Let’s say I’m interested in buying all of your affiliate websites. I get in touch with you and ask you what you want for everything. You tell me $20.
I tell you that I really don’t feel like paying that much, that I’ll pay you $5 instead, and if you refuse, I’ll launch a DOS attack on all of your websites and render them useless.
You refuse.
I shut your websites down for a week. You threaten to sue me. I laugh. Your websites are down for another week. You try every means to continue to operate your business but you can’t. You still make money but you’re not acquiring any new players so your long term prospects are bleak, and getting bleaker.
I contact you again and offer $3 this time. You agree, but with the stipulation that you get 20% of the recurring revenue from all of the players you’ve already acquired.
I laugh in your face. Your websites continue to stay dark. After another month or so I again offer you $3 for everything, you finally give in, and agree.
This is obviously a loaded, completely hypothetical scenario, but it’s not hard to find parallels. Empire isn’t at fault here. They were never in a position to negotiate anything, on either their behalf or on behalf of their affiliates. They got kneecapped and salvaged what they could.
From a cut-throat business perspective, I admire what Party has done. They’re using their bulk to maximum effect. They’re vigorously attacking and eliminating costs from their business structure, first going after licensees and then affiliates. They needed both licensees and affiliates to grow, in the early stages, but now they’re a drag on profits.
I’m not even saying that people shouldn’t be an affiilate of PartyGaming. Plenty of people are currently making beaucoup dollars, doing just that, and likely will for quite awhile.
All I’m saying is that if you do so, abandon all hope that they have the interests of affiliates in mind. Because they don’t. At all. You should be prepared for any dollar you make through their program to disappear tomorrow, with no warning, because it very well could.