Q: Should I cap revenue-share earnings or leave them uncapped?
Leave them uncapped by default — caps are the fastest way to lose your best partners. A partner who hits your ceiling and watches their effort stop earning will move that traffic to a competitor immediately.
Use caps only in two specific cases:
— Time-limited or trailing revshare where lifetime payouts could exceed customer LTV (cap by deal: e.g., revshare for 24 months, then it ends).
— Bonus or top-up programs you can't sustain at scale.
If your worry is margin, fix the rate, not the ceiling. An uncapped 15% is healthier than a capped 30% — it scales linearly with your own revenue and never punishes success.
The alternative to capping: declining tiers, where the rate gently steps down past a volume threshold. Partners keep earning more in absolute terms while your blended margin holds.
Caveat: any cap, however reasonable, must be in the terms before signup. Retroactive caps are how programs get publicly torched.
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Q: Should I cap revenue-share earnings or leave them uncapped?
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