As from the 01 July 2004, the new poker model will be a three tiered commission structure set at 25%, 30% and 35% as indicated in the table below.
This will be coupled with a player sign up offer, positioned to be VERY competitive in the market. The offer must be designed in a way where the affiliate DOES NOT get penalized upfront heavily for the incentive given to players. In other words, the player has to do something (which earns you and our client’s money) before the player is incentivised. This will naturally place the affiliate in positive commissions right off the bat.
The affiliate commission will be calculated as illustrated below:
25% $0 – $5000 Less than or equal to 10
30% $5001 – $20 000 11 to 15
35% $20 001 + 16 +
A few notes on the revised affiliate poker model:
-Poker Commissions and Casino commissions will be continued to be calculated independently of each other.
-The Poker commission will be calculated as illustrated above and then added to the Casino commission.
-Because the CPA was having a negative impact on the affiliate and poker rooms, it has now been removed from future calculations.
-The “number of new actives” requirement will remain as it encourages player volume which falls in line with the overall business model
That’s the email I just got from my manager at Referback. Doesn’t seem like an improvement to me AT ALL…
Instead of 25-40% commission, you can only get 25-35% commission.
More importantly, they eliminated the CPA clawback. They say the clawback was “hurting” affiliates, but I can’t see how that could be the case. Originally affiliates would get up to $50-150 “up front” as the players played more raked hands, and this clawback would be deducted out of future commissions. So in essence the affiliate would simply get $150 of his future commissions immediately, which is very helpful. Now there is no money up front.
So again, it seems that their new policy, which they’re introducing as if it’s a great thing for affiliates, is purely worse for affiliates.
Let’s just say I’m not entirely pleased.