RevShare

There are different commission types in affiliate marketing: CPA, CPS, CPL, and many others. Also, affiliates often face RevShare. Let’s understand the peculiarities of this type of commission in detail.

RevShare Meaning

RevShare, or revenue sharing, is a commission type where affiliates earn a percentage of the revenue generated from their referred customers or sales. It is a common compensation model used by affiliate networks and programs to incentivize affiliates to drive valuable traffic and generate sales for the merchant or advertiser.

With the CPA model, in most cases the affiliate receives a one-time payment. The difference with RevShare is that you will receive commissions multiple times over a certain period.

So, Revenue Share is a revenue generation model where advertisers share a percentage of their revenue with affiliates. Most often, there are offers with RevShare commissions ranging from 1% to 75%.

Advantages of RevShare for Affiliates

This type of commission has several advantages:

• RevShare offers the potential for higher commissions. If you attract high quality traffic that doesn’t generate a lot of returns, you can generate more revenue compared to the CPA model;
• RevShare offers a steady income even after the end of the advertising campaign, and some affiliate networks provide RevShare lifetime.

However, RevShare comes with increased risk. You are responsible for managing billing to ensure profitability, taking into account factors such as the percentage of refunds and customer chargebacks from your referrals.

In Which Verticals is RevShare Used?

This type of commission is most commonly used in the following verticals:

• Gambling: It includes online casinos with slot machines (slots), roulette, arcades, and table card games. Payouts are based on a percentage of the money earned by the casino;
• Betting: Betting resources offer bets on sports and cyber sports events and various large-scale events in the world. The affiliate receives a percentage of the amount of money earned by the betting site;
• Dating: Payouts are based on a percentage of the user’s subscription fees, premium account purchases, and additional service elements;
• Finance: It’s a vertical of financial brokers, microloans, loans and mortgages. Payouts are based on a percentage of the cost of financial services, insurance, and a percentage of the loan volume.

When to Choose RevShare?

Choosing RevShare offers is worth it if you are confident in your user acquisition skills and are ready to invest in long-term profitability. Keep in mind that choosing RevShare requires more effort to attract customers or referrals for advertisers.

RevShare is not about immediate commissions. But this type offers more favorable financial returns in the medium to long term. Be prepared that you may not earn anything from promoting an offer in the first month, but in the following 12 months you have the potential to earn significantly more.

How is RevShare Calculated?

RevShare payout percentages are calculated in different ways. For example, based on the revenue the advertiser receives from customers or referrals brought in by the affiliate.

Also, affiliates can receive a fixed amount per purchase made by a referral, regardless of price changes. 

Whichever option you choose, it’s important to carefully review the terms of the agreement to avoid misunderstandings.

Some affiliate networks offer a “lifetime” RevShare, while others have a limited duration, such as 12 months.

Which to Choose: CPA or RevShare?

 When choosing between CPA and RevShare, we recommend considering parameters such as:

• Your traffic source;
• Target audience;
• Advertising materials.

Evaluate whether you want to make money right now or if you want to provide yourself with a steady income, but over a longer distance.

Also, we have a comprehensive guide on How to Choose a Commission Type in Affiliate Marketing: CPA vs RevShare.

Related articles:

• What is CPA Marketing;
• CPA vs RevShare: How to Choose a Commission Type in Affiliate Marketing;
• Top 15 High-Paying CPL Networks.