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First of all, as a relatively new member, I find this website extremely informative. Kudos to the authors…..
Now, I’d like to start a little rumbling here in the forum, with an age-old question (I’m sure):
Q: As an Affiliate, are you better off using a CPA or Revenue model ?
My theory, perhaps naive, is that a CPA model is better for Affiliates. The main reasoning behind this, is my assumption that gamblers in general, tend to be impetuous people by nature. They will move from site to site, looking for that Golden Nugget continuously. Fail at one site, move on to the next. As an Affiliate, if you can capture a CPA commission here and there, and perhaps multiple times for the same player, I would think that you have a chance of doing better overall, unless you miss out on the Big Whale, which doesn’t happen all that often ! Additionally, although many of the affiliate programs are ethical, what true guarantee do you have, that a vendor will continue to “pay you for the lifetime duration of the participant” (of course, the same argument can be made against the CPA model) ? You are really subject to the ethical behavior of the vendor, and the robustness of its tracking system, regardless of the model employed. I vote CPA model ! I’m probably in the minority here, but I’m willing to take a jab or 2 here !
All comments and counter-points will be very much appreciated !
Revenue share is better.
With a CPA deal, one party always loses. If you refer a decent player to the casino, you’ll get $200 (or whatever the referral fee is), and the casino will make thousands of dollars. In this case, you lose.
If you send bonus hunters or unprofitable “low-rollers” to the casino, the affiliate program loses. And if this happens — if the aff company isn’t making a profit — they’ll probably close your CPA account. Check out the 888.com area on this forum, and you’ll see many examples of this happening.
my assumption that gamblers in general, tend to be impetuous people by nature. They will move from site to site, looking for that Golden Nugget continuously.
In my experience, this isn’t “necessarily” the case — it depends on the casino, and on the type of players you refer. Some casinos have great player retention; other don’t. Some affiliates refer bonus hunters, and others refer serious players and high rollers.
In my case, I would have been a fool to go with any sort of CPA deal…. I’ve made a lot more on revenue share than I would have on CPA. I don’t know exactly how much, but I would guess that (in my case) the revenue share has been over 10 times as profitable as the CPA would have been. (Again, that’s a rough estimate).
what true guarantee do you have, that a vendor will continue to “pay you for the lifetime duration of the participant”
When you sign up with a program, you agree to a set of Terms and Conditions. This is a legal binding contract, and it does mean something. If the aff program tries to break the contract, or if they try to change the T&Cs retroactively, you can take legal action, or at the very least, you can raise a big stink in a public forum.
So… that’s what I think. Revenue share all the way.
Dave answered that one so well I have nothing to add. Well Done! I completely agree.
:cheers: :cheers:My 2 cents is :
Casino : Rev share
Poker : Rev Share on “main” sites, and CPA on sites that are less likely to be your player’s long term bread and butter or the ones that are higher than average. 100$/player average takes a long time so the money is better in your pocket as you can use it now.Thank you for all your usefull coments. I have personally had some real good success with Poker CPA, but my casino site is still in the Sand Box, so I have been unable to test the viability of CPA vs. Rev model.
Thanks again !
Yep, Dave said it all.
I will disagree with one thing that Dave said – taking legal action against an online gaming company from within the U.S., based on violation of T&C, will hold no water. Perhaps in other parts of the world, but definitely not the U.S. To that end, I think that U.S.-based affiliates are at a distinct disadvantage.
Legal action is always taken in the country specified in the T&Cs of the program.
It’s a small world….
But legal action should not be necessary.
I tend to be a little bit contrarian about the whole CPA vs. rev-share issue. As long as you and the program you’re signing up with agree on the details, then there’s absolutely nothing wrong with a CPA deal.
UNLESS someone decides to not honor their end of the deal by sending fraudulent players or by refusing to pay CPA’s that are owed.
You might argue that those issues don’t come up with rev share deals, but the fact is, there has to be a certain amount of trust involved with any affiliate partner because THEY are the ones providing you with the stats on your revenue.
If you’re dealing with someone dishonest, they’ll find a way to cheat you no matter what business plan you choose.
I’ve personally never had a problem with any of the CPA deals I’m involved with.
