The affiliate commission debate every iGaming operator must navigate. Following on from affiliate marketing 101 article, I have created further deep dive into affiliate deal models.
Affiliate marketing drives 30-50% of new player acquisition for most online casinos, making your commission structure one of the most important decisions in your affiliate strategy. Yet iGaming operators consistently ask: should we offer RevShare, CPA, or both?
After working with multiple casino brands optimising their affiliate programmes, I’ve learned there’s no universal answer, only strategic trade-offs. Here’s how to think through the decision critically.
RevShare: The Long-Term Partnership Model
How It Works: Revenue Share pays affiliates 25-50% of a player’s net gaming revenue (NGR) for their lifetime. The affiliate earns monthly as long as the player remains active. Giving affiliate the incentive to find valuable FTD’s & beyond.
The Upside:
True Partners: Affiliates focus on quality players, not volume. A high-LTV player benefits both parties (affiliate & operator), creating true partnership rather than transactional relationships.
Lower Initial Spend Risk: No large upfront payouts are giving to the affiliates. You only pay when players generate revenue, protecting cash flow during launch phases, de-risking affiliate costs and performance.
Better Player Quality: RevShare affiliates typically send more on finding engaged, longer-term players because their earnings depend on retention, not just acquisition. Finding valuable FTD’s in the market is true pain point for all igaming operators.
The Downside:
Ongoing Liability: You’re committed to paying affiliates indefinitely. A player depositing for years means years of commission payments—potentially thousands per player to the affiliate. You can negotiate with your affiliate partners to include RevShare for 24 months.
Complex Tracking: Requires sophisticated affiliate platforms tracking lifetime player value, negative carry-over (what happens when players win big?), and monthly reconciliation. Having a strong affiliate tracking platform is critical for any expenditure leakage.
Delayed Affiliate Earnings: New affiliates wait weeks or months for meaningful income, making RevShare less attractive for smaller publishers needing immediate cash flow. Depending on your affiliate’s acquisition method, they may require capital upfront to acquire audiences and therefore they want upfront funds. This leads us into the CPA model.
CPA: The Acquisition-Focused Model
How It Works: Cost Per Acquisition pays affiliates a one-time fee (typically £50-£300) when a player meets the criteria, usually a first deposit above a minimum threshold. CPA £ depending on what the igaming operator is willing to pay vs market standards vs affiliate size & reliability and affiliate marketing type (ASO vs comparison sites)
The Upside:
Predictable Costs: You know exactly what acquiring a player costs. Budget forecasting becomes straightforward, and there’s no long-term commission liability. While this gives you a player cost, it can be volatile depending on affiliate ability to turn traffic on or off.
Attractive to Affiliates: Immediate payment appeals to smaller affiliates and those focused on volume. It’s easier to sell a partnership based on: “Earn £150 per player, paid within 30 days.”
Simplified Administration: One-time payments require less complex tracking systems and fewer ongoing reconciliations.
The Downside:
Misaligned Incentives: Affiliates optimise for volume, not quality. They’ve no incentive to send players who’ll stay with the brand long-term, these are players who’ll deposit once. This is vital to understand how this will impact your retention programmes and brand performance.
Higher Risk: You pay upfront regardless of player LTV. If a player deposits £20 and never returns, you’ve still paid £150-200 CPA. The economics only work if enough players become profitable. Pushing pressure to CRM & Trading teams to squeeze money from low value player base. You need to understand effort vs reward and opportunity cost in spending resources trying to gain value from affiliate acquired players.
Bonus Hunters: CPA models attract affiliates sending players who exploit welcome bonuses and churn immediately, typically costing you twice (CPA fee + bonus cost) with no ‘real’ long-term value to the business.
The Strategic Framework: Choosing Your Affiliate Strategy
The right model depends on your business reality, not industry trends.
When should you choose RevShare Model:
- You’re a new casino building long-term partnerships
- Cash flow is constrained (can’t afford £200+ per player upfront)
- Your retention metrics are strong (players stay 6+ months)
- You want quality over quantity
When should you choose CPA Model:
- You need rapid player acquisition for a launch or market entry
- You have capital to invest upfront in growth
- Your LTV data shows players become profitable within 3-6 months
- You’re comfortable with volume focused affiliate partners vs value affiliate partners
The Hybrid Approach: While there is two distinct affiliate models, we are able to blend these together to find an optimised approach. Most successful iGaming operators run hybrid programmes, looking like RevShare as default with CPA options for specific partners, markets, or campaigns. This flexibility attracts diverse affiliate types while maintaining quality standards.
My Perspective as an iGaming Consultant
After analysing affiliate performance across dozens of casino brands, here’s what the data consistently shows. RevShare generates higher-quality players with 40-60% better retention at Month 6, while CPA delivers 2-3x higher volume but 30-40% higher churn rates.
Neither is inherently superior. Your affiliate strategy should match your business stage, capital position, and growth objectives. Early-stage casinos often can’t afford CPA models. Established operators with strong retention can profitably offer both.
The mistake? Choosing based on what competitors offer rather than what your economics support. That’s strategy by imitation, not analysis.
What’s your affiliate commission model, and why did you choose it?
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