Missing the negative-carryover clause in your rev-share deal

Missing the negative-carryover clause in your rev-share deal

Revenue-share with brokers carries a clause most affiliates skim: negative carryover. The mistake: not knowing whether trader losses you owe back roll forward into next month.

The mechanics:
— On rev-share, you earn a cut of net trader losses to the broker. When traders win big in a month, the broker's net can go negative — and you can owe.
— With negative carryover, that deficit rolls into the next month and eats your future earnings until it clears. Without it, each month resets at zero.

The fix:
— Read for 'negative carryover' / 'carry-forward of negative balance' before signing. Push for no-carryover or a capped/reset clause.
— Model a bad month: if a handful of your traders hit a winning streak, what's your downside? If you can't take a zero-earning month while a deficit clears, rev-share is the wrong deal structure for you.
— Prefer hybrid (CPA + rev-share) so the CPA floor cushions negative-carryover months.

Who should skip this: pure CPA affiliates — carryover doesn't touch you.

Verdict: Read the carryover clause first.