Commission Architecture Across Brands
The Cannibalization Problem
When an affiliate promotes two brands owned by the same operator, commission design determines which brand gets traffic. If Brand A pays $300 CPA and Brand B pays $180 CPA, rational affiliates will push all traffic to Brand A -- even if Brand B converts higher-value customers. This is cannibalization, and it destroys portfolio-level revenue.
The fix is not to pay the same rate on every brand. Different brands have different margins, different player or trader values, and different conversion profiles. The fix is to design commission structures that align affiliate incentives with portfolio-level outcomes.
Commission Topology Options
| Model | Description | When to Use |
|---|---|---|
| Brand-specific flat deals | Each brand has its own CPA/RevShare rate | When brands have very different margins or serve different markets |
| Portfolio-weighted deals | Commission rate adjusts based on traffic distribution across brands | When you want affiliates to promote the full portfolio, not just the highest-paying brand |
| Cross-brand escalation | Affiliate tier rises based on combined volume across all brands | When you want to reward total partnership value regardless of which brand converts |
| Unified RevShare with brand multipliers | Base RevShare applies to all brands with multipliers for priority brands | When one brand needs more affiliate attention (new launch, re-positioning) |
Cross-Brand Escalation in Practice
Cross-brand escalation is the most effective model for operators who want affiliates to treat the portfolio as one program. The affiliate earns a base commission on each brand, but their tier -- which determines the commission rate -- is calculated from their combined performance across all brands.
- An affiliate sends 50 FTDs to Brand A and 30 FTDs to Brand B in a month
- Their combined total of 80 FTDs qualifies them for Tier 3 commission rates
- Tier 3 rates apply to both Brand A and Brand B conversions
- Without cross-brand escalation, they would be Tier 2 on Brand A and Tier 1 on Brand B
Cross-brand escalation incentivizes affiliates to diversify traffic across your portfolio. A partner close to a tier threshold will actively look for ways to send traffic to your lower-volume brands, which is exactly the behavior you want.
Preventing Internal Brand Competition
Beyond commission design, you need rules that prevent your own brands from competing against each other for the same affiliate traffic. Brand bidding policies should specify which brands an affiliate can bid on in paid search. Promotional calendars should stagger brand campaigns so affiliates are not forced to choose which brand to feature during the same period.
- Set clear brand bidding rules: affiliates cannot bid on Brand A keywords when Brand B is running a paid campaign
- Stagger promotional periods so brands do not compete for the same affiliate attention simultaneously
- Use portfolio-level bonuses that reward balanced traffic distribution
- Monitor brand-to-brand traffic shifts monthly -- a sudden swing signals cannibalization
Vertical-Specific Commission Considerations
In iGaming, multi-brand commission design must account for different NGR margins across casino, sportsbook, and poker brands. A 30% RevShare on casino NGR has very different unit economics than 30% RevShare on sportsbook NGR due to hold percentage differences. Use brand-specific base rates that normalize for margin.
In Forex, multi-brand IB structures often use lot-based rebates that vary by brand based on average spread or execution model. An ECN brand and a Standard account brand generate different revenue per lot, so IB rebates should reflect that. In prop trading, challenge-based brands with different fee structures need commission rates that align with actual revenue per funded trader.
Never set commission rates in isolation per brand. Always model the portfolio-level economics first, then allocate rates per brand that total to a sustainable cost of acquisition across the entire portfolio.
Key Takeaways
- Cannibalization happens when affiliates rationally shift traffic to whichever brand pays the most
- Cross-brand escalation tiers are the strongest tool for aligning affiliate behavior with portfolio goals
- Brand-specific commission rates should reflect margin differences, not arbitrary parity
- Staggered promotions and brand bidding rules prevent internal competition for the same affiliate traffic
- Always model portfolio-level economics before setting per-brand commission rates
Explore Further
Key terms and tools related to this lesson. Deepen your understanding and see how Track360 supports these concepts.
Commission Model
The structural rule set that determines how affiliates are paid for the traffic and users they refer, covering trigger events, calculation basis, deductions, and payout frequency.
Affiliate Program
A structured partnership where a business rewards external partners (affiliates) for driving traffic, leads, or conversions through tracked referral activity.
Payout Model
The structure that defines how and when affiliates are compensated for referred activity, including fixed payments, revenue shares, or hybrid combinations.
Conversion Rate
The percentage of clicks or visitors that complete a desired action, such as making a first deposit, opening an account, or purchasing a trading challenge.