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Author
Kyle Dana
Director of Marketing
Most Popular
CPA vs. Revshare: What is the Difference?
May 18, 2022
2 Min. Read
In this article, we explain the difference between CPA vs. Revshare. At Digistore24, we offer both CPA and Revshare commission models so that you can choose what works best for you and your business.
CPA vs. Revshare: What is the Difference?
You may be wondering what the difference between the two is.
Whether you are an affiliate looking to promote an offer, or a vendor putting your offer on the Digistore24 Marketplace, it’s important to understand CPA vs. Revshare so that you can decide what is right for you.
CPA Commission
CPA is short for “Cost Per Action”. In affiliate marketing, this is a revenue model where vendors pay a fixed commission amount for a certain action to affiliates (ex: $50 for each referred affiliate sale).
This is commonly used when the average order value will be too low to offer a percentage of the sale.
Revshare Commission
Revshare is a revenue model in affiliate marketing where vendors split a portion of their total sales as the commission to affiliates. For example: 75% commission on sales referred by the affiliate.
For example, if an affiliate marketer promotes a $100 product at a 75% commission, they will make $75 per sale.
Revshare is probably the most popular commission model, but there are more and more vendors offering CPA and each has its own pros and cons.
Pros & Cons Of CPA & Revshare Commission Models For Both Vendors and Affiliates
CPA Affiliate Marketing Commission Model
CPA (for Affiliates):
- Super easy to calculate your commissions & profits which helps you scale faster
- Easier to make projections, as earnings are fixed and more predictable
- Vendors are fully responsible for refunds and chargebacks
CPA (for Vendors):
- Many large affiliates prefer CPA commissions, so this can help attract more affiliates to promote your offer and help get you more sales
- Easy financial management since payouts to affiliates are fixed
- You are fully responsible for refunds & chargebacks
Revshare Affiliate Marketing Commission Model
Revshare (for Affiliates):
- ROI is much more variable
- You are eligible for potentially higher returns, such as recurring revenue
- Refunds are taken away from your affiliate commissions and you share the risk of chargebacks with the vendor
Revshare (for Vendors):
- Easier to make financial projections and calculate profits
- Your payouts to affiliates are more performance-based given its tied to the order value
- Affiliates incur refund costs and share the risk of chargebacks with you
Final Thoughts
At Digistore24, we know that there are a variety of affiliates and vendors all looking for the best payout model that is right for them. It is always our goal to help you scale in the best way possible, whether that is with CPA or Revshare - the choice is yours to make!
Learn more about CPA and Revshare on our YouTube channel and explore all the various offers you can choose from on the Digistore24 Marketplace.
Author
Kyle Dana
Director of Marketing
Kyle has over a decade of digital marketing experience, including successfully launching & growing several e-commerce brands - using SEO, content marketing, social media, and more. Prior to becoming Director of Marketing at Digistore24, Kyle was an 8-figure affiliate marketer and email list manager.
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