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Player Lifetime Value and Model Choice

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How to calculate what one player brings over their whole life and after how many months a revenue share beats a one-off payment.

Player Lifetime Value and Model Choice

Lifetime value is what one delivered player brings over their whole life. It is the number that settles the payout-model argument, and the one number you cannot borrow from anyone else.

How to calculate it

Take a cohort: every player delivered in one month. Track income from that group month by month — first, second, third. The sum is the lifetime value over a three-month horizon.

Cohorts matter: measured as total income, new players mask the fact that old ones left long ago.

The crossover point

Compare accumulated revshare with the one-off CPA. The month where the first overtakes the second is your answer. If it arrives in month three, revshare pays — provided you can wait. If it has not arrived in six, your traffic is one-shot; take CPA.

At 1win Partners the CPA ceiling is $250 per player and revshare starts at 50%; your actual numbers depend on geo and quality — see what sets your rate.

What raises lifetime value

A warm source instead of a cold one. An audience that arrived from your own channel or from a discussion stays longer than one that was messaged directly. Hence the difference in approach — on sources.

What lifetime value ignores

Your costs. To get profit, subtract acquisition: accounts, proxies, time. How to count that: fleet cost and what an affiliate actually earns.

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Topic: Traffic

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