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Reply To: business plan

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#650672
vladcizsol
Member

Fergie I generally agree….. BUT dont get too thin on partners or you can end up getting burned really bad if one or more groups go south.

For my first three years I sent all my traffic to four casino groups and was earning a huge amount of money. Then I lost one as they claimed I had a whale that kept winning $100k or more per month and was wiping out all my commissions from my other players with them. Since they carried forward negatives within a few months I was over a million dollars in the hole and had to accept that this partner was dead as an income stream. That was approximately $15-20K per month lost income! Almost overnight!!

Then if that wasn’t enough a second major partner switched software and in two months time THEIR commissions dropped by over 80%!!!

So in less then three months I saw 50% of my income evaporate. I had built huge player bases with these two groups and now that was basically lost.

Ok, so at least I had the other two….. Well, around that time Credit Card rejections started to soar and Paypal dropped online gambling….

Another big hit to income. I was now earning 1/10th of what I did just six months earlier!

I immediately scrambled to add on new partners and decided to never put all my eggs in so few baskets. Over the course of a year that strategy proved successful as I built up revenues at more then 10 new partners. I was once again doing brisk business and when one or two or even three of my partners have a bad month I dont worry about it.

So yes its extremely important to send traffic only to partners that produce, but its also important to maintain a wide enough base to ensure stability.