Payment Models in iGaming Affiliate Marketing
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A payment model is the rule that decides when an iGaming operator owes you money and how much: a fixed price per referred player, a share of what those players generate, or a mix of the two.
The choice matters because the same traffic pays out differently under each rule. A model that fits players who deposit once and leave will underpay on traffic that stays for months, and the other way round.
RevShare, CPA, FTD and hybrid deals cover most of what iGaming programs put on the table. CPL and CPI turn up at the edges of the vertical, usually on lead-gen and app offers.
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Let’s start with the Revenue Share model. In this arrangement, you, as the affiliate, earn a percentage of the net revenue generated by the users you refer to the iGaming operator.
RevShare keeps paying after the campaign that brought the player is over: as long as referred players stay active and keep generating revenue for the operator, the commission on that revenue keeps coming. The payout tracks player activity month to month, so it moves with the cohort and thins out as the cohort ages.
However, there’s a flip side to this model. Your earnings are directly tied to the user’s activity. If they’re not playing or winning, your commissions will be lower. Additionally, some RevShare deals include negative carryover, meaning if a user has a particularly lucky streak and wins big, your earnings could be impacted in the following month.
Whether a deal carries that clause is set by the program, not by the model, so the payment section of the terms is worth reading before signing: what to check is covered in our guide to iGaming affiliate programs.
So, when is RevShare the right choice? It’s ideal for affiliates who:
- Focus on building long-term relationships with users
- Promote high-value users who are likely to generate significant revenue over time
- Are comfortable with some level of risk and fluctuation in earnings
RevShare rewards traffic that stays, and it is the model where the quality of the source shows up in the numbers months later.
Cost Per Acquisition (CPA)
Now, let’s explore the Cost Per Acquisition (CPA) model, where you, the affiliate, receive a fixed payment for every qualified action taken by a user. These actions could include:
- Registration: A user creates a new account on the iGaming platform through your affiliate link.
- Deposit: A user makes their first deposit on the platform.
- First Wager: A user places their first wager on a game or sport.
CPA is the simplest model to plan around. You know exactly how much you’ll earn for each successful referral, making it easy to calculate your potential earnings and track your progress. There’s no waiting for users to generate revenue over time – you get paid upfront for your efforts.
What that fixed price is, and what has to happen before an action counts, is set per program and per GEO, so the comparison worth making is between programs: see how to choose an iGaming affiliate network.
However, CPA also has its drawbacks. Compared to RevShare, the potential for long-term earnings is limited, as you only receive a one-time payment for each action. Qualification criteria are also stricter: the action has to be verified on the operator’s side before it counts, and part of the traffic that looks converted in your tracker will not clear that check.
So, when is CPA the right choice? It’s a great option for affiliates who:
- Prefer immediate payouts and predictable earnings
- Are confident in their ability to drive high-quality traffic and conversions
- Promote offers with high conversion rates and low user churn
CPA suits traffic that converts fast and campaigns that need to close their own budget cycle.
First-Time Deposit (FTD)
The First-Time Deposit (FTD) model is a variation of CPA that focuses specifically on incentivizing new users to make their first deposit on the iGaming platform. In this model, you, as the affiliate, earn a commission based on the amount of the user’s initial deposit.
The main advantage of FTD is its clear focus on acquiring new depositing users. It encourages you to target your marketing efforts toward attracting users who are not only interested in signing up but also ready to commit financially to the platform. This can be particularly beneficial for iGaming operators who are looking to grow their active user base.
However, FTD also has its limitations. The commission rates are typically lower than RevShare, and your earnings are solely dependent on the initial deposit amount, regardless of the user’s future activity on the platform.
So, when is FTD the right choice? It’s well-suited for affiliates who:
- Prioritize acquiring new depositing users
- Have effective strategies for targeting and converting high-value users
- Are comfortable with a focus on short-term gains over long-term revenue potential
FTD fits campaigns built around getting the first deposit done, where whatever the player does afterward sits outside the deal.
