# How do creator splits work?

As part of the Creator Splits feature, each creator earns a percentage of revenue from the sales and secondary royalties of a product drop, based on their contribution.

Each time a product NFT is purchased via wallet or credit card, the funds flow into the smart contract, ready to be distributed to the creators involved. Read more [here](how-to-distribute-funds) about how the smart contract distributes funds.

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Each creator involved in the collaboration are attributed onchain with programmed revenue splits and creator artifacts. The artifacts submitted by creators as part of the product creation flow can be open source or gated, depending on the creator’s product drop strategy. Once an artifact has been submitted into the CrowdmuseProduct NFT smart contract, it will forever be authenticated to that profile.&#x20;

This results in the development of onchain co-ownership models that distribute risk amongst the collective to provide asymmetric risk reward ratio: the chance of exponential return is slightly higher than dealing with financial risk individually. &#x20;

As these creator networks scale and become more open, new players entering can tap into their favorite creator libraries to compose new experiences.
