What Is Bundling?
Many affiliates may be losing out on earnings due to a practice some operators use called “bundling”. What is bundling and how does it affect your bottom line as an affiliate?
Bundling is when an affiliate program groups players sent to any of their casinos under one umbrella. Many affiliate programs love to boast a “no negative carry-over” policy, but by surreptitiously bundling players together they are able to have their cake and eat it too since bundling is effectively a form of negative carry-over.
With bundling, the successes of one whale can wipe out all of your earnings across the board. For example, suppose you send 40 players to eight different casino properties all ran by the same affiliate program. These 40 players earn you $8,000 in revenue. Then one whale joins the fray and wins $10,000 in one night. If this casino affiliate program practices bundling, all of your earnings at these eight casinos will be wiped away by the whale.
Ring Fencing Friendly
Advertising for affiliate programs that allow ring fencing can be highly advantageous for affiliates. Ring fencing is when an affiliate program allows you to quarantine whales away from the rest of your players.
Affiliate programs whose terms and conditions clearly state that ring fencing is permitted will allow you to isolate a winning player away from the rest of your players. In the above example, the player who won $10,000 could be quarantined away from your other players. When they play back their big win, that player will be tagged to you once again. In the meantime, you still receive the $8,000 in revenue generated by the other 40 players.
There are a few methods for counteracting the bundling policy of an affiliate program.
First, minimize how much you advertise for an affiliate program that bundles. Most affiliate programs have multiple casinos in their portfolio. Limit how many players you are sending to these various properties since it only takes one whale to wipe out all of these earnings. You may even email an affiliate program that bundles to see if they will permit you to create multiple accounts so you never have too many players bundled together in a single account.
Advertise for affiliate programs that do not bundle players across their network of casinos. Programs that will work with affiliates to allow ring fencing are even better. Check the terms and conditions thoroughly or ask your affiliate manager directly to find out if an affiliate program you are advertising for employs this practice.
ReferBack is one highly-regarded affiliate program with a high earning potential for affiliates since they do not practice bundling.
Get some further perspective on bundling from our forums.