Welcome, community! Today there are many models with which we can monetize traffic. Today we will learn what RevShare is. Many affiliate marketers avoid this model, particularly because they do not fully understand the principles behind the calculations. Therefore, we decided to do a detailed review of RevShare so that you no longer have any questions about it!
But before we start, let’s remind you that we discuss other payment models in other materials. We also recommend checking out the affiliate marketing glossary if you have trouble with terminology.
What is RevShare?
Traditionally, we start with the main thing – terminology. It alone answers many questions.
RevShare is an abbreviation for Revenue Share, which translates to “profit distribution.” Thus, RevShare is a monetization model in which profit is distributed among the involved parties. In our case – between the advertiser and the affiliate marketer.
As with CPA, RevShare has its target action: in casinos and sportsbooks, it is the player’s loss(!), in dating, it is the purchase of statuses and various gifts, and so forth. It can be identical to those in other monetization models. The main difference will be the price: if in the aforementioned CPA it is generally fixed, then in RevShare, the commission is a percentage of the profit.
How is RevShare Calculated?
To better understand how RevShare works, we need to figure out what that profit is that we will be distributing from the ads.
Obviously, if the advertiser is a store selling a particular garment, its net profit from a unit of goods will not equal the cost of that good. The profit will actually be the markup.
RevShare works similarly in any vertical. Especially in gambling, where it is most often encountered. How is the calculation done in this industry?
Suppose you brought someone who deposited $10 in a casino and lost it. If under RevShare you are to receive 50% of the casino’s profit, your reward will not equal $5. Because from the loss amount, the costs of maintaining the casino, commissions, and others will be deducted beforehand.
In the case where you brought someone who made a deposit and won, the casino incurs losses. Accordingly, you will not receive a profit.
Moreover, in some cases, there are conditions under which your balance will go negative if you bring in people who win. You won’t have to pay off the debt, but if your profit cannot offset the negative within a month, you will not receive any payment. But the next month your negative will be annulled (if provided by the affiliate terms), and you will have the opportunity to start over with a clean slate.
When is it Better to Work on RevShare?
When choosing a monetization model, it is important not only to consider potential profit but also the conditions under which you can earn that profit.
The most important thing here is the source of traffic. It is important to understand that consistent profit from RevShare can only be brought by leads who become regular customers of the advertiser. If we talk about iGaming, then gambling plays a major role, which is more or less predictable and can be relied upon. For example, a person loses money and keeps pouring in until they win it back. The more they lose – the more and more often they make deposits to recover their money.
If we consider other niches, specifically – Dating, where RevShare is also encountered, then in this case attention should be paid to the quality of the advertised project and whether it meets all your traffic’s needs.
The best sources of traffic can be considered:
- Own websites from which you will drain traffic. Thematic sites with reviews of casinos or sportsbooks, combined with bonuses for traffic for registration and deposits – this is a good opportunity to gather a circle of regular players to ensure a stable profit;
- Messengers. Thematic pages with predictions on sports events and affiliate links to sportsbooks – this is still a working connection that can be used;
- Purchasing advertising on thematic resources. Optimal variant for any vertical, but requires more financial expenditure.
It is also worth choosing the right GEO. Because while in some countries people are ready to spend extra money on casinos, in others they may be banned altogether. Therefore, this issue needs to be well worked out before starting a campaign.
Advantages and Disadvantages of RevShare
Let’s talk about the main thing: what are the advantages of working specifically on RevShare, rather than the more popular CPA?
Let’s note that the choice of payment model depends directly on many factors and the specific case. Obviously, if you have a loyal audience that you can retain on the advertiser’s domain, then RevShare can provide you with more stable profit. Because you will receive profit as long as the lead uses the ad’s services. And this is the main advantage.
Also, unlike CPA, you generally do not need to pour large advertising budgets to attract a large number of new leads. Because if you have managed to gather a core of regular players at the same casino or sportsbook, then you already have a source of constant, almost passive income. And from there, everything will depend on the quality of the leads: their activity, the amount of deposits, etc.
If we talk about disadvantages, they are certainly present. In particular – the inability to forecast profit.
Moreover, if in CPA we can count on an impulsive effect when a person sees an ad, their eyes light up, and they instantly buy, then for RevShare to bring us stable profit, the lead’s interest in the ad’s services is necessary so that traffic continuously returns and pays. Accordingly, success depends on the quality of the product you are working with, so it is worth paying special attention to the offer chosen for work.
That’s why we see profit from RevShare not immediately, but only later. It is almost impossible to make quick money with RevShare.
Conclusion
RevShare is an extremely popular monetization model that can provide you with stable and eventually passive income. Initially, you will have to make a significant effort to obtain the number of leads that will provide you with a large check. However, eventually, all your expenses should pay off.
We also managed to mention the disadvantages. If you are looking for quick profits, then RevShare is not what you need.
If you are looking for working connections with RevShare, then drop into our Telegram community. There, experienced affiliate have gathered who can help you take the first steps in the niche if you have not yet dared to start your first campaign.
With respect, Your Geek!
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