Affiliate programs offer to merge traffic to offers with different payment models — for a target action, a confirmed order, an active player, and so on. In the article we will talk about one of the most ambiguous models — about RevShare. Let’s explain what it is, what programs work with it and what is more profitable.
What is RevShare (Revenue Share)?
RevShare is a payment model in which you do not receive a fixed amount for the attracted lead, but a percentage of the company’s income during the entire time of working with it. Most often, RevShare is used in the verticals of gambling and betting, in other words, online casinos and bookmakers. The advertiser will pay you, for example, 40% of the profit from the client all the time while he makes bets.
In the future, RevShare seems to be more profitable: you just need to attract leads once and make a profit from them all your life. In fact, everything is a little more complicated, we will tell you about this later.
Let’s give an example. You have connected to an online casino offer that pays 50% according to the RevShare model. We brought a client who first made a deposit of 1,000 USD and lost it. After deducting the maintenance costs, the casino received a net profit of 800 rubles, and you received half of this amount, that is, 400 USD. Then the client made another deposit of 2,000 USD, started betting, won a couple of times and withdrew 500 USD. It turns out that the casino has 1,500 USD left, it spent 200 USD on maintenance. The net profit of the casino is 1,300 USD, you get 650 USD.
It is important to understand that RevShare is not payments for deposits, but payments that depend on the net profit of the advertiser himself. That is, if the person attracted by you will constantly win, and the casino will lose money on it, you will also get nothing.
If you plan to work on RevShare, it is important to take into account one more feature. You need to attract not people who will make a couple of deposits and safely forget about registration, but those who will constantly bring money. That is, either very gambling people, or those who are engaged in betting at an almost professional level. Accordingly, you need to correctly select traffic sources. For example, the following sources are suitable for RevShare:
- Own information sites that promote to the top for certain queries;
- Telegram channels that publish forecasts and long-term schemes for earning money at casinos;
- Advertising on relevant forums and in communities where people who are professionally engaged in betting communicate.
At the same time, there are some nuances in working with each of these traffic sources. For example, it is important to attract not everyone to Telegram channels, but a loyal and understanding audience. And on the forums, work with bookmakers and casinos with a normal reputation.
Which is more profitable — RevShare or Fixed price?
Every arbitrageur who has ever seen the RevShare payment model, involuntarily thought about what is more profitable — a fixed payment or a percentage of the advertiser’s profit. Let’s figure it out.
At first glance, RevShare seems to be more profitable, because you get not one payout, but several. Offers with a fixed amount of payment for a target action have their own characteristics:
- You can predict revenue if you know the approximate conversion rate and how much traffic you are ready to give;
- To receive money constantly, you need to buy traffic all the time: stop advertising — there will be no money;
- There are refusals to pay for low-quality traffic.
Experienced arbitrageurs advise you to start with a fixed payment for the target action. And then go to RevShare.
In theory, if you use the RevShare model, you can work once, and then constantly make a profit. This model also has its own features:
- The profit does not appear immediately, but gradually, after a month, two or even six months;
- At first, you can go into the negative, especially if you buy traffic, and do not get it from the search;
- The profit continues to go, even if you stop the traffic;
- the amount of profit is unpredictable, and you can not influence it in any way.
At the same time, it is important to understand that not all the people you attract will constantly pour in large sums. Most of them will make 2-3 deposits and leave after a series of losses. Some will spend 1000-2000 rubles a month, treating a casino or a bookmaker as entertainment. And only about 1% of all will constantly replenish the account. That is, in order to earn more on RevShare than with fixed payouts, you need to either generate a lot of cheap traffic, or try to attract those who will play in the casino or place bets for a very long time.
What to choose is up to you. Most often, it is a fixed payment that is more profitable. They rarely work on RevShare, because it is a deferred profit that can neither be predicted nor controlled.
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