If you’re looking for a payment model that combines the benefits of both RevShare and CPA, hybrid models might be your ideal solution. These models typically offer a blend of upfront CPA payments for specific actions (e.g., registration, deposit) and a recurring RevShare commission based on the user’s ongoing activity.
The main advantage of hybrid models is their flexibility and potential for higher overall earnings. You receive immediate payouts for initial actions, providing a sense of security and predictable income. At the same time, you also benefit from the long-term revenue potential of RevShare, as you continue to earn a percentage of the user’s net revenue.
However, hybrid models can be more complex to understand and manage compared to single payment models. The commission structures and qualification criteria can vary significantly, requiring careful analysis and negotiation with the iGaming operator.
So, when are hybrid models the right choice? They’re a good fit for affiliates who:
- Have experience in iGaming affiliate marketing and are comfortable with more complex arrangements.
- Are trying to strike a balance between upfront payments and long-term earnings potential.
- Are willing to negotiate and customize their commission structures based on their specific goals and risk tolerance.
Hybrid deals are worth asking about once a program already knows your traffic; they get negotiated case by case and do not sit on public rate cards.
Other Payment Models in iGaming Affiliate Marketing
While RevShare, CPA, FTD, and Hybrid models dominate the iGaming affiliate marketing landscape, there are a few other payment models worth mentioning:
- Cost Per Lead (CPL): In this model, you earn a commission for each qualified lead you generate, typically defined as a user who completes a specific action, such as filling out a registration form or signing up for a newsletter. CPL can be useful for iGaming operators who want to build their email lists or gather user data for future marketing efforts.
- Cost Per Install (CPI): This model is commonly used for mobile app promotions. You earn a commission for each user who installs the iGaming app through your affiliate link. CPI is effective for driving app downloads and expanding the operator’s user base.
FAQ
What is the difference between CPA and RevShare in iGaming affiliate marketing?
CPA pays a fixed amount for each referred player who completes a qualifying action, usually a first deposit. RevShare pays a percentage of the net revenue those players generate, for as long as they keep playing. CPA settles inside the campaign cycle and ends there. RevShare pays out over months and depends on what the players do after they sign up.
What is an FTD in iGaming affiliate marketing?
FTD stands for first-time deposit: the first money a referred player puts into their account. Most CPA deals in this vertical use it as the qualifying action, and it also works as a payment model of its own, where the commission is tied to the size of that first deposit.
What is a hybrid payment model?
A hybrid deal combines a reduced CPA payment for the qualifying action with a reduced RevShare percentage on the player’s later activity. Both components are negotiated together, which is why hybrids tend to appear once a program has already seen your traffic.
Which payment model pays more, CPA or RevShare?
Neither model pays more by default. CPA comes out ahead when referred players deposit once and stop. RevShare comes out ahead when they stay active long enough for the revenue share to pass the fixed price. Which one wins on the same traffic depends on the offer, the GEO, and the terms of the specific program. Our guide to iGaming affiliate programs covers what to look at when comparing them.
What is negative carryover in a RevShare deal?
Negative carryover is a clause in some RevShare agreements. If referred players win more than they lose in a given month, that negative balance rolls into the next payment period instead of resetting to zero. The clause is standard, and it sits in the payment section of the program terms.
Conclusion
It doesn’t matter whether you prefer RevShare’s long-term potential, CPA’s upfront rewards, FTD’s focus on new users, hybrid models’ flexibility, or CPL or CPI’s niche opportunities; there’s a payment model out there that aligns with your goals and risk appetite.
Remember, the key is to carefully consider your strengths, target audience, and desired outcomes when choosing a payment model. Once the model is clear, the next decision is the program behind it: which networks and operator programs run which deals, and what to check in the terms before signing, is covered in our guide to choosing an iGaming affiliate program.
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