"Basically, the iGaming affiliate model is a performance-based partnership. Yet unlike 'traditional' advertising where companies pay for vague impressions or clicks, iGaming operators only pay affiliates when a specific, valuable action happens. This creates an alignment of interests and also a pretty clear separation of jobs. The main ways affiliates get paid are:"
"RevShare - the most common model. Here, the affiliate gets a pre-negotiated percentage generated by the players they refer, for as long as that very players are remaining active. The model builds long-term partnerships, as affiliates are incentivized to send over loyal players who will actually stick around and play, and not just chase a sign-up bonus. For the operator, it means their CAC is directly linked to LTV, which's a more sustainable way to grow, even if it's a slower burn."
"CPA - under this, the operator pays a fixed, one-time fee for each player who does a specific thing, usually making their first deposit. CPA is great for an operator's budget predictability - they know the exact cost of each new customer. For affiliates with firehoses of traffic, it's a faster, guaranteed payday. The downside is it can sometimes misalign incentives, therefore encouraging affiliates to focus on quantity over quality."
iGaming growth depends heavily on performance-driven affiliate marketing that pays only for valuable player actions rather than impressions. Affiliates earn via RevShare, CPA, or hybrid deals that align incentives differently: RevShare rewards acquisition of loyal, long-term players and ties CAC to LTV; CPA offers predictable, one-time costs and fast payouts but can incentivize lower-quality traffic. Hybrid deals mix upfront CPA with ongoing revenue to balance immediate cashflow and long-term value. The model creates a risk-reward symbiosis that reduces upfront operator spend and forces affiliates to prioritize player quality. Mastery of affiliate models is essential for founders competing in the sector.
Read at London Business News | Londonlovesbusiness.com
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