What is RevShare? A Beginner’s Guide to Revenue Share in Affiliate Marketing
- Maria Emmanuelle Arnidou
- Jul 10
- 1 min read
Updated: Nov 12
WHAT IS REVSHARE? – BEGINNER’S GUIDE
Simple explanation of revenue share in affiliate marketing, with practical math and gotchas.
Factbox
• Definition: % of net revenue you refer, paid monthly
• Typical ranges: 20–40% (vertical-dependent)
• Baseline formula: RevShare = (Net Revenue) × (Your %)• Net revenue usually = GGR − bonuses − fees − chargebacks
• Pros: lifetime value, aligned incentives
• Cons: volatility, clawbacks, negative carry at some networks
How it works (quick)
You refer a user → they deposit/spend.
Operator calculates net revenue.
Your % applies; paid on a schedule (often monthly).
Numerical example
If net revenue is $1,000 and your revshare is 30%, payout ≈ $300. With negative carry, a −$200 month can offset next month unless there’s no-negative-carry.
When to prefer revshare over CPA
• You can drive high-intent, loyal users.
• You trust the operator’s retention and reporting.
• You can handle monthly variance.
Risks & clauses to check
• Negative carry, minimum activity thresholds, tier resets, sub-affiliate rules, brand bidding restrictions.
Verdict
Pros: compounding upside with retained users.
Cons: delayed ROI and accounting complexity.