Commission Model

A commission model is the structural answer to two questions: what event triggers payment, and how much is paid for it. The main families across iGaming, Forex, and Prop Trading are CPA (flat fee per qualifying conversion), revenue share (recurring percentage of user-generated revenue), hybrid commission (a smaller CPA combined with revenue share), lot-based commission (a fee per traded lot in forex), spread-based commission (a share of broker spread), and multi-tier commission (a percentage of sub-affiliate earnings). Each model rewards different traffic behavior and shifts risk differently between affiliate and operator.

Operators select a commission model based on user lifetime value, traffic source predictability, and cash-flow tolerance. High-LTV verticals such as iGaming and IB-driven forex favor revenue share because it aligns affiliate incentives with long-term retention. Short-LTV traffic or unproven affiliates often start on CPA to limit operator exposure to retention risk. Hybrid models are common for affiliates who deliver consistent quality, since they pay enough cash up front to keep the affiliate active while preserving the operator's share of long-term revenue. The commission structure document should specify trigger event, calculation basis, deductions, qualification rules, and payout cadence.

Common pitfalls in commission model design include over-simplified comparisons (CPA versus RevShare without considering the actual cohort economics), unclear deduction rules, payout thresholds that trap small affiliates, and tier escalators that are mathematically unreachable. Comparing alternatives directly via CPA vs revshare or revshare vs hybrid commission helps both sides understand the tradeoffs. Operators that change models mid-relationship without renegotiation create reputational damage that lasts longer than the cost saving, so the model design needs to fit both current economics and a realistic 12-month outlook.