or do you prefer to continue as an affiliate?
there are some gaming providers that provide outsourced support and billing so all you have to do is marketing which is what you do best since you are an affiliate
you get to travel to super nice places once in a while
but think of this if you have your own casino you can recruit an army of affiliates who will do the work for you and you get a HUGE percentage
I think you may be oversimplifying things.
If you are going to have a PROPER casino, using any of the software noted in your post, you are going to have to come up with some big cash just to get your foot in the door with the software providers.
Again, if you are going to have a PROPER casino, you will have to license in a jurisdiction that will protect both the players and the casino. This will cost you bundles.
Affiliate advertising will not be enough to keep you going. You will have to arm yourself with a reasonable marketing plan–this will require media buys, which are by no means an inexpensive proposition.
You will have additional expenses, as well–staff, P.R., cash processing, banking, etc.
Further, money does not simply “roll in” to the casinos. It takes a long time for a casino to become financially successful. If you think you’re going to be sitting back and counting your moolah, think again.
Getting past all that I’ve already mentioned, with the industry consolidating constantly, the chance of really making big money amongst the big casino groups is going to be difficult, at best. Launching a new casino is not as easy as it used to be.
These are just a handful of negatives towards opening a casino.
While I’m not an affiliate, I can honestly say if my options were owning a casino or being an affiliate, I’d take being an affiliate without even giving more than a minute’s consideration.
If an affiliate program is run successfully, working closely with the right partners/websites and not accepting every man and his dog as affiliates, and targeting the right market, and with COMPETENT support and staff, I believe affiliate advertising can be more than enough to make a casino successful.
But like I said, I agree with every other point – especially the last one.
Great post, greedygirl. Right on the button.
Not that its easy to run a successful affiliate or media buy site. But you can stagger your expenses according to income as you grow.
Owning a Casino is a very expensive proposition, it takes a long time to become profitable, and with all the consolidation happening today it will become increasingly difficult to compete with the giants.
Add to this the possibility that online gambling is legalized in the US, opening the industry up for Harrahs, MGM and the rest of the “real” casinos. You could spend years getting up to a profitable level only to have that happen and all of the big guys will dominate the industry by snatching up the players, or at least squeezing the margins for the online casino groups through bonuses and other promotions.
If an affiliate program is run successfully, working closely with the right partners/websites and not accepting every man and his dog as affiliates, and targeting the right market, and with COMPETENT support and staff, I believe affiliate advertising can be more than enough to make a casino successful
I don’t necessarily disagree with this statement, once a casino has had a successful launch and has become known. The odds of getting the necessary volume of aff’s to carry an unknown, unproven brand to create a successful new casino straight away, is what I have my doubts about. My feeling is that in order to launch a new, unproven brand successfully, it would require outside media buys.
And Webber, I absolutely agree with you, particularly where the big landbased guys are concerned. When the day comes that US landbased finally gets the green light, this entire industry will have to re-group and re-think the way things are being done. My instincts tell me that only the biggest, oldest and most reputable groups will be able to survive against the landbased operators–and this is only because they’ll have the funds to be somewhat competitive.
I think they will need the funds to undergo some strict tests and meet regulations and pay hefty licence fees. I also think that casinos that have undergone tests such as eCOGRA demands will stand a much better chance.
Also, the software companies will have to be heavily involved here.
But I also think that there will always be “rogue” casinos online. They will snare surfers with all kinds of large bonus offers the others may not be able to match due to a lot of levied fees.
It will be very interesting to watch, and I am quite convinced that it will happen. The US could literally balance their budget this way.
instead of being an affiliate
thanks for your posts
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