What is 'Revenue Share'?
Revenue share is a term which applies to online casinos. If the owner of a website has a link that leads to an online casino on their site, they can potentially benefit from that link financially should that user sign up and make a deposit with the online casino
. Revenue share is one of the ways the link owner or casino affiliate can choose to get paid.
'Revenue Share' Explained
The link owner will usually have three choices in how they make their money. The first choice is CPA, which stands for 'cost per acquisition'. Under CPA a set amount is paid every time a player, who came via their link, places a deposit with an online casino. The next choice is CPL or 'cost per lead'. If a casino is offering payment on a CPL basis, it means that the link owner will receive a fee if a user registers with the casino; they don't necessarily have to make a deposit, but the financial reward for the website owner will be lower. Finally there's revenue share. If an affiliate
chooses to get paid this way, they will get paid depending on the performance of the player that signs up via their link. Although it relies on the player continually playing at the casino and making losses, by opting for revenue share, an affiliate owner can expect to earn money for as long as the player is gambling at that online casino.Revenue share will usually pay out a percentage of the player's losses, so the affiliate owner
has to weigh up the positives and the negatives of revenue share when compared with CPA and CPL. Unlike the other models, revenue share isn't a one-time payment. Assuming the casino is trustworthy, they will keep paying out as long as the player keeps making losses.What also has to be considered, however, is that the vast amount of players who sign up with an online casino are players that are going to place a handful of wagers but not much more. Experienced affiliate owners tend to prefer revenue share over the other two options because if they manage to 'capture a whale' (a heavy online gambler), they could potentially earn lots of money over a number of years.One potential threat to revenue share is what is called a negative carryover clause. It's worth checking with the casinos in question as to whether they run this clause as it could have a detrimental effect on any earnings gained with revenue share. It comes into effect if a winning player signs up via the affiliate's link. If they win heavily, the clause will state that the player's profits can come out of any potential profits
of the affiliate. It means that all it takes is one player to win big and, all of a sudden, the revenue share that has been earned over a long period could disappear.