What is Revshare Explained in Simple Words

When pouring traffic to gambling, many arbitrageurs, especially newbies, are skeptical of Revshare. Because of this, they often choose the CPA payment model. At the same time, in many cases you can still see the words “I worked with Revshare” – a paradox, isn’t it?

So which is better – RevShare or CPA? How is it that no matter whom you ask, everyone is working with CPA, and all the cases are full of RevShare? Below we will try to answer these questions in detail.

What is RevShare

RevShare (from Revenue Share) – a payment model, in which the arbitrator receives income from the profits of the advertiser (in our case, online casinos). That is, you poured traffic, users began to play and lose money, and you get a certain percentage of the amount they lost in the casino. It is important to consider the following nuances when working on the revshare:

• Traffic pays off in the long run, up to a year.
• If your lead wins the online casino, it can affect the amount of your income.
• Revshare income can be temporary. For example, after six months, you may stop getting paid for the attracted lead.

This is the reason why newcomers are afraid to work with the re-investment, choosing CPA.

What is the CPA model?

CPA (Cost Per Action) is a payment model, in which the arbitrator receives payment from the advertiser for performing the desired action by the user involved. Usually in gambling it’s about:

• Registering at a casino.
• Making the first deposit.
• Making a N-th deposit.

The possibility of getting “fast money here and now” is the main reason why newcomers choose the CPA model. And in general, there is a logic in it, because without proper experience, working on Revshare, you can simply drain the budget and stay without any money.

Why just CPA and RevShare – there are other models too?

The gambling partnerships have another popular payment model – CPL (pay per lead). In gambling, the payment is made for the registration at the online casino. If you are interested in this subject, read more about CPL-model and also have a look at existing casino affiliate networks and their payment models.

The fact that gambling affiliate providers are only paid by such models is due to the specifics of gambling itself, namely:

• Online casinos cannot clearly predict income – how much money a gambling project will earn depends directly on how many visitors the arbitrator will attract and how these users will behave next. That is why, when budgeting for an influx of external traffic, the advertiser prefers a fixed payment for the mere fact of receiving traffic, or a percentage payment from the income.
• It is not profitable for online casinos to pay for the installation of applications – yes, from time to time “fresh” gambling projects create offers with a PPI payment model (payment for the number of installations), but it is rather an exception to the rule, the relevance of which is lost immediately after the gambling application “grows” a sufficient number of downloads.
• The payment model should suit everyone – online casinos need arbitrageurs no less than arbitrageurs need the advertiser’s product. Unlike commodities or nutra, in gambling vertical it is difficult to implement a check whether uproar corresponds to reality, so of all existing payment models, CPA and RevShare are the most popular in gambling.

CPA vs RevShare – pros and cons

In the case of the CPA model, it’s important to understand that payment will be made immediately after the attracted user performs the targeted action – and that’s it. Literally everything – at all. That is, even if such a user will pour millions into the casino, you won’t get a cent from it.

Simply put, the CPA model has the following advantages:

• You don’t have to wait for the results of the lead’s game – whether the player wins or loses doesn’t matter.
• It allows you to quickly replenish the money invested in the plum – especially important for beginners, whose budgets do not allow for a long time to remain without profit.
• The audience practically does not matter – almost everyone has tried “to try their luck” at least once in their life. If a user clicks on a link at all, he is more likely to “try it once”, and you don’t need more than that with the CPA model.

And the next disadvantages:

• Complete dependence on the drain of traffic – when you stop the advertising campaign, there will be no income.
• Long hold because of the check for fraud – as long as the PP with ads all check and agree, it can take quite a long time. Usually about two weeks.
• No profit in the long run – the income is “here and now”. That’s it.

In the case of the RevShare model, the situation is quite the opposite. Here it is necessary to consider that it is possible to sit without profit for a long time, or to receive so small profit that it will not even cover the cost of advertising. However, in the long run, it pays for itself, as you will receive your percentage all the time.

In other words, the RevShare model has the following advantages:

• Stable passive income in the long run – you’ll earn your percentage as long as the advertiser’s platform is “alive.”
• The sources of traffic are practically irrelevant – as long as the attracted users play.
• The expediency of using targeting – by attracting addicted gamers, you can get even more profits.

And the following disadvantages:

• Before the plum will pay for itself, it may take a long time – players “catch the excitement” not immediately. As a rule, they gradually “build up an appetite,” pouring in more and more money with each win. However, this is a long process.
• Each player’s win is a loss of profit for the arbitrator – if the casino does not earn anything (and it does not earn if it wins), then there will be nothing to pay interest from.
• It happens, that the attracted user did not lose, but won, and the arbitrator gets his earnings cut off for that. It is important to ask your personal manager whether the negative balance is zeroed out, or the web has to cover the expenses of the advertiser from his earnings.

When is the RevShare model relevant?

Considering the above, it is easy to understand that the RevShare-model is not the best idea to drive traffic to gambling without proper experience and a “safety cushion” in the form of a decent advertising budget. For this reason, RevShare will suit those who:

• Have already mastered the subject, having worked long enough on the CPA model and want to develop further.
• Have their own sources of traffic, the costs of which are not tied to traffic.
• They are future oriented and are not looking for fast payback.

This is the reason why RevShare often appears in cases – newbies rarely have exclusive experience to share with someone, while gurus tend to choose RevShare.

When is the CPA model relevant?

Despite the obvious benefits of RevShare, the CPA model also has a right to exist. After all, there is a reason why many arbitrators choose CPA. This model is perfect for those who:

• Are only beginning to get acquainted with the gambling vertical and do not want to take risks.
• Prefer to see the result of their work “here and now”.
• Do not have the ability to stay for a long time without profit and need a turnover.
• Poorly understand the psychology of the target audience and do not know how to identify and attract a loser.

So which is better – CPA or RevShare?

There is no and cannot be a definite answer to this question – because the question itself, in spite of the fact that it is asked by many arbitrageurs, is fundamentally incorrect. These are two fundamentally different approaches to the form of cooperation, and both have their advantages and disadvantages, depending on the situation and the professional qualities of the arbitrator himself.

And even though the RevShare choice is potentially more profitable than the CPA choice, in reality, the arbitrator is not always able to take advantage of it.

In addition, there is another reason why CPA is considered a “less profitable” option – the lack of good cases. Anyway, the cases with RevShare are much more common, and to objectively compare the two models, this nuance should also be taken into account. However, if you read the gambling cases you can say that CPA is chosen not only by beginners.

To sum it up

We hope that we’ve helped you to understand the eternal argument about which payment model is better to get traffic for gambling: “CPA or RevShare”.

Proceed from the situation that’s relevant to you, don’t follow patterns and weigh your decisions – get the most out of your gambling traffic. Good Profit!