Tiered RevShare vs Flat RevShare
Flat RevShare pays a fixed percentage regardless of volume. Tiered RevShare increases the percentage as affiliates hit higher performance thresholds.
What it means in practice
Tiered RevShare and flat RevShare are two approaches to structuring revenue share commission deals. The core difference is whether the percentage paid to an affiliate changes based on their performance volume or stays constant regardless of how much business they generate.
Flat RevShare applies a single, fixed percentage to all revenue generated by an affiliate's referred players. If the deal is 30% NGR, the affiliate earns 30% whether they send one player or one thousand. It is straightforward, easy to explain, and predictable for both sides.
Tiered RevShare uses performance tiers to increase the percentage as the affiliate reaches defined thresholds - for example, 25% NGR for 0-20 FTDs per month, 30% for 21-50 FTDs, and 35% for 51+. This structure motivates growth, rewards scale, and gives operators better margin protection at lower volumes where acquisition costs are proportionally higher.
The choice between tiered and flat RevShare reflects a broader program philosophy. Tiered structures treat affiliate relationships as partnerships that evolve with performance. Flat structures prioritize simplicity and equal treatment. Many mature programs use tiered commissions as their default because the growth incentive outweighs the added operational complexity.
Tiered RevShare vs Flat RevShare
Side-by-side breakdown of how these two models compare across key dimensions.
Advantages
- Motivates affiliates to grow their traffic and earnings
- Protects operator margins at lower volume levels
- Rewards top performers with higher rates automatically
- Creates natural affiliate retention through tier progression
Limitations
- More complex to explain during affiliate recruitment
- Starting rates may appear less competitive
- Requires accurate volume tracking and tier calculation
Advantages
- Simple to communicate and understand
- Attractive to new affiliates - no ambiguity about rates
- Easy to manage with minimal overhead
Limitations
- No incentive for affiliates to increase volume
- Top performers may feel undervalued and seek better deals
- Operator pays the same rate on low-quality and high-quality traffic
When to choose which
Choose Tiered RevShare
Choose tiered RevShare when you want to incentivize affiliate growth, retain top performers, and protect margins at lower volumes. Tiered structures work well in programs with a wide range of affiliate sizes where you want to differentiate deal quality based on performance.
Choose Flat RevShare
Choose flat RevShare when simplicity is the priority - especially for new programs, smaller affiliate bases, or when recruiting affiliates who value predictability. Flat rates are easier to communicate and may attract affiliates who are comparing deals across programs.
How Tiered RevShare vs Flat RevShare works across industries
See how tiered revshare vs flat revshare is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 supports both tiered and flat RevShare configurations with automated tier calculation, real-time progress tracking, and transparent reporting. Operators can define custom tier thresholds, set rates per tier, and let the system automatically apply the correct percentage as affiliates hit their targets.
Frequently Asked Questions
Common questions about tiered revshare vs flat revshare, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
Flat RevShare pays the same percentage regardless of affiliate volume. Tiered RevShare increases the percentage as affiliates reach higher performance thresholds. Tiered structures reward growth; flat structures prioritize simplicity.
Related Terms
RevShare (Revenue Share)
RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.
Tiered Commission
A tiered commission is a commission model where payout rates increase as affiliates or IBs reach higher performance thresholds, such as monthly conversion volume or revenue generated.
Performance Tier
A performance tier is a structured level within an affiliate program where partners earn progressively higher commissions or additional benefits as they meet defined volume, revenue, or quality thresholds.
NGR (Net Gaming Revenue)
NGR is the revenue that remains after an operator deducts costs such as bonuses, taxes, and platform fees from GGR. It is a common base for RevShare calculations in iGaming affiliate programs.
Dynamic Commission
A dynamic commission is a commission structure that automatically adjusts based on predefined rules such as performance thresholds, volume tiers, traffic quality scores, or time-based conditions.
Hybrid Commission
Hybrid commission combines two payout models, most commonly CPA and RevShare, in a single affiliate deal so operators can reward both conversion volume and long-term customer value.
Continue Learning
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