Choosing the Right Commission Model - RS/ERS, CPA/Hybrid

Slotland Affiliates

SLA-Juan

Affiliate Program Representative
Joined
Mar 2, 2023
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Hello everyone

I hope the AGD community is having a great start of the new year!

Following my question regarding listing fees, and receiving a few private messages about the topic. I would like to bring to you all the 3 models we work with at Slotland Affiliates – Revshare, CPA and Hybrid. Further, I would like to learn more about your opinion of each deal to see what’s the preferred one amongst all of you.

1. Revshare (RS/ERS)
Perhaps the most common type of deal in the industry, and in my opinion, the favourite amongst the Affiliate Managers. As this translates into pure performance, where both parties share the generated income based on a predetermined percentage of each conversion.

Why to choose a revshare deal?
  • Incentivizes Performance: Revshare motivates both, Affiliates and Affiliate Manager to focus on quality and effective promotion, as their earnings directly correlate with the success of the sales or transactions they drive.
  • Long-Term Income Potential: you as an affiliate can benefit from sustained revenue as you continue to earn a percentage of ongoing conversions, creating a potential for a consistent income stream over time.
  • Aligns Interests: By linking affiliate earnings to overall revenue, the revshare model aligns the interests of you as an affiliate and the affiliate program, fostering a collaborative and mutually beneficial relationship.

I would like to mention the difference between Revshare and Effective Revshare. This is crucial you understand as an Affiliate since this directly affects your real earnings. Here is where it gets interesting, as I receive many affiliates claiming there are programs out there paying 50%+ Revshare. However, as everything that sounds too good this tends to not be real. To make it simple, Effective Revshare is the real revshare percentage value after deducting admin/transaction fees.

Always read the terms and conditions for revshare deals to make sure you are not getting trimmed with extra fees. Another way to check this, is by coming to Affiliate Guard Dog forum. (check here our Effective Revshare, which is one of the most competitive ones)

2. CPA (Cost Per Acquisition)
This model in the affiliate world involves affiliates earning a predetermined commission for each specified action their marketing efforts generate, such as a sale, lead, or other desired outcome.

Why to choose CPA?
  • Predictable Earnings: With a clear-cut payout structure, you can forecast your earnings more accurately, making budgeting and planning more straightforward.
  • Quick Wins: CPA models offer instant gratification. You receive a fixed payment for every successful conversion, providing immediate returns for your efforts.
  • Efficiency: CPA allows you, as affiliates, to scale your efforts efficiently. With a clear understanding of the commission structure for each action, you can optimize your marketing strategies to maximize returns. As you can fine-tune your campaigns based on performance data, you can scale your efforts to reach larger audiences and increase your overall earnings potential.

However, this model can have some negative impact on your overall earnings. Although it gives you instant earnings, it can also play against you. For example, there might be a high-roller coming through out of your tracking links that will start depositing $10,000 on a monthly basis. If you got a deal for a $150 CPA for conversion, you are unfortunately leaving a lot of money on the table… If you, as an affiliate,manage to refer a player on an effective 29.75% revshare deal and a player depositing $10,000 per month for a year, you would earn a total of $35,700 over the 12-month period. This is something to consider

3. Hybrid Deal
In this mode, you as an affiliate receive earnings through a combination of both Revshare and Cost Per Action (CPA) deals.
Why to choose CPA?
  • Diversified income stream: providing you with the benefits of long-term revenue from Revshare while also enjoying immediate compensation for specific actions achieved through the CPA component.
  • Increased Earning Potential: by combining Revshare and CPA, you can tap into multiple revenue streams simultaneously. This versatility enables you to capitalize on different aspects of your audience's behaviour, optimizing your overall performance and maximizing their financial gains in the competitive affiliate marketing landscape.
  • Risk Mitigation: the dual structure minimizes risks by providing a steady income through CPA and the potential for additional earnings through Revshare.

A hybrid deal model can offer significant advantages for both you, the affiliate and, me, the Affiliate Manager. It is clear that this approach allows for a diversified performance strategy, combining the stability of Revshare with the targeted outcomes of CPA. While the benefits of this hybrid model are apparent, it's essential to acknowledge that the dual structure also serves as a risk mitigation strategy. By reducing the amounts allocated to both Revshare and CPA, the affiliate program can effectively balance the scales, ensuring sustained profitability while navigating the inherent uncertainties of the market. This strategic adjustment not only safeguards the program against potential downturns but also fosters a more collaborative and mutually beneficial relationship between the Affiliate Manager and affiliates, creating a win-win scenario in the dynamic affiliate marketing landscape.

Now that we have dissected each commission model, it's time to hear from you.

What is your preferred way of working with brands?

Are you all about the patient growth of Revshare, the quick wins of CPA, or the balanced approach of a Hybrid deal?


For those ready to take the plunge, we're offering an exclusive opportunity. Join our affiliate program today and enjoy a generous 50% Revshare for the first 6 months. It's time to turn your affiliate journey into a success story!

 
Last edited:

AussieDave

24 years & still going!
Joined
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programs out there paying 50%+ Revshare. However, as everything that sounds too good this tends to not be real.

Join our affiliate program today and enjoy a generous 50% Revshare for the first 6 months.

Every operator has expenses. 100% GGR is the base. Ironically, it seems your 50% isn't real, either... just sayin!
 

SLA-Juan

Affiliate Program Representative
Joined
Mar 2, 2023
Messages
51
Reaction score
72
Hi @AussieDave,

That is a vital point that could've indeed been mentioned in my post. Thanks for your feedback!

Even though in reality it can be a zero-sum game (e.g. compare getting a 30% revshare deal from a program boasting a 100% effective revshare vs 45% rs deal from a program with 85% ERS such as ours).

Let me conclude that we have always clearly stated our admin fee, while the results of AGD audit are being featured next to each and every post I made here.

Once again, thanks for your feedback, AussieDave!
 
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Slotland Affiliates
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