RevShare

RevShare (Revenue Share) is a reward system, where the payout for affiliates is generated from the profit that referred users bring. This model is in high usage in the iGaming vertical and other niches where client monetization is cycled.

For example, if a player's loss is 500 EUR, and the affiliate has a 40% share, the payout will be 200 EUR. The deal has time frames. In other words, payments will be received throughout the entire period as long as the client remains active.

CPA vs RevShare: Analysis of Advantages and Risks

CPA is a one-time fixed payment for a target action (usually, it's FTD). And RevShare is a general share of the player's losses. RevShare provides passive income and high earnings from a single user. Hence, there's a clear motivation to seek quality traffic, whereas the CPA model is primarily focused on one-time interactions.

The main disadvantage is a lack of stability. A gambler's winning means a loss to the affiliate. This way, ROI can stretch over weeks or even months. There's also a risk of a negative balance. It occurs when the user wins a substantial amount or has a streak of small wins. Some affiliate programs specify their policy for negative balances.

Top Verticals with RevShare Payouts

It works well with gambling, financial technologies, cryptocurrency platforms, dating services, and subscription-based products. Such offers benefit both advertisers and arbitrage specialists. The key success factor in RevShare is attracting active users with high potential for long-term product engagement.

Why is it Important to Calculate LTV When Working with RevShare?

LTV (Lifetime Value) represents the total profitability of an individual user throughout their entire interaction lifecycle with the product. If the LTV is high, the affiliate will earn a higher commission. The metric is affected by:

• GEO;
• traffic solvency;
• product quality;
• player retention;
• traffic format;
• warming up (pre-qualification).

If traffic brings users with high LTV, RevShare enables increasing income without incurring additional costs. That is why experienced affiliates try to retain players in their network for as long as possible.