RevShare and NGR: how partner commission is calculated
Why the percentage comes from NGR rather than deposits, what to do with negative NGR and how a hybrid deal works, with numbers.
RevShare looks simple: the partner gets a percentage. Questions start when you ask what it is a percentage of. Using the wrong base is the most common way to overpay partners on RevShare. Let us go through it with numbers.
What NGR is
NGR (Net Gaming Revenue) is what the casino actually earned on a player. Roughly: bets minus wins, minus bonuses, payment fees and taxes. Wins, withdrawals, losses and bonuses are already inside this number, so you do not count them separately. The casino calculates NGR and sends it to the network.
Why not from deposits
A player deposited 1,000 and eventually withdrew 1,300. The casino lost 300 on them. If you pay a percentage of deposits, the network pays the partner money it never receives itself: the advertiser calculates RevShare from NGR only. A deposit shows how much the player brought in, not how much was earned on them.
Example with numbers
The casino pays the network 50% of NGR, and the network gives the partner 40%. The difference is the network's margin.
| Player NGR | Network from casino (50%) | Partner (40%) | Margin (10%) |
|---|---|---|---|
| 1,000 | 500 | 400 | 100 |
| −200 | −100 | −80 | −20 |
| Total 800 | 400 | 320 | 80 |
Negative NGR
If a player wins back, their NGR goes negative, and so does the commission. One player lost 1,000, another won 200: the partner's total NGR is 800, and the percentage is calculated from that. How to handle a negative period is the network's decision, and it should be written into the offer terms in advance.
Hybrid
A hybrid deal is a fixed rate for the first deposit plus a percentage of NGR. The fixed part is paid once per player, later deposits add nothing on their own, and the percentage part works exactly as in RevShare. Negative NGR reduces only the percentage part.
How the advertiser sends NGR
It works best when the postback carries the player's total NGR so far. Then frequency does not matter, every minute or once a day: the tracker calculates the change from the previous value. Repeating the same number adds nothing, and a lost postback does no harm, because the next one brings the current total.
ngr parameter of a regular postback, even without status and sum. An offer has two percentages, what the advertiser pays and what the partner gets, and the stats show NGR, partner commission, revenue and margin.What to check in your offers
- 1The percentage is calculated from NGR, not from deposits.
- 2The advertiser and partner percentages are set separately.
- 3The advertiser sends NGR, not only deposits.
- 4The hold on RevShare reflects the advertiser's settlement period; see the article on hold.
How to choose between CPA, RevShare and hybrid is covered in the article on payout models.