If you are new to online gambling and you are looking to join any gambling affiliate programs then in the signup process you will usually run into a few different commission options.
These options mainly include CPA (Cost per Acquisition), Revenue Share, PPS (Pay per signup), wager share and more.
When it comes to casino, sportsbetting, poker, lottery and bingo you will mainly have a choice of revenue share or CPA while poker is more based on wager share commission such as a percentage of the rake.
The main question most new affiliates want to know is should they take CPA over Revenue Share or the other way around?
In theory all affiliates should earn more money in the long run taking revenue share over CPA but unfortunately in the business things haven't worked that way. What affiliates need to know is the average lifetime value that a player can be.
CPA is a one time commission you get when a player deposits with that money being earned instantly and is in theory less money than you would receive with revenue share but it comes at the expense of not having to wait out the life of that player.
Pros of CPA
- Upfront Payment
- Less concerns with shaving
- Earn more money from smaller players
Cons of CPA
- Earn less money over time
- Earn less money from whales
Before 2010 most affiliates would probably have said that revenue share is the way to go for earning the most money. In 2012 many affiliates would probably have something different to say.
In the past few years there have been many programs that have closed completely, closed their affiliate programs or have retroactively changed their terms and conditions which in effect has allowed operators to cut out affiliate commissions.
A few programs that have gone out of business include: Doylesroom, Victory Poker, Lucky Vegas 77, Casino Coins.
A few programs that have closed their affiliate program while keeping their players: BetUS Partners, Grand Prive, Sportingbet Affiliates.
A few programs that have retroactively changed their terms and conditions: bewinners, Star Partner, Score Affiliates.
Another reason why CPA is more appealing is when gambling companies have to pull out of a market. When this happens your revenue share on that player becomes worthless as the player can't play there anymore. If you had gone the CPA route maybe you would have more in your pocket.
Whether you are in online gambling or another field, being an affiliate can be very rewarding but affiliates must look after themselves. CPA might not be the best option for potential income but it is certainly the safer way to do business with an affiliate program and allows both parties to walk away should they disagree on anything or if an affiliate program changes in anyway.
