Lifetime Commission vs Recurring Commission

Lifetime commission and recurring commission both pay affiliates beyond the initial conversion, but they operate on fundamentally different mechanics. Lifetime commission creates a permanent link between the affiliate and the referred user — any revenue that user generates, at any point in the future, triggers a commission payment. Recurring commission pays on specific billing events (subscription renewals, challenge repurchases) but may have a defined duration or cap.

The distinction matters most when choosing commission models for different verticals. In iGaming, lifetime RevShare on NGR is the classic lifetime commission: the affiliate earns a percentage of every dollar the player generates, forever. In prop trading, recurring commission on challenge purchases pays the affiliate each time the referred trader buys a new evaluation — a repeat billing event rather than a share of ongoing activity. Forex IB programs with lot-based commission are technically lifetime models since the IB earns on every trade the referred client executes, indefinitely.

For operators, the cost dynamics differ significantly. Lifetime commission creates an ever-growing liability that scales with the referred user base. Recurring commission costs are bounded by churn — once a subscriber stops renewing, the commission stops. Operators building commission structures should model the total cost impact over a 12-36 month horizon, factoring in expected user retention rates, to determine which model aligns with their margin expectations.