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Deductions would be a good topic to open up and discuss.
I mean that rather than lowering rev shares or finding other ways to cut costs, some affiliate programs appear to be increasing the deductions.
Some add blanket xx % deductions to gross revenues before applying the % share to affiliates, often rates that are hard to justify.
ie. a uk sportsbook may apply xx % to all revenues, claiming that this covers tax, levees, bonuses etc. But shouldnt the calculation actually be correct, rather than a blanket charge. Especially when the same charge can be applied to sports without levees or even games and casino where some of these taxes dont apply or are rated differently.
The flip side is programs which arent making the deductions correctly and you think you are earning good revenues, they think the program is profitable, but if they make the correct deductions it wont be. We have had situations like this recently where we were making good money and then the program realised they werent deducting the correct taxes, another realised they werent deducting free bet costs when they thought they were. So these programs werent actually as good as we thought they were and we wouldnt have sent as many players had we known.
The whole point im getting at, is transparency of deductions. How many of us know EXACTLY what is deducted and at what rates from each of the programs we work with before our % rev share is applied.
Note taken on the topic, I am currently mediating a resolution with a very similar subject line. I think the bigger issue is Terms and Conditions being completely spelled out and having those T&C’s match your affiliate reporting at all time. Transparency on all thing in terms of Affiliate Reporting / Commission is a must.
Thank you again for the feedback.
