Affiliate programs offer to drive traffic to offers with different payment models – for a targeted action, confirmed order, active player and so on. Sellers avoid spending on ineffective advertising, and affiliates, in turn, receive money for attracted users. As a result, everyone is on the plus side.
In the article we will tell about such a model as RevShare, pros, cons and features of working with it.
What is Revshare?
Revenue Share is a payment model in affiliate marketing in which the webmaster is rewarded with a percentage of the advertiser’s revenue from leads.
Most often revshare is used in the gambling and betting verticals, in other words – online casinos and betting companies.
For example, if you joined a store’s affiliate program, choosing the RevShare payment model, and you are offered 25% of every purchase made by the users you referred to. Let’s assume that in a month you attracted several users who clicked on your link and made purchases worth $10 000. In this case, your RevShare earnings will amount to $2500.
It is important to understand that RevShare is not a payment for deposits, but a payment that depends on the net profit of the advertiser himself. That is, if the person you attract will constantly win, and the casino will lose money on it, you will also get nothing.
Beginners in affiliate marketing often prefer the CPA model over revshare. Although CPA seems more reliable, in practice RevShare turns out to be more effective. If you look at successful cases, you can see that in almost every case RevShare model was used.
Such effectiveness and popularity attract attention. There is every reason to scrutinize the model and understand its features.
Revshare Features
Details worth knowing about, let’s consider the example of the gambling vertical:
Generating payouts
Payouts depend not only on the percentage of revshara and the amount of casino revenue, but also on the presence of admin commission. These payouts include various components, such as bonuses received by the player, commissions paid to slot machine providers and payment processors, as well as administrative fees, site maintenance and currency transfer losses. For example, working with an affiliate network at a revshare of 25% may be more profitable than an affiliate network offering a revshare of 40% if the commission is higher.
Increasing the percentage
Affiliate networks can set a variable revshare percentage, which depends on the number of leads and deposits over a certain period of time. The more leads and deposits, the higher the payout percentage. If the webmaster stops bringing in new customers, the revshare percentage can be reduced or canceled. Although this approach is not approved in the community, some advertisers still use it.
Postclicks
Affiliate networks have their own rules regarding the period of storage of visitor data after clicking on an affiliate link. For example, if the postclick period is set at 30 days, and the user who registered through this link has not made a deposit for this period, then he ceases to be associated with the webmaster who attracted him. Further spending by this user is only counted by the casino and is not included in the calculation of revshare for the webmaster.
Limits
Some may put a limit on the profit from the brought lead. That is, if the player for all time brought the webmaster $2000, and this amount is the ceiling in the affiliate, then the subsequent spending will not be tied to a particular web.
Duration
Do not confuse it with postclicks. The condition can be the duration of user binding, for example, 30 days, and after the expiration of the term, the spending of the brought player no longer brings income to the affiliate.
LTV
The user you brought in 2 years ago is still playing at the advertiser’s casino. If the conditions allow, you will get money from him while he is still playing, even after 3 years.
Working capital
A large amount of working capital. You can wait a long time for the first payout, as many users may simply register and not make the first deposit.
Checkpoints
Certain actions of the user, at the onset of which payouts will start coming, for example, baseline or reaching a specific status.
Conclusion
RevShare is a good option for those who are not afraid to take risks. Profit is gained by those who produce good traffic and have patience in terms of payouts. For beginners in affiliate marketing it will be better to start with CPA and then move to RevShare. You can analyze and study information for a long time. The best way is to try it when you are ready. And if you are reading this article, then you are ready)
We wish you good luck!
