CPA or revenue share when 5% of players leave each month
Affiliates
With 5% of players leaving each month, a 35% revenue share on 80 a month earns 396 over two years against a CPA of 200, overtaking it in month 9.
- 396revenue share over two years
- 560revenue share over a lifetime
- 20.0average months a player stays
Churn drives model selection
Monthly attrition dictates which payment structure benefits the affiliate. The table below shows cumulative earnings for both models. A fixed CPA provides immediate capital, while revenue share accrues value over the player's lifespan. With moderate churn, the revenue share overtakes the CPA in month nine. This crossover point reflects the balance between upfront cost and ongoing margin. Affiliates must weigh immediate cash flow against long-term accumulation when choosing a contract. Check the regulation tracker for relevant compliance updates.
| After | CPA | Revenue share, cumulative |
|---|---|---|
| Month 3 | 200 | 80 |
| Month 6 | 200 | 148 |
| Month 12 | 200 | 257 |
| Month 24 | 200 | 396 |
| Month 36 | 200 | 472 |
Understanding the crossover point
The crossover month marks when cumulative revenue share earnings exceed the fixed CPA amount. Before this point, the CPA offers higher immediate returns. After month nine, the revenue share becomes more lucrative. This shift occurs because the recurring percentage of net revenue accumulates steadily over time. The average player stays for twenty months, allowing the share to grow linearly. Short-term campaigns favor CPAs, while long-term partnerships benefit from revenue shares.
Contract terms alter outcomes
Specific contract clauses can shift the advantage between models. Negative carryover reduces the effective revenue share if players churn quickly. Admin fees deduct from the gross revenue before the share is calculated. These terms lower the net payout, potentially delaying the crossover month. Affiliates should scrutinize how fees and carryover rules apply to their traffic quality. High-quality traffic with lower churn may still favor revenue shares despite these deductions.
Questions
When does revenue share beat CPA?
Revenue share overtakes CPA after the crossover month. In this example, that occurs in month nine. Before then, CPA yields higher cumulative returns.
How does churn affect earnings?
Higher churn shortens the player lifespan, reducing total revenue share earnings. Lower churn extends the period over which the percentage accrues, increasing the final payout.
Do admin fees matter?
Yes. Admin fees reduce the net revenue base before the share is applied. This lowers the monthly payout and can delay the crossover point compared to a clean share.
Every figure on this page is computed by code from standard industry formulas and the facts of our regulation tracker, each checked a second way. See the methodology.