How do Cloud Mining Websites Divide Profits?
There are many different reward schemes used. One thing almost all of them have in common is that they base the rewards on "shares". Each miner earns one or more shares by producing hashes that are sufficiently low. Essentially, miners prove they're actually trying to find blocks by providing a sample of their best attempts to the mining controller.

Reward schemes generally try to do two things:


They try to even out the reward so that miners have less variation in the rewards they get if they mine at a constant rate.
They try to prevent people from strategically joining or leaving different mining pools to prevent schemes that give miners more than their fair share.


The simplest scheme is called PPS (pay per share). With PPS, each share earns a fixed reward, regardless of how well or badly the pool as a whole does. This provides the least variation to miners, but gives the pool operator the most risk.

One of the most common sharing mechanisms is called PPLNS (pay per last N shares). With PPLNS, when a block is found, the reward is divided among those who earned the most recent shares, proportional to the number of shares each miner found during that window.

Other schemes can get fairly complex.