soflat said:
I was asking a serious question. If anyone knows the answer please chime in.
Soflat, I'm not an affiliate, so I can't give you any inside information.
You might gain some insight from how this issue worked itself out in the poker world, however. So bear with me, if you're interested, because it's going to be long.
Poker affiliates work on the same basis as casino affiliates, except that instead of taking a percentage of player losses, they take a percent of player rake. It starts out at 25%, up to 30%, and goes up from there.
A winning poker player will easily generate a thousand dollars a month in rake, and often much more than that.
Winning poker players, being, in general, not stupid people, eventually figured out that 25%-30%, or more, of "their" rake was getting paid out to some nameless third party - a third party who did nothing to contribute to the player's success, took none of the player's risks, and whose only contribution was the installation of a cookie on the players' computer during the ten seconds it took the player to realize the affilate site was just another lame banner farm. (Affiliates spend a lot of time on "search engine optimization," for just this reason.)
So what's the solution?
The solution was "rake-back."
At first it was mainly informal, and behind the scenes. You had to be in the know, and you had to know the right people. But word spread, as word will, and pretty soon - from a player's point of view - you had to be a moron, not to have an affilate deal. In fact, it was a godsend, since it represented
guaranteed income - insurance against the (inevitable) losing month. Many players paid their rent, off rake-back alone (and still do).
As good as this situation was for the players, though, it was not a good situation for established affiliates, or for Party Poker itself.
The established affiliates were losing their "whales" to the rake-backers (who, in fairness, were not actually "promoting" Party, but were simply taking over players who already played there.) Why should we spend all our money and time, they asked, promoting Party and Google-optimizing, only to have our players stolen from us, as soon as they get wise to what's going on?
Party couldn't give a good answer to that, of course, and at least some of the affilates who were asking the question, belonged to organizations Party did not want to piss off.
Worse - from Party's point of view - was that the main method players were using to get rake-back (since it was not "officially" allowed at Party), was to set up a rake-back account at one of the Party skins (Eurobet, Empire, etc.).
In effect, Party's players - their best, most profitable players - were getting raided by Party's own skins. And while the skins didn't "officially" allow it either, they were
very lenient, because they didn't much care who got the affiliate payment, as long as they got the player.
It was an intolerable situation, and it was at least partially resolved several months ago, when Party summarily gave the boot to its skins - all of them.
Some died, others got bought out by Party, and one or two moved on to other networks. But Party has no skins, anymore.
And Party still does not "officially" tolerate rake-back. It still goes on, of course, but it's more secretive now, and players who want it must be willing to cut a few corners and break a few rules. That is, if they had the bad luck of signing up through a non-rakeback affiliate, or directly through Party, before finding out about the much better deals that are out there.
Some players moved off Party altogether - those that weren't willing to dupe Party into thinking they were "new" players to get rakeback, and weren't willing to play at Party without it.
Around this time PokerStars offered a new VIP program. It's basically a comp program, except that it's much more generous than any other out there. It's still not quite as good as rakeback. But it does offer a couple of advantages - for one, it's perfectly legal, and entirely above-board. For another, you get to deal with the site directly, instead of going through an affiliate, who may or may not pay you (or even exist) from one month to the other.
PokerStars is the second biggest poker room out there, and it's slowly closing the gap against Party.
It has the best CS, the most reliable software, and the best anti-cheating security.
You might not know that, however - or anything about Stars at all - if you rely on affiliate sites as your source of information.
You see, Stars does not pay 25%-30% of its profits out to affiliates. As a result, affiliates do not promote them.
Whether there's any
connection between the amount Stars
saves in affiliate payments, and the amount it
spends on its comp program is entirely conjectural, of course.
It's
possible there's no connection, at all.