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Prof is right
I am pretty sure more then one program do have predetermined commision ranges …. And yes there is atleast one for sure, but again there have been a few that are really bad. Not pointing fingers here but the real point is that it happens!
Nobody knows the troubles I have seen hahaha … I honestly feel it is the nature of the beast with affiliate programs in general. No matter what the industry, the company, etc …
Shaving just happens, that is a fact I am very well educated on this and know that no matter what, some one will do it when given the chance. Even when you have a brick and mortar store employees steal on a regular basis. Usually it is the one that you would least expect to top it off.
Agreed this isnt about pointing fingers – on the contrary its about discussing an on-going trend …
And I also agree this happens in all facets of life. Heck just tonight at red lobster after giving the waitress the payment binder she returned 10 minutes later and 57 cent short …
LMAO
I know who the program is that the Professor is referring to and although it is unusual for one program to come to another’s aid, let me say that I would be very, very surprised if they were doing this.
I would be interested to hear how long the affiliates in question have tried removing the casinos in question for. By the sounds of things it is larger affiliates that are concerned, so for arguments sake lets say that each of these affiliates have 1500 players (since day 1). Of these players lets say that 200 are active every month. So even if you stop sending players you will have approximately 200 hardcore players playing every month for at least the next couple of months. Over time the monthly player count will dwindle but with such a large base they will last a considerable time. I would imagine you would have to completely stop sending any players to these casinos for at least 4 to 6 months before you saw a considerable drop in revenues.
Having so many players playing from month to month also means that big wins get ironed out of the total net revenue to some degree, simply because of the large amounts being deposited.
Also casino revenues will generally follow the 80/20 rule whereby 80% of the revenue comes from 20% of the players. Most of the players that an affiliate send from day to day will be the churn – the average couple of hundred bucks a month player. They don’t really make anybody much money so the main changes in revenue come when an affiliate delivers a whale. Whales generally have very long life times as players and generate such large sums of revenue that the day to day churn don’t make much difference to revenue in comparisson. If you only stop sending players for 3 to 4 weeks it is likely that it is only churn players that have not been sent – hence revenues don’t change much.
The affiliate/casino relationship is based on trust and it is up to the affiliate managers to keep the relationship going. Without keeping affiliates informed then completely innocent situations can look suspect. For instance – big winners at the end of the month. Many affiliates complain about this but it DOES happen, not very much I grant you but it does happen from time to time. There is nothing the casino can do to stop this.
Obviously I can only speak for myself and how the team at WagerShare run the affiliate program. However, as I mentioned at the beginning of my post, I would be very surprised if this affiliate program was doing something so short-sighted as it can only be a self-destructive policy in the long-run.
Sorry about the long post – a bit more than 2c worth, better call it a dollar!
Best regards
Tim Whyles
Thanks for the excellent input Tim. These factors certainly must be weighed when looking at the big picture. I also agree with several of the points you raised.
The main thing that raised red or at least yellow flags was the apparent uniformity across the board among a group of webmasters.
When this appears to be “too” uniform, in what should be a baiscally random system, it catchs people’s attention, hence this and private discussions.
Originally posted by Professor
The main thing that raised red or at least yellow flags was the apparent uniformity across the board among a group of webmasters.When this appears to be “too” uniform, in what should be a baiscally random system, it catchs people’s attention, hence this and private discussions.
Hi Prof, I agree – that’s why I made my point about the managers keeping the relationship up. For instance, I will often give an affiliate much more information about their players (without giving personal details obviously) than they can get from their online stats. By keeping affiliates informed about their players, they understand reasons for certain shifts (or lack of) in their revenues.
I agree that you should be talking with each other because if the affiliate program is doing anything untoward then it will help you catch them out.
Assuming that the affiliate program isn’t up to anything it shouldn’t be then I can’t help but feel that this situation could have been avoided by the aff managers doing their job properly.
Cheers
Tim
Tim,
a point I think you missed on the affiliate aff side which i do not often take …
The fact that when you drop a aff program some of the programs more on the ball get the casino team together and start comping old reliable and loyal players a bit more to get them playing again which in turn relates to those returning and recurring profits coming back on board resulting in big months again.
Though as a knife to this lack of many decent or large players or whales in the same circumstances. Otherwise either the shaving of the whales or lack of pleasing the whales which tends to make the stats look shaved to say the least. Though this pleasing and comping must be done in order for the affiliate managers to look good and a lack of that in the team is a rift in management.
Plus when this is done and we take a hit for constant free money being doled out we as the aff’s still take a hit though we spent our cash to bring in the players while the casinos still retain these players and benefit from the players referals and we do not get as much of the game. Some whales do swim in packs !!! Plus some casino software works differently as to creditation of all the above stated.
Tim thanks for your excellent post.
:rolleyes:
