Formula and example
What goes into NGR
The commission amount depends on what the contract deducts from GGR: bonuses, taxes, game provider and payment fees, an admin fee. The same percentage gives different money under different deductions.
Write the list of deductions into the contract and check that the affiliate report is calculated by it. More on deductions in the article on NGR.
Negative carryover
If an affiliate's players win big, NGR for the month is negative. With carryover, the negative balance moves into the following months: minus €10,000 in month one, plus €15,000 in month two, and commission is calculated on €5,000. Without carryover, the negative is reset to zero, and the casino pays on the full €15,000.
Affiliates often ask for a reset, casinos want carryover. It is a point of negotiation, and it is worth settling before the first big win, not after.
RevShare or CPA
| RevShare | CPA | |
|---|---|---|
| You pay | a percentage of NGR, long term | a fixed amount per depositing player |
| Traffic quality risk | shared with the affiliate | carried by the casino |
| Best when | long LTV, strong retention | short cycle, predictable LTV |
There is also a hybrid: a small CPA plus a reduced RevShare. To compare the options, calculate the full cost of a player from the 1st to the 5th deposit, including CPA and RevShare, against their LTV.