Q: CPA or revenue share — which payout model should my program use?

Q: CPA or revenue share — which payout model should my program use?

Match the model to your retention curve, not your preference.

— Use CPA (a flat payout per acquired customer) when your product has low or unpredictable lifetime value, or when you want affiliates to predict their earnings and scale traffic aggressively. You cap downside per conversion.
— Use revenue share (a % of what the customer spends, ongoing) when retention is strong and you'd rather align affiliates with quality. It self-corrects: junk traffic that churns earns the affiliate nothing.

The sharper move is a hybrid: a small CPA upfront to cover the affiliate's ad cost, plus a trailing revshare. This recruits performance buyers who won't touch pure revshare, while still rewarding quality.

Caveat: hybrid is harder to reconcile and tempts fraud on the CPA leg. Keep the upfront small enough that a fake signup isn't profitable on its own.

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