Choosing the right commission model is one of the most strategic decisions an affiliate can make. Whether you're running ad campaigns, building SEO funnels, or generating influencer traffic, your earning structure must align with your goals, traffic quality, and risk tolerance.
In this post, we break down the three most common affiliate models and explain when, why, and how each of them delivers value.
What Is CPA?
CPA stands for cost per action, a cooperation model where the advertiser pays a fixed fee each time a visitor completes a specific action.
In this model, the affiliate/partner aims to attract new players to the platform, receiving a fixed fee for each new player. This amount is agreed upon with the affiliate manager and may vary based on the audience and reach of the traffic manager.
Keep in mind that with CPA, payment is only made if the agreed-upon goal is met, based on the conditions set with the affiliate manager, as payments vary according to the achieved results.
What Is Revenue Share (RevShare)?
Revenue Share (RevShare) is a model where affiliates earn a percentage of the revenue generated by players who joined via their link – typically, 50% goes to the affiliate, and 50% to the company. As long as the player remains active, the affiliate continues to receive a share of the profits they generate.
In RevShare, there are two types of cooperation models: NGR and GGR.
- NGR: The company shares operational costs, fees, and charges with the affiliate, resulting in lower profits for the partner.
- GGR: In this model, which 1win Partners uses, no fees are shared with the partner, allowing affiliates to earn a higher profit without worrying about operational costs.
Hybrid Model
The hybrid model combines CPA and RevShare, providing a more flexible and balanced approach. Affiliates receive both a fixed payment per player and a share of the company’s revenue.
Hybrid models are popular because they offer the advantages of both CPA and RevShare. However, this model requires careful monitoring, as the performance metrics may vary.
Which Is the Best Cooperation Model?
Let’s discuss the differences between the models presented:
- For those looking for immediate returns, CPA is recommended, as it provides control and predictability, allowing for an estimation of performance and the number of players attracted in a short timeframe.
- For those interested in a steady, long-term income, RevShare is ideal, as earnings can continue even if promotions don’t, depending on the players you initially attracted.
- The hybrid model offers the best of both worlds, combining the benefits of each. However, it is more complex and requires close monitoring of goals and performance metrics.
Need help selecting the optimal model for your traffic?
1win Partners offers full support: our affiliate managers will assess your traffic sources and advise on the most profitable strategy.
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