Casino and sportsbook affiliate marketing can be confusing to begin with, because of all the acronyms. To add to the confusion there is no consistency with some of the terminology. For example, net win on some sites might be after all charges and on others it might be before charges such as royalties and merchant fees. Therefore, as mentioned in other areas, make sure you read the terms and conditions. That 40% starting percentage might not appear as good once you subtract all the charges.
So let’s start explaining a few things –
COST PER ACQUISITION or CPA means you are paid a set amount for every player that you refer from your site. This amount can vary depending on the casino or sportsbook, the number of referrals (on a sliding scale) and the person you deal with. Yes that’s right, on many occasions I have been offered one amount by one person and another amount by another person. The lesson I learned was not to accept the first offer and treat it like any other negotiation. It doesn’t hurt to try does it? Payments tend to be in the range $10 to $150. A player may also need to deposit a minimum amount before you are paid, however if they win or lose you will be paid.
COST PER LEAD or CPL is a payment method whereby you are paid for some-one who you refer and completes somthing like an email form or downloads the software. This method is rare nowadays and once you see how many people download the casino software and never make a deposit you will see why. Payments under $5 can be expected and it’s much better to negotiate a deal using another method because it will be better in the long run.
COST PER CLICK or CPC is fairly self explanatory and means you will be paid for every visitor that clicks on a referral link to their site. Was popular in the early days of the internet and just one of the ways many dotcoms were able to show substanial revenues. Clicks were worth a dollar back then, but are now down to 1 to 25 cents. They were great for the high traffic sites and that’s about all. If there’s a $50 minimum payment and you’re being paid 25 cents a click then you will need 20,000 clicks. Read about some of the other methods and you will see that statistically speaking, those 20,000 clicks might result in say 100 sign ups at $100 each which gives you $10,000. A bit more than $50!
Also have a look at some of the pay per click search engines and you will see what some casinos and sportsbooks are willing to pay. Don’t accept 25 cents. Better still, don’t accept this method and get a better deal. If you don’t ask……..
GROSS PERCENTAGE OF DEPOSITS or GROSS Like the movie industry, this is the holy grail of deals if you can get it. However gross doesn’t always mean gross, so make sure you understand and are happy with the definition. It usually means a percentage of the deposits made by a player and is not dependent on them winning or losing. Often it is only the first deposit rather than all deposits. This can work against you because many players will deposit a small amount, see how they go, assess the support and timeliness of withdrawals, and then make their decision to stay or find another one.
Do the first deposit deal if you have to and once you have proven you can send quality traffic, try and negotiate something better. Expect to get in the 10% to 15% range for this type of referral.
There is only one site I am aware of that pays gross on all deposits. See the Best Affiliate Programs page for more details.
NET PERCENTAGE OF CASINO OR SPORTSBOOK WIN or NET is the most common and potentially most confusing because of the variation in how it can be calculated. In a nutshell, you will receive a percentage of the amount the casino or sportsbook wins. ie the amount the player loses. After getting over the definition hurdle this comes out as the most favourable method because you create a residual income. As long as the player keeps making deposits and losing , you will keep getting your percentage.
If the player wins then you don’t get paid, but statistics show that players at casinos will lose. Why else do they exist? Complications arise when some programs carry forward the losses and other don’t, but alas, we’re getting ahead of ourselves.
So what does net really mean? Deposits minus payouts, deposits minus payouts minus bonuses, deposits minus payouts minus bonuses minus merchant fees, deposits minus payouts minus bonuses minus merchant fees minus reserves. Get the idea? As I said before, read the terms and conditions as this must be defined. Good programs show these amounts separately, if they are taken into account.
Percentages vary from 10% to 60% but the higher the percentage, the more likelihood of charges being deducted after the percentages. Number people are always good as making them show what they want, and the gambling industry survives on numbers, statistics and probabilities.
There is usually a sliding scale so the more the casino or sportsbook wins, the more you will receive. An example is 25% for up to $5,000, 35% for $5,001 to $15,000 and 45% for $15,001 and above. Once again you may need to prove yourself, but if you are sending plenty of sign ups, try and negotiate a better deal.