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Hybrid deal (CPA + RevShare)
A hybrid deal in affiliate marketing merges the certainty of fixed CPA (Cost Per Acquisition) payments with the long-term income potential of Revenue Share arrangements. In the iGaming sector, this blended commission structure has become a strategic tool for operators seeking balanced acquisition costs and for affiliates pursuing both immediate payouts and recurring revenue.
This article explains what a hybrid deal is, how the combined payout mechanics work, and why this structure often outperforms standalone CPA or RevShare models in iGaming affiliate partnerships.
What is a hybrid deal?
A hybrid deal is an affiliate program commission structure that combines a fixed CPA payment with an ongoing percentage of net gaming revenue (NGR) from referred players. Affiliates receive a one-time payment when a player makes a first-time deposit (FTD), then continue earning a share of that player’s generated revenue over time.
The hybrid model reflects a risk-sharing approach. Operators benefit from predictable upfront costs while maintaining alignment with affiliates on player quality. Affiliates gain immediate compensation that supports cash flow, along with exposure to the upside of high-value players.
Typical hybrid structures in iGaming combine a fixed CPA component with a RevShare percentage. The exact CPA amount and RevShare rate vary based on geography, traffic quality, and negotiated terms.
The individual rates are usually lower than standalone programs, since affiliates receive benefits from both components.
How does a hybrid deal work?
The mechanics of a hybrid deal follow a straightforward sequence:
- Agreement phase. The affiliate joins an operator’s program and agrees to hybrid terms: CPA amount, RevShare percentage, NGR calculation method, deductions, and attribution window.
- Player acquisition. The affiliate drives traffic using unique tracking links. When a visitor registers and makes an FTD meeting minimum thresholds, they become an attributed player.
- CPA payout trigger. Once the player completes the qualifying action, the affiliate receives the fixed CPA payment, credited regardless of subsequent player activity.
- Ongoing RevShare calculation. As the player wagers, the affiliate earns their agreed percentage of NGR, calculated after deductions for player winnings, bonuses, taxes, and fees.
- Recurring payouts. RevShare commissions continue as long as the referred player remains active.
Examples of hybrid deals
Standard hybrid. An affiliate promotes an online casino with terms of €50 CPA plus 25% NGR RevShare. In Month 1, they refer 10 players generating €4,000 in NGR. Total earnings: €500 CPA + €1,000 RevShare = €1,500.
Tiered hybrid. A casino operator offers $40 CPA and 20% NGR at baseline, scaling to 30% NGR once the affiliate delivers 50+ FTDs monthly. The tiered structure incentivizes volume while maintaining quality standards.
No negative carryover hybrid. Some programs structure hybrids so affiliates receive full CPA regardless of whether referred players show negative NGR. If players win more than they lose, the RevShare zeroes out for that period rather than carrying forward.
Benefits of hybrid deals
The hybrid model addresses structural limitations found in pure CPA and pure RevShare model (revenue share) arrangements:
- Risk distribution. CPA places acquisition risk on operators; RevShare shifts risk to affiliates. Hybrids distribute exposure across both parties, creating more sustainable partnerships.
- Affiliate cash flow. Affiliates funding paid media campaigns face upfront costs. The CPA component provides immediate returns that support reinvestment, while RevShare preserves long-term earning potential.
- Quality incentives. Because affiliates still earn ongoing RevShare, they remain motivated to send high-quality traffic rather than maximizing volume at the expense of player lifetime value.
Common pitfalls and challenges
Unclear NGR definitions. Disputes arise when operators apply deductions (platform fees, fraud write-offs, chargebacks) that affiliates did not anticipate. Transparency in NGR formulas is essential.
Lower component rates. Both CPA and RevShare percentages in hybrid deals typically fall below standalone rates. Affiliates must model scenarios to determine combined value.
Negative carryover ambiguity. Some agreements include negative carryover on RevShare, meaning losses carry forward. Clarify carryover policies upfront.
Attribution complexity. Ensuring accurate player attribution across multiple campaigns and operators requires reliable S2S tracking infrastructure.
Compliance considerations. In regulated markets, affiliates must ensure promotional content meets advertising standards and responsible gambling requirements.
How to optimize a hybrid deal
Negotiate based on data. Present historical performance — conversion rates, player retention, average deposit values — to justify higher CPA or RevShare rates. Operators reward affiliates who demonstrate quality.
Model scenarios before committing. Calculate expected earnings under different player behavior assumptions. Determine which deal type maximizes returns for your traffic profile.
Prioritize transparent programs. Choose operators with clear NGR formulas, real-time reporting, and reliable tracking infrastructure.
Monitor performance continuously. Track RevShare accruals against player activity to identify discrepancies early. Compare reported NGR to expected values.
Wrap-up: how to maximize hybrid deal potential
The hybrid commission model offers affiliates a practical middle ground: immediate CPA payments that sustain operations combined with RevShare exposure that rewards quality traffic. For operators, hybrids provide cost predictability while keeping affiliates invested in player retention.
Success requires clarity on terms — particularly NGR definitions, carryover policies, and attribution methods. Affiliates should model expected outcomes before committing and monitor performance against projections.
Platforms like Blask enable affiliates and operators to analyze market performance data across geographies, helping both parties benchmark hybrid deal terms against industry standards. Whether structuring your first hybrid agreement or optimizing an existing partnership, informed negotiation and ongoing measurement remain the foundation of sustainable affiliate revenue.
FAQ
What is a hybrid deal in affiliate marketing? A hybrid deal combines a fixed CPA payment per qualifying action with an ongoing RevShare percentage of net gaming revenue from referred players.
How is hybrid commission calculated? Hybrid earnings = (Number of qualifying actions × CPA rate) + (RevShare percentage × NGR). Example: 5 FTDs at €50 CPA plus 25% of €2,000 NGR yields €250 + €500 = €750.
Is a hybrid deal better than CPA or RevShare alone? It depends on traffic characteristics. Hybrid suits affiliates with mixed player quality; pure CPA favors high volume with short player lifespans; pure RevShare benefits affiliates delivering high-LTV players.
Do hybrid deals include negative carryover? Some do. Negative carryover means player wins in one period carry forward before new commissions accrue. Many programs now offer no negative carryover to attract affiliates.