I don’t agree with bundling and never will. I as an affiliate will not allow myself to be put into a position where my income from 7 properties is negated by one lucky winner at the 8 property. That’s just not real smart on my part for the simple fact that most programs don’t bundle, and I am going with the current market. I think of my traffic like a product I am selling, and it’s silly for me to sell to the bidder who tells me I am going to lose the revenue on all of the products I sold, because one was a loser or malfunctioned.
When I first got in this business, I didn’t even know what bundling meant. Then I learned most programs did not bundle, while a few did. Naturally I chose to work with the casinos that didn’t bundle my earnings. It was a market and I was going to buy into the programs that paid me the most for my efforts. Sure, once in a while the casino will break even on my action for the month because they do not bundle, meaning if I had one big $20K winner, and the rest of my players lost about $20K, then the program broke even one month. They might even take a small loss that month, big deal—thats why they make the big bucks every other month. Point being the once in a blue moon I have a big winner, and it is extremely rare, shit I hardly ever even have a cash out on the casino side of things, I don’t exactly feel bad that the casino did not make money and I did. That’s why they are making 70% every other month while I am only making 30%, yet I am the one who brought the money in the door. Without me they make 70% of ZERO. We all know that there are far more people that cashout in sports betting than in casinos. And if the casinos have a big winner, alot of the times it is on a progressive which the software provider pays anyway, so they really have a pretty sporty deal going. Don’t you ever wonder why there is never any talk about the percentage of money brought into the casino compared to the money going out. I bet it’s less than 5%.
But putting all that crap aside, I look at a lot of things like a simple equation. And the question the program needs to bear in mind, is this “Is this move to bundle affiliate earnings going to be a profit center for us?” I think we can agree that is why they chose to now bundle affiliate earnings, to put more money in their pocket correct? And I am not so sure this will in fact be a profit center for them. Newton told us for every action there is an equal and opposite reaction, so let’s take a quick look at what the action and reaction is here.
Action = Vegas Affiliates is now bundling earnings for all 8 casino properties
Reaction = Affiliates drop 7 out of their 8 properties as not to put themselves in a situation to lose all earnings from other properties because of one big winner. That’s just the fact of it, this is what affiliates are going to do, there is no question about it.
So let’s assume an average affiliate was bringing in 5 new depositors to each of the 8 casinos a month. That’s 40 players a month, and because of the reaction this will have with affiliates, this 40 number will turn into 5 new depositors, 1/8 of the previous amount of players because they are down to promoting only 1 casino instead of all 8. In short, the program just lost 7/8th of their action with affiliates.
So the million dollar question is simple, Is the amount of money saved by this new bundling going to exceed the 7/8th lost revenue from affiliates. Are they willing to trade this bundling move for 1/8th of the previous action? You tell me if that is a good business decision. They can’t bring more players in the door without affiliates, and they picked a hell of a time to give affiliates a reason to get a bad taste I their mouths.
Once in a blue moon there is a big winner, and I feel the guy making 70% every month should eat this loss, instead of taking it all out of my 30% which is exactly what happens when they bundle. Of course, that is assuming that the rest of my players made up for the losses by the big winner, which to me is the most likely scenario, because I bring in more than just a few players a month, and frankly most everyone loses.