RevShare Demystified: A Comprehensive Guide to iGaming Affiliate Profit Sharing
As an affiliate marketer in the iGaming industry, you understand the important role you play in driving traffic and generating revenue for online casinos and sportsbooks. Your efforts in promoting these brands are rewarded through various commission models, each offering unique opportunities and potential earnings.
One of the most enticing commission models for affiliates is the profit sharing or RevShare arrangement. This model stands out as it offers the potential for substantial earnings based on the success of the iGaming brand you promote. The more successful the brand is in retaining and monetizing players, the higher your potential earnings can be.
In this comprehensive guide, we’ll delve into the intricacies of the revenue share vs profit share model. We will explore their meanings, workings, and potential benefits for affiliates and iGaming operators.
By understanding the nuances of this commission structure, you’ll be better equipped to maximize your earnings and forge a rewarding partnership with the operators you promote. As we begin with what the revenue share model is and explain profit sharing meaning, we strongly recommend that you take note of the distinctions.
What is RevShare?
In iGaming, RevShare is short for Revenue Share or revenue sharing. It is an earnings model that is totally performance-based. Put differently, this model refers to an arrangement that allows affiliates to earn a percentage of the total revenue generated by the players they refer to an iGaming brand. The percentage earned by the affiliate is determined by the terms of the agreement they have with the iGaming brand.
What is Profit Sharing?
How does profit share work? Within the online gambling industry, profit sharing, which can also be called ProfitShare, is a business model in which affiliates are given a percentage of the profits generated by the iGaming operators that they promote. It is sometimes perceived as a bonus. This model goes beyond the traditional revenue share or pay-per-acquisition (PPA) models, where affiliates are compensated based on the number of new players they refer to or a percentage of the initial deposits made by those players.
With a profit-sharing business model, affiliates have a vested interest in the long-term success of the iGaming brands they promote, as their earnings are directly tied to the operator’s overall profitability. The more successful the brand is in retaining and monetizing players, the higher the potential earnings for their affiliates.
Revenue Share vs Profit Share: Understanding the Difference
While profit sharing and revenue sharing are often used interchangeably, there is a subtle yet crucial difference between the two models. As earlier defined, revenue sharing, or RevShare, is based on a percentage of the iGaming operator’s revenue generated by the referred players. This means that affiliates receive a cut of the player’s deposits or the operator’s gross gaming revenue (GGR) from those players.
On the other hand, the profit sharing model is calculated based on the iGaming operator’s net profits after deducting operational costs, taxes, and other expenses. This means that the affiliates share in the operator’s actual profits, which can be a more significant portion of the revenue generated, but may also be subject to fluctuations based on the operator’s overall performance and profitability.
Profit Share Affiliate Programs
Generally, Profit Share Affiliate Programs refer to iGaming affiliate arrangements that are based on the ProfitShare model. These programs incentivize affiliates to refer high-quality players to the iGaming brand, as it directly impacts their earnings. As an affiliate, it is important to research and compare different Profit Share affiliate programs to find the best fit for your audience and niche.
Deferred Profit Sharing Plan Meaning
Another associated term to understand as we demystify the RevShare model and differentiate it from ProfitShare is the “Deferred Profit Sharing” plan. This is a type of profit-sharing model where the employer defers a portion of the company’s profits to a future date. This plan is often used to incentivize affiliates to stay with the company and contribute to its growth and success.
Which Model is Better: Profit Share or Revenue Share?
Determining which model is better between revenue sharing and profit sharing depends on the specific context and goals of the affiliates and iGaming operators involved. Here are some factors to consider:
Incentivization: Offering the RevShare model incentivizes affiliates to promote the iGaming platform more effectively by tying their earnings to the revenue generated. This alignment of interests motivates affiliates to drive traffic and conversions, leading to increased promotional efforts and potentially higher revenue for the business. Alternatively, the Profit Share model provides affiliates with a predetermined percentage of the net profits, benefiting those with a strong track record of driving high-quality traffic and converting leads. This arrangement fosters a sense of partnership and collaboration, encouraging affiliates to go above and beyond in their promotional efforts.
Stability: Revenue sharing tends to provide a more stable income stream for affiliates since it is based on a percentage of revenue generated by referred players. Profit sharing, on the other hand, can be more volatile as it depends on the operator’s net profits, which can fluctuate based on various factors.
Risk Exposure: Revenue sharing places the risk primarily on the iGaming operator, as affiliates receive a percentage of the revenue regardless of whether the operator makes a profit or loss. In profit sharing, affiliates take on a greater risk as their earnings are directly tied to the operator’s net profits. If the operator incurs losses, makes more expenses than revenue as regards net profit determination, or faces financial difficulties, the affiliate’s earnings may be negatively impacted.
Transparency: Revenue sharing is often more transparent, as the affiliate can track the revenue generated by referred players and calculate their earnings accordingly. Profit sharing may involve more complex calculations, as it depends on the operator’s net profits after deducting various expenses.
Ultimately, the choice between revenue sharing and profit sharing depends on the risk appetite, income stability, and potential earnings desired by the affiliates and the overall performance and profitability of the iGaming operator. At this juncture, we hope you now understand why RevShare is so popular in the industry.
Optimizing Your Earnings with RevShare
To optimize your earnings with RevShare, it is important to choose the right iGaming brands to promote and to refer high-quality players to their platform. Conduct thorough research and compare various Profit Share affiliate programs to identify the ones that best align with your audience and niche. It is also advisable to use effective marketing strategies such as search engine optimization (SEO), content marketing, and social media marketing to attract and retain a steady stream of high-quality players.
How Does Revenue Sharing Work at P4P?
At P4P.Partners, we are proud to offer some of the best iGaming brands in the industry, enabling our affiliates to enjoy significant earnings via our diverse alternative commission models. For example, the mechanics of our revenue sharing model are designed to be transparent and rewarding for all our partners. When you join us, you are assigned a unique tracking link, which you can use to promote our online casino brands across various marketing channels, such as websites, social media, or email campaigns.
When a player clicks on your affiliate link and registers with our brand, say under our OneDun affiliate program, they are tracked and attributed to you. As the player engages with the platform and generates revenue through deposits and wagers, you earn 25% to 50% of the net gaming revenue generated by that player. This money will be calculated and allocated to your affiliate account within our network.
Note: Net Gaming Revenue (NGR) refers to the total revenue generated by an iGaming operator from players referred by an affiliate, minus any associated deductions and fees. NGR is a measure of an operator’s revenue directly attributed to the referred players.
Final Words
At P4P Partners, we are committed to providing our affiliates with a compelling revenue share model that presents a win-win scenario for all parties. Our model exemplifies the potential of revenue share arrangements in the iGaming industry. However, to truly excel with this model, we strongly advise you to adopt a strategic approach, focusing on player retention and engagement, content marketing, diversifying marketing channels, building a strong brand, as well as ensuring compliance with relevant regulations.
Ultimately, our revenue share model represents a mutually beneficial relationship built on shared success and business growth. By leveraging the power of net gaming revenue sharing through our network, you can unlock a world of opportunities and carve out a rewarding and lucrative career in the dynamic iGaming landscape. On our part, we are committed to continuing to provide you with the support, resources, and innovative models you need to thrive.
Contact us today if you have any questions or would like to learn more about how we can help your business grow. We look forward to hearing from you soon. Our affiliate managers will be happy to help you achieve your goals faster and better!
