CPA or revenue share when 8% of players leave each month
Affiliates
With 8% of players leaving each month, a 35% revenue share on 80 a month earns 303 over two years against a CPA of 200, overtaking it in month 11.
- 303revenue share over two years
- 350revenue share over a lifetime
- 12.5average months a player stays
Understanding the crossover point
With the churn rate shown in the key figures, a revenue share surpasses a fixed CPA in the month indicated by the data. The table below shows cumulative earnings for both models over two years. Revenue share accrues monthly based on active player status, while CPA pays once upon conversion. At the average stay duration listed, the revenue share accumulates value exceeding the initial CPA payout. Affiliates must track this crossover to align payment models with expected player lifetimes.
| After | CPA | Revenue share, cumulative |
|---|---|---|
| Month 3 | 200 | 77 |
| Month 6 | 200 | 138 |
| Month 12 | 200 | 221 |
| Month 24 | 200 | 303 |
| Month 36 | 200 | 333 |
Impact of retention rates
Retention drives the final value of revenue share agreements. As the key figures show, lifetime earnings reach the total listed under this model. Higher retention extends the revenue stream, increasing the gap between revenue share and CPA. Lower churn means players stay longer, generating more net revenue per month. Affiliates should monitor cohort behavior to predict when revenue share becomes advantageous. The comparison holds true as long as players remain active beyond the crossover month. For broader context on industry standards, see the regulation tracker.
Contract terms affecting value
Negative carryover clauses reduce effective revenue share payouts. If a player’s net gaming revenue is negative, some contracts deduct this from future months. Admin fees also lower the net amount received. These terms shrink the advantage of revenue share over CPA. Affiliates must calculate net revenue after fees to determine the true crossover point. The table above reflects these cumulative totals, assuming standard net revenue calculations. Reviewing contract specifics ensures accurate forecasting of affiliate income.
Questions
When does revenue share beat CPA?
Revenue share overtakes CPA in the month shown in the key figures. This occurs because monthly net revenue accumulates faster than the single CPA payment over time.
How does churn affect earnings?
Lower churn increases lifetime revenue share value. Higher churn reduces total earnings by shortening the active period. The average stay duration listed sets the baseline for these calculations.
Do fees change the comparison?
Yes, admin fees and negative carryover reduce net revenue. These deductions lower the cumulative revenue share total, potentially delaying the crossover point compared to gross revenue models.
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.