Hi Lucas,
With all the deductions it takes to operate an online casino, I find it hard to grasp how a new casino brand could sustain giving a 60% rev share for an extended period of time and remain viable. Especially when one factors in, large MGS groups who are showing signs of hard times, even though they pay less MGS fees, and have enormous player bases. These Groups cant offer open-ended 60% rev share, even though they’ve been around for years and years. Yet VideoSlots can.
With all dues respect the numbers don’t crunch.
6.4.3 Calculation and Payment
videoslots.com/terms-and-conditions/
Your Revenue Share is calculated from the casino’s earnings of Your referred players minus Our Microgaming fee, casino bonuses, jackpot fees and chargebacks.
No other MGS casino (that I’m aware of except for VideoSlots.com and Emu), passes the MGS fee onto its affiliate partners. Worse, there is no mention of:
- % value or dollar amount in relation to YOUR MGS fee.
For all anyone knows, it could be as much as 20% of Gross Revenue. Which would certainly tell ppl how you can afford to offer such a high commission % rate.
Given the owner of VideoSlots (Alexander) was once a gaming affiliate, he’s no stranger to how affiliate rev share is calculated. But so we’re all on the same page, other MGS aff programs use the following formula to work out commission:
Gross Revenue minus Bonuses minus Jackpot Fees minus Chargebacks = Net Revenue.
Affiliate commission is then calculated on the final Net Revenue.
Reiterating, given the owner is no green-horn/newbie, why would Panda Media expect affiliates, who have no stake (or ownership) in the company/casino to wear your MGS Fees. Which frankly are costs directly associated with operating your company. Nothing to do with your affiliate partners.
On this quasi logic, your affiliate program should pay a % of your affiliates operating costs!
One last question.
Included in clause 6.4.3 is, We reserve the right to change such Affiliate Commission Structure at any time without notice.
That’s very vague. Does this mean you have the right to retroactively change commission structure?
Cheers
Dave
PS Not that I saw it in the affiliate T&C’s but if VideoSlots aff program also includes a negative carry over as part of this extended 60% rev share deal, then your true commission % takes yet another dive.