue-sharing plan can be found here.

About Wix.com Ltd.

Wix is the leading SaaS website builder platform to create, manage, and grow a global, digital presence¹. What began as a website builder in 2006 is now a complete platform providing self-creators, agencies, and enterprises, with distinguished performance, security, and a reliable infrastructure. With a focus on continuous innovation, a wide range of commerce and business solutions, advanced SEO, marketing tools, and industry-leading AI technologies, Wix users have full ownership of their brand and unmatched creative freedom. Complimenting the Wix platform for self-creators, Wix Studio is an advanced creation and management platform for agencies and freelancers.

For more about Wix, please visit our Press Room.
Media Relations Contact:  PR@wix.com

¹ Based on number of active live sites as reported by competitors' figures, independent third-party-data and internal data as of Q3 2023.

 

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SOURCE Wix.com Ltd.

FAQ

What did Wix.com announce regarding revenue sharing for Partners?

Wix.com announced a new revenue sharing plan for Partners creating on Wix Studio, offering opportunities to earn revenue share from day one.

What is the revenue share percentage for new Studio sites created in 2024?

Partners will receive a 20% rev share on every new Studio site created in 2024, with the highest level Partners enjoying 30% revenue share.

What are the benefits for Partners based on client sales?

Partners can earn a revenue share of the client sales on client sites processing with Wix Payments.

Who is the VP of Partners at Wix?

Michal Bignitz is the VP of Partners at Wix.

What are the eligibility conditions for the revenue sharing program?

Partners must be the first owner of the Wix site, and the program applies exclusively to new yearly plans, sites, and packages. Participants in the program are subject to a retention condition, requiring the generation of at least one Wix premium or Wix Studio premium site per year to qualify for the revenue share and the Partner program's benefits.