If you’ve already taken the leap to start an online affiliate business, you’ll know all too well that generating stable revenues from your website or websites is easier said than done. Earnings can be tremendously volatile and depend on several factors such as how well your site is ranking month on month to whether there is a lack of major sporting events.
That is why affiliates often work to different commercial agreements so that they can ensure a steadier income. This often means combining cost per acquisition deals with revenue share agreements and other ways of generating income from their websites and audiences.
Below, we take a closer look at recurring commissions…
What Is a Recurring Affiliate?
A recurring affiliate is a revenue share deal where you receive a percentage of the revenue a player you referred generates at the sportsbook or casino. This is often set for their lifetime at that site. This means you will continue to earn from this player long after you have referred them to that brand, so long as they keep wagering there.
You will typically sign a contract with a recurring affiliate program that states the percentage of the player’s revenue you receive so this is something you will want to discuss with the affiliate manager in the early stages of your negotiations.
Where Are Recurring Affiliate Program Commissions Popular?
Recurring affiliate programs are more popular in certain jurisdictions than in others. They are especially popular in Europe and markets such as the UK, but less so in the US where a lot of state regulations require affiliates to apply for a more complex (and expensive) license if they wish to work to this commission model.
Outside of the US, recurring affiliate programs often allow affiliates to combine CPA with revenue share in what is known as a hybrid deal. This offers the best of both – a one-off payment for sending the player and then a recurring income from that player over time.
Which Niches Have the Best Recurring Affiliate Programs?
If you’re starting an affiliate business, making money is going to be one of the top priorities. As such, you’ve probably put a lot of thought into finding the most profitable iGaming niche – and naturally, you’ll also think likewise about the affiliate programs you choose.
The reality is that no niche has the default “best” or “most profitable” affiliate programs. Even in lucrative verticals, you will still have to put in a significant amount of effort to succeed in the long run. If you don’t, you will fail – regardless of how much money is in the niche in general.
Why Recurring Commissions Are Important
Now that you know a little more about recurring affiliate programs, and where you can find them, let’s look at some of the key reasons why they’re important. Below are the top two reasons you should consider partnering with recurring affiliate programs.
Stability of Income
If you ask any business owner, they will tell you that cash flow is one of the most important factors when it comes to having a sustainable company.
CPA partnerships certainly have their upsides, but you might want to consider other options if you haven’t yet built up a significant level of traffic. Recurring affiliate programs will continue bringing money into your business as long as the player continues depositing and playing with that operator.
Building a Long-Term Relationship
If you want to succeed in any field, you must build solid relationships. And let’s face it – most companies do not want to work with affiliates looking for nothing other than a quick buck. The best relationships are built on a mutual desire to help each other achieve their long-term goals.
When you sign up for a recurring affiliate program, you’ve got more time to build a long-lasting and fruitful partnership with that operator. As a result, your industry reputation will improve as somebody who’s easy to work with and somebody that is committed to the cause.
Signing Up to Recurring Commission Affiliate Programs Is an Excellent Way to Grow Your Business in a Sustainable Manner
You will find plenty of affiliate programs out there, but having a steady income is one of the most important factors to build into your business plan as an affiliate. In many instances, recurring affiliate programs can help you achieve this.
But remember, it’s up to you to work with the operator to ensure that those players continue depositing with them in the long run.
Are you looking for a recurring commission deal? CAP can help; sign up today.