What is RevShare in Simple Words?
With RevShare, the partner receives an agreed percentage of the revenue base formed by the users involved. The key question here is not only “what percentage” but From what base does it count?. Therefore, before launching, it is important to understand the definition of NGR, the list of deductions, the rules on bonuses, returns and negative balance.
| Check it out. | Why is it important? |
|---|---|
| Rate RevShare | It determines the share of the partner, but by itself does not show the final return. |
| Formula NGR | Shows what fees and expenses are deducted before the rate is applied. |
| Negative carryover | It is important to know whether a negative result is carried over to the next period. |
| Calculation period | It is necessary to compare reports and plan cash flows. |
| Rules on source and GEO | The admissibility of traffic and the correctness of attribution depend on them. |
Example of calculation
Suppose, after all the agreed deductions, the NGR for the period was $10,000, and the partner’s rate was 60%. In a simplified example, a partner’s income would be $6,000. If the NGR is $3,500 at a 70% rate, the result is $2,450.
When RevShare is usually more logical than CPA
The model is more often chosen by owners of SEO projects, content sites, communities and sources, where the audience can return for a long time. If users stay active, RevShare is able to give a longer revenue tail. At the same time, the partner assumes more uncertainty: a strong volume of FTD does not guarantee a high NGR.
What to send to the manager before the start
- source and format of traffic;
- target GEOs;
- The expected monthly volume of clicks, registrations, or FTDs
- an example of a site or advertising materials;
- Questions about NGR, carryover and payments.
Preliminary assessment can be used RevShare calculatorSee the comparison of models on the page payment.
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