Publishers vary by type, industry, and region, but all of these content development experts need to find the best ways to monetize their content. However, monetization models are among the most hotly debated topics in the entire affiliate world, so making a decision for your platform is not always easy.
Vimmy has a long track record of working with leading publishers and affiliates, so we have an in-depth understanding of the different monetization models available. In this article, we’ll go over the revenue sharing monetization model and how it works. We’ll also discuss the benefits of revenue sharing and give you tips to help decide if this model is a good fit for your platform.
Defining Revenue Sharing
In the affiliate context, revenue sharing is a monetization structure where publishers are paid a percentage of the profits from each client they generate. Also known as revshare, this model provides long-term benefits for publishers while encouraging them to attract ultra-engaged users. Rather than getting paid per each individual interaction, publishers receive a commission from all of the revenue that comes from the clients they closed.
While this varies according to the affiliate program, the commission percentage of revenue sharing programs is usually somewhere between 25% and 55%. At Vimmy, we’ve earned a reputation as one of the top revshare networks in the industry because we pay 85% commission, which is more than three times higher than our next competitors. To learn more, contact us today and our team will be glad to help.
Below, we’ve included a fresh screenshot of the publisher payouts.
Comparing RevShare to CPS
Although it’s among the most popular, revshare is not the only common monetization model that affiliates opt for. Cost-per-subscriber (CPS) is another commission structure where publishers get paid immediately once the user clicks on the “Allow” button. What happens after that doesn’t make any difference to you, however CPS monetization does have significant limitations.
Low-quality traffic capability
There is a high probability of low quality traffic or even bot traffic due to the fact that the quality of traffic does not directly affect the publisher’s income, since he gets paid immediately for each subscription. Which ultimately can lead to the fact that the ad network will have to refuse cooperation and ask for a refund.
Limits in the choice of partners
Many advertising and affiliate networks are not ready to take responsibility and the risk of low-quality traffic, therefore some networks do not work according to the CPS model at all or thoroughly check the publisher and the quality of its traffic.
Not long term income
A user cannot subscribe more than once, so you only get paid per visitor once, which is significantly less profitable in the long run.
The Benefits of Working with the Revenue Sharing Model
Now that we understand the difference between revshare and CPS (as well as the limitations of the latter), let’s take a look at the benefits of working with a revenue sharing model.
Potential for Higher Profits
The first and most evident benefit of revshare programs is that they have a much higher ceiling in terms of revenue potential. That said, remember that you need to take the right approach to make this happen.
For starters, you should only partner with brands that offer a range of products that the audience will be interested in. Furthermore, you should attract users who are likely to keep making orders in the long run, even if they opt for a smaller purchase to start off. This will result in long-term profitability that can grow exponentially, depending on the audience.
Long-Term Monetization of Quality Users
One of the most frustrating elements of CPS programs is that affiliates get paid the same commission regardless of customer quality. This is important because not all customers are the same. There are users who interact more actively with advertising and take the necessary actions. For such traffic, you get more income.
What Ad Formats Are Suitable for RevShare?
In our experience, the top-performing ad formats for revshare campaigns include:
Push notifications have become an essential part of most publishers’ monetization strategies. This format allows for the establishment of personal bonds with audience members, which makes it extremely effective for dating, forex, and other verticals.
In-Page Push (IPP) Notifications
IPP notifications are one of the newest iterations of classical push ads. Ideal for iOS devices, this format can help deliver alerts to audience members without requiring prior opt-in.
Calendar Push Notifications
Calendar push notifications appear as events on users’ calendars, making them an extremely effective method of connecting with engaged users and cultivating long-term relationships.
Ready to Get Started? Contact Vimmy Today
Our team has decades of combined experience helping publishers grow their platforms and monetize traffic as much as possible. To learn more about finding the best opportunities for revshare and earning 85% commission from your traffic, contact Vimmy today and our team will be glad to help.