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What is total revenue share?

Total revenue share

Total revenue share is a measure of the profitability of a product, taking into account marketing costs as well as manufacturing costs. It’s a ratio of costs required to fulfil an order.

Where have you heard about total revenue share?

You may see this mentioned in company reports. It represents the direct costs associated with revenue, such as raw materials, labour and fuel. The remainder is considered gross margin, which is the total sales income after the cost of producing the goods sold has been deducted.

What you need to know about total revenue share.

Total revenue share is expressed as a percentage. It’s worked out by adding the marketing and product costs together, and dividing that figure by the total revenue. Total revenue share will indicate the total percentage of a company’s revenue that is absorbed by product cost and marketing cost.

Indirect costs, such as rent and accounting expenses, can’t be linked directly to a product, so aren’t included.

Find out more about total revenue share.

Read our definitions of gross revenue and gross margin.

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