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

Online Sports Betting in South Carolina, Illegal But So Too is Working on Sunday

Online Sports Betting in South Carolina, Illegal But So Too is Working on Sunday

Sports betting in South Carolina is considered a misdemeanor in the state while there are no outright laws against Internet gambling

Attorney Who Failed to Kill Handicapper Now Looking for Hit Man to do Job

Attorney Who Failed to Kill Handicapper Now Looking for Hit Man to do Job

An attorney who was jailed after trying to kill a noted sports handicapper is now plotting the handicapper's death from behind bars

Las Vegas Strip Shooting Suspect Faces Four Charges, One for Murder

Las Vegas Strip Shooting Suspect Faces Four Charges, One for Murder

Rolando Cardenas, 55, faces murder and attempted murder charges after police say he opened fire on a double decker bus, killing one man and injuring another.

Gamblers Reveal Which Super Power They Would Use to Gain an Edge

Gamblers Reveal Which Super Power They Would Use to Gain an Edge

When it comes to gambling, if you possessed the ability to read a dealer’s mind or see through a deck of cards—would you use the power to win big?

Las Vegas Strip Shooter Identified as 55-Year-Old Rolando Cardenas

Las Vegas Strip Shooter Identified as 55-Year-Old Rolando Cardenas

A 55-year-old man has been identified as the lone shooter on the busy Las Vegas Strip Saturday night. 

Syndicate