Revenue Share vs RS Distribution

In the cases where a media item, player, campaign or brand becomes negative in a given date range and is on a revenue share plan, taking revenue share outputs at the face value at affiliate level would then not make sense. To combat this discrepancy in the reports, two columns are shown: Revenue Share and RS Distribution.

The logic for redistributing negative Revenue Share is not limited to a specific level, but rather it is applied consistently across various breakdowns, including by day, brand, geo, marketing source, etc. This approach ensures that the Total Reward calculation remains accurate and transparent, regardless of the level of granularity required for assessing performance and profitability.

For example, we need to accurately represent how much each brand has earned while ensuring that the negative revenue share doesn't impact the other earnings.

Example

Total Affiliate Earnings: 
An affiliate has earned a total of 1093 Euros in Revenue Share and 4200 Euros in CPA, resulting in a grand total of 5293 Euros (1093 + 4200 = 5293 Euros)

Brand Earnings:
Brand A: -1118 Euro RS and 2400 Euro CPA, resulting in a total of 2400 Euros (because negative RS should not eat into CPA).
Brand B: 199 Euro RS and 900 Euro CPA, totaling 1099 Euros.
Brand C: 672 Euro RS and 750 Euro CPA, totaling 1422 Euros.
Brand D: 1340 Euro RS and 150 Euro CPA, totaling 1490 Euros.

Total Brand Earnings:
The sum of brand earnings: 2400 + 1099 + 1422 + 1490 = 6411 Euros.

Here's the explanation for the difference between the affiliate's total earnings and the sum of brand earnings:

The difference arises because the "Revenue Share" column includes both positive and negative values for all brands, which is why it's showing there a total of 5293 Euros. Total earnings for the affiliate includes here the impact of the negative revenue share from one brand.

On the other hand, the "RS Distribution" column, which should be a correct distribution, doesn't really show the total earnings for the affiliate based on the percentage. Instead, it accurately represents how much each brand has earned by distributing the total revenue share of the affiliate based on positive active customers of that particular affiliate. This column helps ensure that the negative revenue share doesn't affect the CPA earnings.

In summary, the "RS Distribution" column is a more accurate representation of how much each brand has earned without letting negative revenue share impact the CPA earnings. The difference between the affiliate's total and the sum of brand earnings is due to the presence of the negative revenue share, which is redistributed to ensure fair payments while preserving the integrity of CPA earnings.

Key Notes

• The 'RS Distribution' column redistributes negative Revenue Share, preventing it from affecting other earnings in the Total Reward calculation.
• ‘RS Distribution’ column may change daily and impact past dates due to dynamic factors, but actual earnings are based on the snapshot at the end of the payment period. This is a logical outcome since the total revenue share can both increase and decrease within the month. Consequently, it becomes crucial to accurately redistribute the updated amounts across all activities throughout the entire open period. It is related to the dynamic nature of the calculations and how they are influenced by future events, particularly for players who win or lose large sums.
• Due to the universal approach, it may not always be evident with all positive numbers that the distribution model functions universally for all scenarios, yet the calculation remains entirely accurate. This implies that, for instance, when all brands have positive figures, the brand with the most positive customer activities will receive the highest proportion of the total Revenue Share amount. In other words, even if the total NGR for a particular brand is positive but significantly lower than that of other brands, the RS Distribution column will still display the largest share for that brand.
• It is entirely your decision whether you want to regard these distribution figures as applicable to your business and as part of the logic for calculating the brand's profitability and performance. This is precisely why we have a separate column that straightforwardly and simply calculates the revenue share percentage “as is.”
• The "Revenue Share" column and "RS Distribution" will consistently display the same total amount for each affiliate, regardless of the breakdown level you select. The total sum for "SUM of Total Reward" remains constant for the entire affiliate, even if the distribution at each individual level differs between "SUM of Revenue Share" and “SUM of RS Distribution”
• RS Distribution is also the basis for future Independent Deal Calculation (No Bundling) automation; creating a foundation for future functionality, such as the ability to unbundle or separate commissions. This will give our system the flexibility to adapt to changing business needs.

Remember that these figures are intended to provide a transparent and straightforward calculation of revenue share percentages, allowing you to adapt them to your specific business needs.

Further In-Depth Calculations

We have the date range 01 of October - 25 of October, example for one affiliate ID.

1. Calculate the total Revenue Share values for all customers for the entire period from October 1 to October 25.
2. Calculate the total Revenue Share values for all customers who have positive Revenue Share values for the entire period.
3. Define the ratio (coefficient) between the total Revenue Share values for all customers and the total Revenue Share values for all positive customers. This ratio is calculated by dividing the total Revenue Share for all customers by the total Revenue Share for all positive customers. Let's call this ratio K1.
4. For each individual customer with positive total Revenue Share values (RS1), calculate the list of all positive customers with positive Revenue Share values for each activity (RS2).
5. Calculate the second coefficient ratio (K2) by dividing RS1 by RS2.
6. Apply the formula for each positive individual activity in the initial list to determine the Revenue Share Distribution for that activity: RS Distribution = RS * K1 * K2

Where:

RS Distribution is the Revenue Share to be paid for the specific activity.
RS is the Revenue Share value for that activity.
K1 is the first coefficient ratio (the ratio of total Revenue Share for all customers to total Revenue Share for all positive customers).
K2 is the second coefficient ratio (calculated for each individual customer with positive total Revenue Share values).

IMPORTANT NOTE: Currently, we cannot split a particular media item, campaign or reward plan away from the combined company or affiliate statistics. However, if this is required, you can use the Reports and Group By the desired output to see a rounded approximate value at Revenue Share level.