What is RevShare: Features and Revenue Share Payment Model
Revenue Share is an affiliate program model, were the participants gets a part of the income they offer up to the customer. For example, by attracting new players to online casinos partners gets a percentage from their losses.
How revenue sharing model work
Revenue share gambling affiliate program has many varieties, but, every operation includes dividing an operating profits or losses between financial entities. Sometimes, revshare payment model applies as a progression program — for example, a small business owner can pays partners or employees some percentage to attract new customers. Also, revenue sharing can be applied to distribute the profits generated by the business union.
Features of RevShare
It is very difficult to earn in revenue share without initial capital, and in 90% it is simply impossible. The first income from such type can be expected for weeks and months, so it’s so important to have a financial cushion. In comparison with Cost per Action from gambling software, the arbitrage specialist immediately receives payments and can use them to attract a new volume of traffic.
How to calculate profit in RevShare
Revenue Sharing has the main scheme: RevShare = NetRevenue * percentage of compensation.
NetRevenue is the gross earning that the casino gets from the player attracted by the partner. It may take both positive and negative values (ie, loss – players’ winnings).
These are various administrative deductions. This item includes the costs of transactions, provider and administrator fees. In general, overhead costs in online business are no less than offline. Accordingly, the casino usually prefers to divide net proceeds with partners. All such costs are specified in the documentation.
Dynamic Revshare is a variable rate of deductions. Suitable to partners with a high volume of traffic. The reward is calculated like this: for the first 15 deposits per day, 25% of the casino’s profit is paid, for deposits from the 16th to the 99th — 45%, for the hundredth deposit and then — 60% revshare.
The plan recordkeeper doesn’t receive any distribution fees from the zero–return mutual fund classes. Sometimes this will indicate lower cost ratios of mutual funds. It also implies that there will be a separate fee to keeping records and it become easier to negotiated and monitored it.
Benefits of applying the RevShare payment model
Due to get all the best out of collaboration on the revenue share offer:
- assess strengths, weaknesses, and willingness to work on an affiliate model;
- formulate for yourself and to a potential partner main competencies: marketing, sales, production etc;
- see who can give the needed expertise, and write to these companies;
- be sure to discuss all the conditions on the shore: profit sharing, areas of responsibility etc;
- make a clear agreement that will regulate all stages of the relationship between both parties!
Who benefits from working with RevShare
If the writer proves that he wants his articles to be paid according to the quantity of times his work is read so he is being paid through revenue–sharing. In case of large quantity of article reviews the writer can gets much bigger reward than if he had been paid a set fee.
The owners of shareholding companies utilize the certain form of revenue share. While receiving earnings the value of corporation shares rises and the financial benefit is distributed among shareholders.
Successful managers who plan to share profits with employees also sometimes take part in the distribution of profits, which, depending on the company’s income, gives bonuses.
Individuals, who head companies together enter into partnerships in which the company’s proceeds is divided between them.
How to make money with RevShare
When it comes to casino affiliate programs, it’s worth noting that there are many different types of income models. For example —commission per click, commission for purchase.
User of a pay-per-click scheme gets a set amount of money for each successful click or visit to an affiliate site.
Acquisition Cost Scheme requires the affiliate to work harder to achieve more tangible action on the part of the referral.
By cooperating with an income distribution website, every purchase made by a referral will generate income.