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The Hybrid Deal: Balancing CPA and RevShare for Affiliates

Major operators like Bet365 and 888 Holdings constantly refine their affiliate programmes to attract high-quality traffic. Central to this is the commission structure, where the hybrid deal has become an industry staple.

It represents a middle ground between the immediate reward of Cost Per Acquisition (CPA) and the long-term potential of Revenue Share (RevShare). The model aims to align the interests of both the operator and the marketing partner, creating a more sustainable relationship.

How a Hybrid Commission Model Works

The structure of a hybrid deal is straightforward. It combines two distinct payment triggers into a single commission plan. An affiliate receives a fixed, one-time CPA payment when a referred player completes a specific action, most commonly their first real-money deposit. This provides immediate income for the affiliate.

In addition to this, the affiliate earns a pre-agreed percentage of the Net Gaming Revenue (NGR) generated by that same player. This RevShare component typically lasts for the player's lifetime with the brand, providing a long-tail source of income. The rates for both the CPA and RevShare elements in a hybrid plan are typically lower than their standalone equivalents.

The Operator's Perspective

For an operator, the hybrid model is a valuable risk management tool. A pure CPA structure can sometimes attract low-quality traffic or players interested only in a welcome bonus, who then churn quickly. By including a RevShare component, the operator incentivises the affiliate to deliver players who are likely to be loyal and generate sustained revenue. This approach supports the UK Gambling Commission's broader objectives for a sustainable market built on responsible player acquisition.

The Affiliate's Calculation

From the affiliate side, a hybrid deal offers financial stability. The upfront CPA payment helps to cover immediate marketing costs, such as paid advertising or content development. This is particularly useful for new or growing affiliates. The RevShare portion then builds over time, creating a more predictable revenue stream than a purely performance-based model. If you are an affiliate, this structure can smooth out the month-to-month volatility of pure RevShare. A short side note: established 'super affiliates' with a proven record of delivering high-value players may still favour pure RevShare deals at premium rates.

Negotiating a Fair Hybrid Agreement

The success of any partnership rests on the clarity of the agreement. When assessing a hybrid deal, affiliates must scrutinise the definitions of key terms. These include the exact CPA trigger (e.g., minimum deposit amount), the precise formula for calculating NGR, and whether terms like negative carryover apply.

Our view is that a transparent NGR calculation, without ambiguous 'admin fees' deducted, is the foundation of a trustworthy partnership. Affiliates must also understand their obligations for responsible marketing. All promotions must be fair, clear, and targeted strictly at adults (18+). For guidance on responsible gambling, resources like BeGambleAware.org provide essential information.

The structure of affiliate deals is not static. As recommendations from the UK Government's Gambling Act Review white paper are implemented, metrics around player value and affordability checks will undoubtedly shift.

This will likely prompt further evolution in commission models, potentially making the risk-balanced hybrid deal even more central to the operator-affiliate relationship in the years ahead.

Questions readers ask

What defines a hybrid deal in affiliate marketing?

A hybrid deal is a commission model combining two payment structures. It typically includes a one-off Cost Per Acquisition (CPA) payment for a new depositing player, plus an ongoing percentage of the revenue (RevShare) that player generates for the operator.

Why do operators favour hybrid deals for new affiliates?

Operators favour hybrid deals to balance risk while incentivising quality traffic. The model discourages affiliates from sending low-value players, as the affiliate's long-term earnings are tied to the player's ongoing activity through the RevShare component.