Economics · 12

What prediction market referral programs actually pay.

If you send people to a prediction market, you've probably been offered a percentage of the fees they generate. It's a fair offer. It's also structured in a way that most people don't read closely — and the clause that matters isn't the percentage.

Below are the published terms, quoted rather than paraphrased, and an honest account of when a referral commission is the right deal for you and when you've outgrown it.

Polymarket · published terms

The headline rate, and the three conditions on it.

Polymarket runs the largest referral program in the category, and publishes its terms openly — which is more than most. These figures are from those terms, effective 28 May 2026.

Direct referral
10%
of net trading fees from someone you refer
Indirect referral
5%
of net trading fees from someone your referral refers
Before you earn anything
$10,000
lifetime trading volume required of you, personally
Read the base carefully
The percentage is of net trading fees — what the exchange keeps after the referred user's own rebate tier. A high-volume trader, the kind you most want to refer, earns a bigger rebate and therefore leaves a smaller net fee for your percentage to apply to.
The clause that decides it

Your earnings on a referral stop after 30 days.

Under the published terms, rewards on a referral end at whichever comes first: the referral reaching the Platinum tier, or 30 days from their sign-up.

Read that twice, because it inverts the usual logic of audience work. You are not building an annuity on the users you introduce. You are earning a month of fees, once, per person — and the better a trader they turn out to be, the sooner they hit the tier that ends your payments early.

What this rewards

Volume of introductions.

A time-boxed reward pays best when you can keep introducing new people indefinitely. It suits a large, refreshing audience — and it treats the loyal community you spent years building exactly the same as a stranger who clicked once.

What it doesn't reward

Retention. The thing you're actually good at.

If your members are still trading in year two because of your calls, your community and your reputation — the programme has nothing to pay you for that. The value you created keeps accruing to someone else.

To be fair about it
These are sensible terms for a user-to-user referral programme, and Polymarket publishes them plainly instead of burying them. The point isn't that the deal is bad. It's that it was designed for users introducing friends — not for someone whose whole business is an audience.
The other structure

Earning a commission, or owning the fee.

There is a second way to be paid by a prediction market, and it's the one the exchanges themselves built for applications rather than for individuals: you route the trades, and you charge on them.

Referring

A commission on someone else's customer

  • A published percentage, set by them and changeable by them
  • Time-boxed — 30 days per referral, under current terms
  • Gated behind your own $10,000 lifetime volume
  • The user belongs to the platform; you can't contact them again
  • Your brand appears nowhere. You are a link
Operating

A fee on trades you route

  • You set the rate — on Predicted, typically 1% to 5%
  • No expiry. It applies for as long as they keep trading
  • No personal volume requirement to start earning
  • They are your members, on your platform, under your name
  • Settled on-chain to your wallet as trades happen

This is not a loophole we invented. Polymarket's Builder Program exists precisely so that applications routing orders to the book can charge a builder fee on that flow, additive to the platform's own fees, with no expiry attached to it. Predicted is one of those applications — and a franchise makes you one too, under your own brand, without writing any of the software.

Straight advice

Referring is the right call more often than we'd like to admit.

Stay an affiliate if

You're testing whether the audience bites.

A referral link costs you nothing and answers the only question that matters: will your people actually trade? Run that experiment first. If nobody clicks, a branded platform of your own would have been an expensive way to learn the same thing.

Stay an affiliate if

You don't want a brand in this category.

Operating means your name is on it. Some people reasonably don't want that association, or don't want the responsibility of being the face when a market resolves badly. A link keeps you at arm's length. That's a legitimate choice.

Consider operating if

Your referrals keep trading long after you stop being paid.

This is the clearest signal there is. If the people you send are still active months later, you are producing durable value and collecting one month of it. That gap is the entire argument for owning the platform instead.

Consider operating if

You already sell something to this audience.

Picks, a paid channel, a newsletter, a community. You give the call; they back it on a platform carrying your name; you earn on both. One audience, two revenue lines, no extra acquisition cost.

If you do operate

What you take on — and what you don't.

Owning the fee doesn't mean owning a bookmaker. You take on a brand and an audience. You do not take on market risk, custody of anyone's money, or the job of deciding what happened.

You do

Bring the members.

This is the whole job, and nobody can do it for you. No platform in this category manufactures demand for its operators — anyone who tells you otherwise is selling.

You do

Set your own fee.

Typically 1% to 5%, chosen during onboarding, charged on every prediction placed on your platform and settled to your wallet automatically.

You do

Carry your own jurisdiction.

Predicted does not issue you a licence and does not pretend to. Where you operate and what that requires of you is yours to take advice on, before you launch.

You don't

Take the other side.

Members trade against other members on Polymarket's book. When one of them wins big, it doesn't come out of your pocket — your fee is the same either way.

You don't

Hold anyone's money.

Funds stay in members' own wallets and winnings go straight to the winner. You are never a custodian, and there is nothing for you to reconcile.

You don't

Build or run software.

The platform, the wallets, the market data, the settlement and the payouts are ours to operate. You get a branded front door to it.

In one line
A referral programme pays you for a month, once, per person. A fee on your own platform pays you for as long as they keep trading. If your audience sticks around, you are being paid for the wrong part of what you do.