And of course non cash flows can be manipulated (legally).
I’m not sure if it really is based on profit, but even if it’s based on Cash Flow, than there’s still a disadvantage, as cash flow = gross revenue – bonus costs etcetere – operational costs (hiring staff, …)
The operational costs aren’t in the calculation with rev share of course. But again, I can be wrong here?
B]3[/B]. Calculated on net revenue instead of cash flow/profit.We really have no idea if RA is allocating any fraction of operating expenses to individual affiliates, but reading through the program description on the RA website it does not appear that they’re using anything other than gross revenue in their calculations. Still we can’t really be 100% certain how RA is arriving at their margin figures.
That said, even if their calculations are completely accurate, that doesn’t change the fact that for the reasons already stated their 35% “wager” model is substantially worse than a 35% bundle and carryover free rev share model.