<b>CPA vs RevShare crosses over at month 4-7, not at a single point</b>
The usual framing — "CPA pays now, RevShare pays later" — hides where the lines actually cross.
Model, illustrative but standard across ~40 Tier-1 deals:
— CPA: $180 flat, paid once.
— RevShare: 35% of monthly NGR, player NGR ~$120/mo decaying 15% monthly (churn-adjusted).
Cumulative RevShare: month 1 $42, month 3 ~$110, month 5 ~$155, month 7 ~$185.
So RevShare overtakes CPA around month 6-7 here — but the decay rate moves that point violently. At 8% monthly decay, crossover is month 4. At 25% decay, RevShare never catches up and CPA wins outright.
The decision rule isn't preference, it's two numbers:
— Your retention curve (monthly NGR decay).
— Your cashflow horizon (can you fund traffic 6 months on accrual?).
Low-decay GEOs with patient capital favor RevShare. High-decay traffic or thin runway favors CPA every time.
Benchmark of the day: below ~10% monthly NGR decay, RevShare beats a $180 CPA by month 5; above ~20%, take the CPA.
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<b>CPA vs RevShare crosses over at month 4-7, not at a single point</b>
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