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Affiliate question: how to better calculate affiliate earnings?

Discussion in 'Online Casinos' started by SlotMonster, May 25, 2011.

Tags:
    May 25, 2011
  1. SlotMonster

    SlotMonster SoftSwiss Representative webmeister

    Occupation:
    Manager
    Location:
    Somewhere in eternity
    Maybe I posted in the wrong thread, but I thought it can be interested to all members, and I'm open for discussion.

    The main question is: what's the best way to calculate aff. earnings?

    Now we are dealing with several models (developing our aff. program) and I must admit it's pretty hard to choose the best one. So, I would like to invite affiliates and players to discuss it.

    Conditions:

    - 35%-45% rev share for life;
    - no NCO;
    - bonuses given to players are not deducted from affiliates' earnings;

    To be honest - the last one is still under discussion, because it's pretty obvious that sometimes casino's earnings will be less than affiliate payments. For example, if player deposits $100, receives $200 bonus and then loses it all - affiliate payment (in case of 45%) will be equal to 300*0.45 = 135, which is more than casino actually earned (player deposited only $100).

    We consider the following models:

    1. Payments are calculated as [Deposits - Withdrawals] * [aff %] formula, which is calculated in the end of every month.

    This one would be the best IMO, but there is always way for possible fraud. For example, player registers through aff. link, deposits $5000 and plays just a little. In the end of the month we will pay aff. earnings depends on player's deposit. In the next month the same player submits a w/d losing about $200 or so, and affiliate is just closing his account, leaving us with losses. He even may not to close it, since we will have No NCO, and just wait until negative balance is vanished.

    2. Payments are calculated as [Bets(wagers) - Payouts] * [aff %] but it's pretty the same as #1


    I would like to hear your opinions.
    Thanks in advance!
     
  2. May 26, 2011
  3. Rhyzz

    Rhyzz Experienced Member

    Occupation:
    Online Gaming
    Location:
    United Kingdom
    Wagers minus Payouts would mean you're paying affiliate commission on bonus funds which is something I wouldn't advise, you'll never make any money.

    Most affiliates aren't stupid. They understand the need to credit bonuses and deduct this from rev share so don't try and do something revolutionary and shoot yourself in the foot, it's something that simply isn't needed.

    If you're not paying any rev share to a service provider then you may want to start the tiers a little lower too since you can compete with the bigger operators on a lower level.

    If you take an average Casino rev share, say 20%, then the affiliate gets paid on this structure:

    (((Deposits - withdrawals)-balance)-20%)*0.25 = 25% of casino actual net profit from player

    So as an example, you get this:
    ((($100 deposited - $0 withdrawn)- $0 balance)-20% = $80 * 0.25% = $20 commission


    With no rev share to be paid, you pay 25% on the full $100 made, so you are in effect paying the same amount at a 25% tier as a casino who pays 32.5% but with rev share.

    Hope this makes sense! :)
     
    1 person likes this.
  4. May 26, 2011
  5. SlotMonster

    SlotMonster SoftSwiss Representative webmeister

    Occupation:
    Manager
    Location:
    Somewhere in eternity
    Thanks, Rhyzz!

    We do not pay any rev.share since BigCasino is owned by software provider (Viaden).

    I also understand that we should deduct bonuses, because when it comes to withdrawal, and player has cleared WR, then casino should pay out with REAL money, when FREE chips were given to player.

    I need to check your calculations, and try to apply it to any possible situation. But Thanks anyway!
     

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