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Revenue Rules of Thumb

Written by Rich B
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Choosing between CPA and Revenue Share for the sites you decide to promote is a very important decision.
Choosing between CPA and Revenue Share for the sites you decide to promote is a very important decision. It's the classic dilemma of "the money or the bag" - do you take the sure thing now or no guarantees and the possibility of more money in the long run.

The first and most important thing to consider is is your own needs. If you're happy waiting, and gambling a little, then revenue sharing is for you. If you need guaranteed income, or you want to profit as soon as possible, choose per signup. For many people, it's as simple as that - you can make more money with revenue sharing, but it's slower to get going and you may also have a dry month.

The second thing to consider is how good the site is likely to be at retaining players. The longer you think people will stick with that site, the more attractive revenue sharing becomes. If I could give a definitive formula for player retention, I'd have retired by now because every site is looking for those answers. Some criteria I use are as follows:

  • How big is the site? Industry leaders are usually better at retaining players (this is especially true for poker sites, and less true for casinos). Thats kind of how they became industry leaders.
  • How is the customer service? The number one factor in players changing sites is poor customer service, while good service keeps people around even if the site is lacking in software or bonuses.
  • How is the software? Sites with good software are more fun to play at. While serious poker players and sports bettors will put up with bad software, anyone who is playing for fun prefers enjoyable software.
  • How often do they offer bonuses? More bonuses keep players coming back. However, they can also reduce the MGR for your players. If the bonuses clear fairly slowly it is better for the affiliate. In general though, regular bonuses keep a player loyal.

The third thing to consider is how lucrative each payment option is. The higher the CPA compared to the MGR payment (after the site deducts bonuses, fees, etc), the better. I do this by dividing the CPA payment by the revenue share. This lets me know how much revenue the players will have to produce for sharing to become a better deal. The higher this number (especially in relation to the first deposit), the better the CPA deal is.

My final, and most accurate rule of thumb is - when in doubt, go with revenue share. We have other articles that offer tips to get the most money out of your affiliate managers or what to look for in affiliate terms and conditions.

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