Affiliate Marketing is where an operator/business rewards affiliates for every customer or transaction that is directly generated by the affiliate’s own marketing activity and/or website. Casino Affiliate Marketing constitutes a substantial part of online casino revenues and business. It provides operators with an effective way of reaching specific market audiences and segments with relatively low costs and minimal risk. Online casino operators will usually offer two main types of renumeration models for affiliates, which are Revenue Share and CPA (Cost Per Acquisition) deals.
A Revenue Share model is designed for the affiliate to collect an agreed percentage of the lifetime revenue of every player generated by the affiliate. The CPA model is when the affiliate collects a one time payment for every depositing player generated by the affiliate. For each of these two affiliate programs there are, of course, advantages and disadvantages; which every affiliate will need to consider when deciding the one that best suits their needs. Finally, one also needs to factor in the individual circumstances of the affiliate.
The Revenue Share model can be very attractive, as most operators will offer an introductory deal which gives the affiliate an enhanced percentage for a specified period of time. There is also the fact of this deal provides the affiliate with a constant revenue stream, for as long as the player continues to make a profit for the online casino operator.
This is actually one of the key benefits of this model, as affiliate will in theory, over a period of time, increase the amount of players being directed to the casino; and in so doing, will can achieve an ever increasing amount of regular income. Furthermore, there is always the chance of landing a high roller or high staking player, who would then create enhanced revenues for the casino and thus for the affiliate.
The Cost Per Acquisition model main advantage is that an affiliate has an immediate fixed return for every depositing player introduced to the online casino. Therefore, there is no waiting for players to generate profit to the casino; payment is fast and fixed. This means that an affiliate will be able to realise earnings quickly and income is easily calculated and not varied; as it is not determined by a player’s wagering and gaming habits. This is quite advantageous for new affiliates who require quick returns in order to progress their business.
However, there are some disadvantages that one must be aware of with both models. The Revenue Share model assumes that the players introduced to the casino will generate profits, but this is not guaranteed. On the other hand, affiliates may regret choosing the CPA deal, especially if the quality and spending power of players introduced is above average; which means that Revenue Share would have far exceeded the CPA one off payment.
Both models require affiliates to review the terms and conditions of payment, especially when it comes to requirements of the player. So for example, some CPA programs will stipulate that the player deposits and wagers a certain amount within a certain time period. With regards to Revenue Share, there are times if the casino service is merged or consumed by another brand, player revenues introduced by the affiliate are lost in the process. Read this affiliate guide for further information.
Therefore, it is extremely important for anyone venturing into the world of affiliate marketing to assess their own individual/business requirements and circumstances, as well as ensuring that one only enters into a relationship with reputable brands and companies which have a proven track record of casino safety and security. Only then, one can minimise risk, maximise profits and enjoy the success that can be realised in this field.
