Definition
Revenue share: the affiliate earns a percentage of the net revenue a referred player generates, for as long as they play.
Instead of a one-off fee, the affiliate takes a continuing share — typically between a fifth and a half of net revenue — for the lifetime of the referred player. It aligns the two sides: the affiliate now earns more by sending players who stay than by sending many who do not.
How it works
The percentage applies to net revenue, and the definition of “net” is the whole negotiation. Deductions commonly include bonuses, payment processing fees, gaming duties and chargebacks, so the same headline percentage can describe very different payments depending on what is subtracted first.
Rates are often tiered by volume, measured monthly. The term that matters most, though, is negative carryover: if a cohort of players wins more than it loses in a month, the deficit may be carried into the next month and set against the affiliate’s earnings. A deal without carryover resets to zero each month, which is materially different and worth more than a few percentage points of headline rate.
Income accumulates slowly and then persists. A revenue-share book built over years keeps paying from players referred long ago, which is its real value.
Why it matters in iGaming
Player lifetimes in this sector can be long, and the difference between a one-off fee and a share of several years of play is large. For a site with a durable audience, revenue share is usually the better instrument.
It also changes what the site is incentivised to publish. An affiliate paid for the long run has a direct interest in sending people to operators that pay out reliably and treat players well — which happens to be what readers want too, and one of the few places where the commercial and the editorial incentive point the same way.
Example
An affiliate refers a player who stays for three years. Under a one-off fee, the referral paid once. Under revenue share, it pays every month that player is active and totals several times the fee. The reverse also happens: a cohort that wins heavily in month one produces nothing, and with negative carryover produces nothing in month two either.
Common mistakes
- Comparing percentages instead of definitions. A high rate on heavily deducted net revenue can pay less than a lower rate on a cleaner definition.
- Signing with negative carryover without pricing it. One winning cohort can wipe out several months, and the clause is often negotiable.
- Choosing by preference rather than by market. Retention decides which model wins, and it differs enough between markets that the same affiliate should use both.