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RevShare
Definition
A payment model where affiliates receive a percentage of the revenue generated by referred customers over time. Common in gambling and subscription offers.
In Detail
RevShare (Revenue Share) is a payment model that creates a long-term income stream rather than a one-time payout, making it the preferred model for experienced affiliates who think strategically about building wealth. Under RevShare, instead of receiving a fixed CPA for each referred customer, the affiliate earns a percentage of the revenue that customer generates over their lifetime. In gambling, RevShare rates typically range from 25% to 45% of net gaming revenue (NGR), which is the player's losses minus bonuses and processing fees. A practical example illustrates the power of RevShare: if an affiliate sends 100 players to a casino on a 30% RevShare deal, and each player generates an average of $500 in NGR over 12 months, the affiliate earns $150 per player, totaling $15,000 from that single cohort. Compare this to CPA: at $80 per deposit, the same 100 players would generate $8,000 — significantly less. However, RevShare carries risk: if players win, the affiliate earns nothing or may even accrue negative balances with some programs. Many experienced affiliates negotiate hybrid deals combining a smaller CPA ($20-$40) with a reduced RevShare (15-20%) to balance immediate cash flow with long-term earnings. In affiliate marketing careers, understanding RevShare economics is essential for roles focused on gambling, forex, and subscription verticals, where customer lifetime value drives the business model.
Related Terms
CPA (Cost Per Action)
A pricing model where advertisers pay for a specific action taken by a user, such as a purchase, sign-up, or deposit. CPA is the most common model in affiliate marketing.
LTV (Lifetime Value)
The total revenue a customer generates throughout their relationship with a business. Used to determine how much to spend on acquiring customers.
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