Hi magician,
Let’s work through those examples and I’ll help you understand.
User Deposits: $10,000
Since the games have different margins and I want to be precise, let’s use Slots as the example.
Margin & Payout Table:
Margin: 3.71%
Payout: 1.30%
The average amount of times that the $10,000 deposit would normally be wagered:
$269,541.78
The amount of wager in your example: $30,000
Keep in mind that the $269,541.78 is based on the margins posted on the PWC Reports for 2005. [Calc: 10000/.0371] So this is fact … not our opinion or interpretation.
As we can see the amount wagered in your example is well below the actual average. Does that mean it can’t happen? Of course not, the fact is it is possible. However, by the very nature of an average we also know that the opposite is possible … makes sense right? Think about it: $30k in wagering on $10k deposit is a 33% Margin! Oh if only!!! 
We’d all be rich! However, in reality nobody would bother playing those games!
The reason online casinos can brag about ‘better than vegas odds’ is because we really have them. Remember the actual margin is: 3.71% on Slots. So this situation has to balance itself out … We know we end up at that 3.71% margin again … and we have one situation at very high margin of 33%, well then we know we need to have another situation at a very low margin, to balance it out. We know this because the PWC Reports say so.
So what’s the opposite? What balances out the average from the possible scenario above? Winners, of course. It’s equally likely that a player wins during their play and keeps playing and playing and playing.
Instead of zeroing out or counting against your earnings like on the RevShare model, the more that player wins and plays the more money you make. … and… AND! Since you can’t go backwards when a winner wins … you have a reduced risk. Here we are, back at predictable, reliable earnings that won’t get slammed at the end of a month when somebody wins.
[This is why on an annual basis you should make more money. Each month should work out to about the same amount of money as the RevShare (make sense? You’re making 35% of the Margin, which is our profit … so your still getting 35% of the profit), but without the risk of getting zero’d out by a winner.]
Ok, keeping this understanding in mind, consider the second example in the post … the one from our screenshots …
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Just so we’re all on the same page you can find this example by doing:
1. Goto: xhttp://www.rewardsaffiliates.com/main/wagering-intro.asp
2. Search for or scroll to ‘Monthly Report’. Approx 42.5% down the page.
3. Data is located on the 1st day/row of the month/chart: ’03/01/2006′
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… to quote ‘magician’:
“As in the example Monthly Report 03/01/2006 if the total wagered was $515,747.26 which is over half a million dollars I would make $5,933.32?”
If you’re used to the RevShare model, like most of us are, we’re used to the value of these two numbers being much closer together. That means if I saw $5,933.32 in the ‘affiliate earnings’ column, then I’d expect to see: 5933.32 [daily commission] / .35 [35% RevShare percentage] = $16,952.34 in the profit to casino column … not $515,747.26. Hang on a second, aren’t I getting ripped off here?
No. Why? Now the amount in that column represents wagering and the wagering is: $515,747.26. So if we wanted to get an idea of how much that would’ve been in the RevShare concept: 515747.26 [amount wagered] * 0.0371 [the 3.71% margin] = $19,134.22 Deposited & Lost.
Alright, we can all see that the $19k is more than the $16k we estimated above. Why is that? Well, I actually used the Slots margin for that calculation. If you look at the example, it’s the total for the first day of the month. So that total is the combination of all the different casinos and more importantly all the different game types (video poker, table, blackjack & slots) – which have different margins (all lower than Slots) – so using the slots margin gave us a close estimate but understandably not the actual amount of money lost.
Since the margins for those other game types are lower, it makes sense that more money would need to have been deposited in order to get the same commission. Hence the $19k is greater than $16k.
If, however, all the players at all the casinos would have only played slots on that day, we would have been extremely close to the $16k that we predicted.
Wow, I never thought I’d be spending my Friday nights like this when I signed up for this job … thank heyzeus Amsterdam is coming up :rasta: