RevShare and CPA are popular payment models used in the gambling vertical. Most often those are the models used by Affstream advertisers when working with web specialists. This can be attributed to the specifics of gambling offers. Let’s have a look at what these models are, what are their advantages and disadvantages, and how payments are calculated
Advertisers in the gambling vertical in LatAm offer RevShare and CPA due to the specific nature of iGaming. Casinos can’t always predict profits accurately. The casino’s earnings depend on the traffic that arbitrators provide, as well as what kind of players there are, for instance for how much and for how long they will be playing. Therefore, when collaborating with webmasters, casinos prefer either a fixed payment for leads or a percentage of the profit. These payment models are more profitable for casinos than payment for app downloads or other models.
Next, we will analyze the features of each model:
RevShare or Revenue Share, is a payment model where the webmaster receives a certain percentage of the advertiser’s (casino) income for the entire time that the player referred by the webmaster makes deposits or loses.
CPA or Cost Per Action is a payment model in which the webmaster gets a fixed payment for the player’s target action. For example, for making a first deposit, for making a deposit equal to a certain amount, for example, not less than $50, less often – for resigning up on the casino website.
Features of the CPA model:
Besides these two models, there is also a Hybrid model. It combines CPA and Revshare. For example, a webmaster receives a fixed amount for the player’s targeted action and then a percentage of the casino’s income from all subsequent expenses of this player.
Working with the Hybrid model is similar in complexity to RevShare: the advertising campaign must be organized in such a way as to convince people to not simply sign up, but to play regularly. This is more difficult than bringing in a lead or player with the first deposit. The Hybrid model requires high-quality traffic. But the difficulties are compensated by all the advantages of the RevShare model, plus the webmaster also receives additional income for targeted actions.
The CPA model is calculated based on the advertiser’s bid. Usually, this rate is fixed. For example, an advertiser might pay a nominal $80 for a player making a deposit. For some advertisers, the CPA value may vary depending on the source of the traffic. For instance, if an affiliate attracts a player from a cheap source like clickander – such traffic may be paid lower than traffic from social networks or ASO. It’s best to check with your manager in advance for details.
The RevShare model is calculated based on the formula offered by each casino operator advertiser.
For example, one of the popular formulas is:
Affiliate marketer income = NGR x RSValue
The NGR value is usually calculated using the formula:
NGR = GGR – Bonus Fee – Payments Fee – Provider Fee – Admin Fee
The GGR indicator is also calculated using its own formula:
GGR = TotalBets – TotalWins
When choosing a traffic source, you need to start by considering 2 important factors:
Advantages of the CPA model
The answer to this question depends on the terms and conditions of an individual advertiser. For example, let;s say there are casinos that offer lifetime revshare. This means that the webmaster will always receive income – as long as the player plays. The attracted player can play for several weeks, months or even years. Thus, this is receiving passive income. In fact, income can be received until the casino itself closes down.
In rare cases, the advertiser will impose a condition that requires RevShare to be paid within a certain period if the player continues to play. For example, during the first six months. Then payments should stop. But such rules are less common; most often the revshare is for lifetime, that is, tied to LTV – the lifetime value of a client-player.
CPA and RevShare payment models represent different approaches to affiliate marketing. It is impossible to say which model is better and which is worse: each has its own characteristics. The choice should be determined by the webmaster’s strategy, their experience, plans, and preferences, as well as their budget. The RevShare model is risky but can bring more profit, while the CPA model is perfect for beginner affiliate marketers with a small budget and can also provide good profits, especially on large volumes.
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