May 18, 2022
7 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.
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 best affiliate marketing product on the Digistore24 Marketplace, it’s important to understand the differences between CPA vs. Revshare so that you can decide what is right for you.
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 is short for revenue share and it's 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.
CPA (for Affiliates):
CPA (for Vendors):
Revshare (for Affiliates):
RevShare (for Vendors):
So, these are the high-level bullet points for CPA and RevShare commission models, but below, we break down the benefits for both in more detail...
CPA or RevShare... Which one could work better for you?
1. You scale faster with CPA. You gain immediate insights into your profit margins and the amount you can invest in expanding your advertising campaigns or marketing promotions.
2. Earnings are guaranteed. While the amount earned may vary depending on the specific terms, your earnings are predetermined and considerably more predictable.
3. Calculating ROI (earnings after ad spend) is super straightforward. You don't need to wait for the return cycle to determine your ad spending limits, and there's no need to be concerned about returns affecting your overall profits.
1. One of the top benefit is being able to attract high-value affiliates that have substantial ad spend. Many of the industry's leading affiliates prefer CPA commissions as they seek low-risk and easily quantifiable offers before committing to significant ad expenditures for their campaigns.
2. More ads equal increased traffic that of course leads to higher sales. By engaging a larger number of affiliates willing to promote your products, you can drive more traffic to your offers, resulting in a nice bump in sales.
3. On the flipside, calculating your ROI becomes more challenging. In most cases, it becomes your responsibility to ensure that your margins remain profitable with the designated CPA amounts. This can be complex because each affiliate possesses a different average order value (AOV) based on the quality of their traffic.
1. RevShare may offer better commissions. If you generate high-quality traffic with low returns, you are likely to earn more revenue with a revenue share model compared to CPA.
2. Calculating your ROI is a bit more difficult, compared to CPA. It is important to analyze your earnings per conversion over time to ensure you're accurately considering losses stemming from returns.
3. RevShare can potentially yield long-term benefits. For top-performing affiliates, revenue share presents an opportunity for recurring income and a higher percentage of total sales, making it an attractive choice for sustained revenue growth.
4. However, RevShare comes with a higher risk. The responsibility of managing calculations rests on your shoulders to ensure profitability, taking into account the rate of returns and chargebacks from customers you refer.
1. Calculating your ROI (earnings after commission) is straightforward, making it less likely to result in negative returns. As long as your earnings surpass the cost of goods sold (COGS), you can achieve profitability.
2. Both vendors and affiliates have a vested interest. In contrast to CPA, if an affiliate exaggerates or misrepresents an offer in their marketing efforts, it can have negative consequences.
If you're an affiliate who wants to browse a few CPA or RevShare offers on the Digistore24 Marketplace, we've got you covered...
SightCare is an all-natural vision support supplement. It's one of the newer offers on Digistore24 with a amazing CPA with proven conversion at scale!
The type of traffic it performs best with includes email and paid media.
BrocElite Stabilized Sulforaphane is the only supplement of its kind in the Digistore24 Marketplace!
It's has a long list of nutrients and health benefits… all loaded into one patented, convenient capsule.
An offer that’s guaranteed to bring you a flood of high-quality buyers.
Natural Teeth Whitener whitens teeth up to 6 shades in a very short time. If you have a health audience, this offer can be great to promote.
The offer has a lot of benefits, and great success stories that you can share with your audience via email or social media.
The vendor, Primal Life Organics, sold over 700,000 units and has been featured on Dave Asprey’s podcast episodes, #753 and #866. Plus, The Natural Teeth Whitener was the #1 Best product at the Upgrade Biohacking Conference in 2021 and 2022.
Make sure to also check out their affiliate support page for promotional content and slides.
This is an amazing guide to improve health with a Keto plan. It works with any weight loss, diet and health traffic. Both via email and Facebook, Google, Tiktok, Youtube and Native Ad networks.
You can promote free keto recipes to get the attention of your target audience. Once people sign up for the free keto recipes (you get the leads, not us!) they will see an offer for this keto meal plan for only $1.
You only have to make a $1 sale! That's the magic behind this offer. Make a $1 sale but rack in a large average order value. That's why this offer converts like crazy!
A 20-word script used by high-earners to manifest anything with remarkable speed. Turn your life around with the help of the magical Genie Script!
With this simple and to-the-point method, you'll be making money faster than you can say 'abracadabra'.
Tube Mastery and Monetization is the best YouTube course and community on the market. It's a tried-and-tested course for making popular YouTube content that generates revenue and doesn't require users to show their faces.
It's how Matt Par runs 9 different YouTube niche channels without even showing his face.
Promote this amazing YouTube course - one of the best on the market - and get 50% of every sale!
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. In addition, check out this article as well to learn affiliate marketing tips for free.