Online Gambling Affiliate CPA Deals vs. Revenue Sharing: Which is Best?

Written by:
C Costigan
Published on:
Jan/26/2017

Gaming Entrepreneur Adam Small of AdamSmall.com asks the question which is best for online gambling affiliates: CPA deals vs. revenue sharing?  And while revenue sharing deals may pay handsomely over a period of time, Small explains why they are not always the better option.  In fact, he titles his piece “Revenue Sharing: A Dangerous Proposition”.

In poker, a single high volume player can be worth thousands of dollars each month to their affiliate, Small explains. In the short term there’s little correlation between the work you do and the amount of money you get paid. It feels like free money.

Operators like revenue sharing because, in part at least, because of the free publicity these deals bring. 

Life Time Revenue (LTR) deals allows gambling companies to punt their marketing spend to the future, when they’ll (surely!) be making millions and be able to afford it, Smart notes.

But they eventually catch on.

One day, however, particularly if the operator becomes big, they will realize that the amount they’re spending on affiliate commissions each month is not justified by the value they’re getting from their affiliates. And at this point, they will figure out a way to cut down that number.

And they will.  Nearly all of these companies have clauses in their contracts that allows them to terminate said contract. 

They can also choose to lower commissions, either by reducing the percentage of revenue shared or by otherwise manipulating the final number that is used to calculate commission. In extreme cases, valuable individual players are removed entirely from an affiliate’s account.

CPAs or Costs Per Acquisitions pay a one time fee with a price that can be negotiated to benefit the affiliate.  Loyal and successful affiliates can negotiate the best deals. 

Small writes:

If you’re successful as an affiliate in bringing value to operators, you will quickly be able to negotiate higher CPA’s. The operators will want more of the traffic you’re sending, and you can leverage that traffic into fair market rates. And if the operator doesn’t want to pay you a fair price, they can’t make you work with them.

- Aaron Goldstein, Gambling911.com

Gambling News

Guns, Taxes and Gambling: Florida Legislatures Return to Work

Legislators are expected to pass, or kill, dozens of measures dealing with everything from abortion to gambling and the environment.

Pay Per Head Bookie Outsourcing in the Bronx

Pay Per Head Bookie Outsourcing in the Bronx

It is easy to find a Pay Per Head bookie outsourcing company willing to support the Bronx bookie.   

Professional Gambler Faces Domestic Abuse Charges

Professional Gambler Faces Domestic Abuse Charges

Trial date set for June 20 as gambler faces other charges as well

Live In-Game Online Sports Betting Will Enable You Reach Elite Bookies

Live In-Game Online Sports Betting Will Enable You Reach Elite Bookies

Sports betting as it were is one of the favorite and enjoyable events in the sports world.

Chris Christie Takes Victory Lap Over Atlantic City Takeover

Chris Christie Takes Victory Lap Over Atlantic City Takeover

Gov. Chris Christie is taking a victory lap in Atlantic City, saying his hard-fought takeover of the struggling gambling resort is starting to pay off with projects like a new university campus and a major casino investment.

Syndicate