CPA vs Revenue Share
How many times have you heard about CPA and Revenue Sharing and tried to understand the difference between them? It is time to figure out which marketing model is better and which one is more preferable to you. Today, fighting out of the red corner Revenue Sharing will try to defend the champion belt from CPA marketing model from the blue corner, that gains popularity faster than the light speed. As Michael Buffer said: “Let’s get ready to rumble!”
No doubt, both models work very well, but the “battle of titans” demands a detailed analysis and comparison. There are marketers and entrepreneurs that make a killing on the CPA or Revenue Share model. Why are they so prosperous? Easy, because these marketers do whatever they are good at, thus enjoying their work.
Some marketing specialists recommend newbies to start with CPA because, at first sight, it brings quick cash. Others, on the contrary, consider that it is much easier to receive income from a single piece of work which Revenue Share can provide. So, who to trust?
You can meet many articles about CPA and Revenue Sharing benefits. There you can read about why marketers prefer to promote CPA or Revenue Sharing offers. After all, those marketers invite you to join them and come forward.
The truth is that you can find a good program among a thousand similar offers of CPA or Revenue Sharing models. The most important is not to give up and understand what you like more. In this post, we will unveil what is different on these marketing methods.
What is the difference between Revenue Share and CPA?
Also known as “Revshare”, is a commission model where an affiliate receives a percentage or profits from each sale he made. Revshare has a big potential, and you can raise your income, but you also can lose it all, if you aren’t active.
Revshare offers are usually long-term projects, they can last for years, but sometimes it is enough 6 or 12 months. That’s right, with the right approach and study of the project you are planning to undertake, you can provide yourself with income for several years.
Before taking the offer, learn the financial markets. Some programs are based on the broker’s revenue that will be generated from your trader, and some of them prefer a percentage of the product value.
Another type of Revshare goes around the percentage of cost per product or service. According to this structure, the affiliate receives a fixed dollar amount (ex.: 15 dollars) per lot that was traded by a qualified referral.
CPA or cost-per-action was created for Internet promotion. The idea of this model goes around advertiser that pays only for a particular action of the user who engaged with the ad.
While Revshare model pays only when a user makes a purchase, CPA pays when someone takes a specific action that is not always a sale. The action can be: subscription, sharing the email, click on the banner, install the app, registration, click, etc.
Instead of focusing your digital ad spend on awareness metrics (impressions and clicks), CPA allows advertisers and affiliates to spend money on real business results (leads, conversions, and sales).
According to Conversantmedia.eu, customers spend 58% more money on affiliates’ ads than on all other advertising channels. CPA is more popular today because it is not necessary to sell a product in order to earn a commission. It is much easier to make somebody give you his email address, install a free app, or start a free trial than making him pull out his credit card.
Comparison of both marketing strategies
We’ve made a little research and defined the most frequently appeared questions about Revenue Share and CPA. Relying on these questions, we will compare both marketing models.
Which pricing model brings more money?
Here we can answer without solving down that both marketing models are able to bring both parties (affiliates and advertisers or merchants) high commissions. CPA commissions depend on the actions that were chosen by the advertiser.
CPA brings fast and constant income. Driving traffic to a particular landing page can lead you to money. You can earn $0.50 to $20 per action. A good CPA offer can be more upfront.
Kehinde Awosemo an internet marketer said that average marketer can earn from $1000 to $10.000 monthly with CPA marketing, and this is really achievable.
Revenue Share is a good base to build a long-term partnership with potentially high income. With Revenue Share you are interested in players that will play longer. The more the user plays, the more you earn.
Revenue Share doesn’t produce immediate effect but later can bring a high income. Every year the amount grows. Let’s assume that every partner generated $300 for the first year. With a 30% Revshare rate, a partner can make $90 from each affiliate. Let’s put a case that affiliates have sent 100 players. Thus, 100x90 = $9.000, good start, ha?
There are three most important targeting markers: audience, location, and time. Knowing a type of the audience (women, men, age, interests, other demographic information) will help you hit the mark. This data is most important for merchants that want to know who to ask for a promotion.
As for geolocation, you can’t target all the planet (we mean all the countries) with one promotional campaign. It’s not reasonable. Choose the country, region, or city where to send traffic. Gain popularity gradually, and expand bit by bit. There is no rush.
Time is the most expensive thing we have. Time is responsible for relevance. It is responsible for the best time to launch the campaign to increase the user’s awareness. As you see, everything is connected.
Revenue Share doesn’t limit you on traffic source and traffic methods, so you choose how to act. Some Revenue Share sites pay any type of flat fee plus a percentage bonus based on traffic or clicks.
CPA model assumes that advertiser chooses the methods of traffic. So affiliates are partially restricted, but you can see the conversion increase (affiliate networks allow tracking the conversion). CPA targeted traffic depends on conversions that were mentioned by the advertiser.
How about payments and refunds?
The payment system of Revenue Share and CPA marketing model are similar. CPA networks usually pay you faster (it can be weekly, bi-weekly, or even daily) and there are no refunds. As soon as you reach out the minimum payout for the CPA network, you will be paid.
Revenue Share payments work through the entire length of the agreement between affiliates. The payments can be reduced by the minimum (monthly pay) and made for the particular month where the revenue was generated. The payment varies depending on income in a particular month.
The partner receives income according to the agreement (a percent from each sale). Sometimes, the company or client set the rules of partnership. For example, WixDevelopers points that Revenue Share will be payable to the affiliate that collected the relevant revenues during 45 days.
If the monthly Revenue Share is higher than $10.000, the payment will be made on a monthly basis. But, if the amount is lower than $10.000, the payment will be released on a quarterly basis.
Quality of offers
Well, there is no clear answer which affiliate marketing method has better offers. Networks based on Revshare model and CPA networks can’t guarantee you 100% fraud-free traffic. Many offers based on Revshare and CPA marketing models are hard to promote, but they work. More precisely, it’s not as difficult to promote as to achieve the desired action from the customer.
Eventually, not all networks can work perfectly, you just avoid those which are worrying you. If you are newbies, then make your investigations in this sphere, read the reviews, etc.
Today, in the epic boxing tournament we have a dead heat. Both marketing models showed that they offer a win-win strategy for affiliates, advertisers or merchants. Revenue Sharing and CPA are great ways of earning online. Moreover, you don’t have to limit yourself to a single model, you can combine them both.
Marketers advise starting with CPA if your activity is connected to products or services. If you are a game developer, then Revenue Sharing will be the perfect affiliate model. You always can connect to CPA manager and ask how the network can be useful to you. The same, you can consult with Revenue Share specialists and find out how you can reach the income with the promotion.
The choice depends on your mindset and what type of affiliate you want to be. As you see, everything is relative. So, don’t be afraid to start.
While we work with pretty much all app categories