RevShare Models: Revenue-Based Partnerships

RevShare, or Revenue Share, pays affiliates an ongoing percentage of the revenue generated by the customers they refer. Unlike CPA, the affiliate earns as long as the customer remains active. This creates a fundamentally different relationship between operator and partner.

How RevShare Is Calculated

The calculation depends on what you define as "revenue." This is where RevShare gets nuanced, and where many operators make mistakes. The revenue base you choose directly affects both your cost and the affiliate perception of the deal.

• GGR (Gross Gaming Revenue): Total bets minus total wins. Common in iGaming. Simple but can result in negative months if players win big.
• NGR (Net Gaming Revenue): GGR minus bonuses, taxes, and operational costs. Lower base, but more sustainable for the operator.
• Net Revenue: Revenue after all direct costs. Used in Forex and prop trading, typically based on spreads, commissions, or challenge fees.
• Spread/Commission Share: In Forex, RevShare is often calculated as a percentage of the spread or trading commission generated by referred clients.

Typical RevShare Ranges by Vertical

Advantages of RevShare

• Aligned incentives: Affiliates benefit from sending high-quality, long-term customers because their earnings grow with customer activity.
• Lower upfront cost: No immediate cash outlay, payments come from actual revenue generated.
• Natural fraud filter: Fake accounts generate zero revenue, so affiliates have no incentive to send fraudulent traffic.
• Scalable: As customer value grows, both you and the affiliate earn more, creating a true partnership dynamic.

Risks and Challenges

• Harder to recruit affiliates. Many partners, especially media buyers, prefer predictable CPA income over long-term RevShare.
• Negative carryover. In iGaming, if players win big in a given month, the RevShare can go negative. You need clear policies on whether negative balances carry forward.
• Long payback period. You may need months of customer activity before the affiliate has earned what they would have received from a CPA deal.
• Complexity. Tracking, calculating, and reporting RevShare requires more sophisticated systems than flat CPA payouts.

When RevShare Works

RevShare is ideal when your customers have high lifetime value and long retention. If your average customer stays active for 12+ months, RevShare lets you share the upside without overpaying on acquisition. It also works well with content affiliates and SEO partners who build long-term traffic sources and are willing to wait for compounding returns.

RevShare is less effective when you need rapid affiliate recruitment, when your customer retention is short, or when you are entering a market where competitors offer aggressive CPA rates.