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Playbook

Revshare vs CPA vs hybrid: the math that matters

A practical cheat sheet for negotiating, modelling, and reporting commission structures.

Playbook2026-04-08·7 min read
Maria K.

Every affiliate deal is a spreadsheet with two sides. The brand models their side; if you don't model yours, you're negotiating blind. Here's how we think about commission math at xuly.io.

Revshare

You earn a percentage of the brand's net revenue from the players you send. Typical range: 20–40%. Pros: compounds with player lifetime value — your best players keep paying for years. Cons: brands negotiate harder at renewal because they've seen your cohort perform.

E(monthly earnings) = FTDs · avg_monthly_NGR_per_player · revshare_pct

CPA (cost per acquisition)

Flat fee per first-time depositor. Typical range: $100–$500 for iGaming, up to $1,000+ for high-roller traffic. Pros: predictable cash flow, easier to forecast. Cons: no upside for exceptional cohorts, and brands often cap the number of CPAs they'll pay on a given traffic source.

Hybrid

CPA upfront + ongoing revshare. You take a lower CPA ($50–$150) in exchange for a smaller revshare (15–25%). Best structure if you trust your cohort quality — small guaranteed + unlimited upside.

The break-even math

To compare, normalise to annualised revenue per FTD. Assuming average player lifetime value of $600/year and a 25% revshare: each FTD is worth $600 × 25% = $150/year. A flat $150 CPA is break-even at 12 months. Anything above $150 CPA means the brand thinks players churn faster than 12 months — useful negotiation signal.

Tiered structures

Smart negotiators structure their revshare tiered: 20% on first 10 FTDs/month, 30% up to 50, 40% above 50. This incentivises you to push harder without the brand eating a revshare cliff. In xuly.io, tiered deals are modelled as a single 'deal' entity with a per-bucket rule table.