Gross Revenue vs Net Revenue

[theshortstack]

I've noticed a few programs are now offering payment on Gross Revenue. Can someone just point out the advantages and disadvantages of this kind of system and which one you generally prefer?

Thanks a lot in advance!

[SlotsAff]

Well Gross Revenue deducts no bonuses, costs (such as marketing, processing costs, licensing etc) but %s are much lower.

Net Revenue is a higher % typically but deduct all the above.

You need to find out what costs are deducted in the net revenue commission formula to compare like for like

[jack-SA]

Let me briefly follow up on slotsaff on items most often deducted by affiliate programs that matter the most: player withdrawals.

In short, compared to net rev. share, under gross rev. share you typically earn less, though being sort of 'insured' against withdrawals and chargebacks potentially made by your players, so your revenue can only grow.

Example:
gross r.s. ... a $100 deposit earns you say 20% of $100, by the time deposit hits player's account, i.e. $20
net r.s. ... a $100 deposit (along with $40 withdrawal, 15% fees and no chargebacks) earns you ~40% of $100, i.e. $18

But this can easily change with the amount of withdrawal being either $0, or $xxx -- you get the idea...

[Louis - Income Access]

I could see % on gross being a little more satisfying to affiliates because you likely get a clearer picture of what is going into the calc. On the other hand, I would expect your overall revenue potential to be lower because at the end of the day, margins for the operator are the same. If they pay you on gross, they are going to pay a % based on the assumption of certain costs that may or may not apply. When they pay you on net, they only deduct these costs when they actually apply, if that makes sense.

[alex_sanches]

I use only net. revenue commission plan, it has more risk to lost some money than gross revenue, but still you will earn more, at least in my experience.

[Gabriel_LCP]

All of our affiliates are paid from their Net Revenues.

[the_soc]

Well Gross Revenue deducts no bonuses, costs (such as marketing, processing costs, licensing etc) but %s are much lower.

Net Revenue is a higher % typically but deduct all the above.

You need to find out what costs are deducted in the net revenue commission formula to compare like for like

what's unfair these days is that most bonuses are sticky (non withdrawable) - so their real cost, while not a flat $0 is pretty close to it since players can only withdraw what they win from the bonus... and if the casino's retention work is good, they'll keep the winner playing so he eventually loses back the money anyway...