How to determine the real value of a bet in gambling working on RevShare
RevShare is quite a popular pay per conversion system in various verticals. But it is most often used when it comes to betting and gambling. Before choosing this method for a webmaster, it is worthwhile to understand its features. Firstly, it is important to calculate the profitability of the offer, to determine the economics of the bay.
What is RevShare?
First, let's look at the basis. Revshare's payment system is fundamentally different from the more common CPA calculation method. With CPA, a fixed payment is received for making a targeted action (it can be registration, order). RevShare, on the other hand, assumes that webmasters receive a percentage of the advertiser's profit.
The most important metrics in gambling in RevShare calculations
Online casinos and betting shops are interested in attracting an audience, and from users who will constantly deposit funds and bet (in slots or sports). In this case, the webmaster will have excellent KPIs and high payouts. However, this is an ideal situation, which means that you can not count on a stable profit.
It is important to take into account that it is not the amount of the client's deposit that is taken into account, but the amount of his loss, which is the profit of the casino or bookmaker.
To work on RevShare system in gambling and betting, it is important to determine the following indicators:
- GGR - the total value of casino revenue.
- NGR - the amount of net profit.
- Admin Free - amounts spent on administration of the platform.
For example, a new offer is offered at a rate of 30%. The webmaster may assume that from each deposit of 100 euros he will receive 30 euros. But in reality, the figures will be completely different. In this regard, it is important to understand the principle of accrual.
In practice, it all looks different:
- The client deposited 1000 euros and lost them completely.
- Admin Free's expenses amount to 1000 euros.
- Calculation of payments on the offer is carried out according to the formula NGR x 0.3.
The administration fee differs for each advertiser. In some cases, it can amount to 20-30% of the loss. This means that it is difficult to calculate the conversion payout in advance. But even in this case, there is a solution.
Do not know where to find top gambling offers? We have collected the rating of affiliate networks with the best offers on the market.
How to determine the real rate?
It is difficult to determine the net profit based only on information from the manager. At the same time, Admin Free amounts are often under NDA, and therefore are not disclosed. In this regard, you have to rely on your own strength when making calculations. The easiest option is to determine the profit that can bring Revshar for conversion, test the offer yourself. To do this, you need to register through a link in affiliate networks, deposit money (not necessarily a large amount) and lose them. After that, analyze the payments by statistics.
This method does not apply to fraud (what is fraud and how to fight it, read here), as you really made a deposit and the casino received its profit. Webmaster can determine the real profit and understand whether it is worth working with this offer. However, to avoid conflict situations, it is worth asking the manager if he is not against such testing.
One of the thematic forums published the result of such a test. The example allows you to understand how the lack of basic knowledge about this model affects the calculations on the bays.
So, there was a test registration in the casino with the locale Serbia. On the deposit was made 20 euros. According to the rules of the gaming club, a registration bonus of 100% was credited. After that, the entire amount was lost.
In the report of affiliate networks after some period the conversion was displayed. NGR of the casino is 55% of the deposit made, that is, 11 euros. 9 euros were spent on administration costs.
Carrying out simple mathematical calculations shows that at a RevShare rate of 50%, the webmaster will receive 27.55% of the total user loss (which is almost two times less than the deposit of attracted users).
The RevShare calculation system can be profitable over the long haul. However, it is important to remember that the casino has additional costs, the size of which may vary. Full transparency, as in the CPA payment system, is impossible to obtain.
