Just wondering about affiliates

[cheetahwind]

Ok, this might not be the section to post this in, but just a few things I've wondered.

Ok for the past year or so I've been on a horrible loosing streak. No matter whether I deposited without or without a coupon. Whether I played slots, cards, video poker, you name it. I just couldn't turn a profit for myself. Plus then again I started figuring out if I'm only depositing $50 and under. That probably going for $1,000 withdrawal probably isn't a realistic goal. So finally for one of my new year resolutions, being 1 that I'm on a tight $100 depositing budget. 2 my new goal for any deposit $500. Mainly because at Slotocash, your required to have a minimum of $350 to avoid the $45 wire fee.
So now that I have probably gotten all of the useless information out of the way.
So whomever sponsored me I believe it was probably either here or another forum I frequented. I can't remember, but anyways.
I realize on the months that I kept depositing and never winning anything significant. That they were probably making a percentage of each deposit off of me.
Now that I'm having a hot month, does normally the casino dock the affiliate now, because so far for the year. I'm up $600. So does that mean they have $600 less of commissions coming in or what?
The only reason why I'm curious. Is I have a few friends who want to play. Yet I want to setup an affiliate account for myself, and then reap some profits off my group of friends who want to play online. Yet I'm just concerned about the what if they win concept. Like how does each casino affiliate program deal with "winners". While I realize in the end, I want my friends to win. Just like I wanted myself to win something decent.
Just always something I wondered.

 

[lnspin]

There are 4 main ways this happens

1. This is a cpa plan, the affiliate program pays you a fixed fee for a depositing player. A once off payment. Usually range from $100 -$300 depending on the program

2. Rev share with negative carry over. If at the end of the month say your in the negative revenue, they carry over what you owe to the next month, untill its cleared. Averages 30-40%

3. Rev share no negative carry over : At the end of every month the slate is wiped clean, So if you end in the negative, you start the following month at zero. Averages 30-40%

4. Wager share. This is where your given a percentage of total bets, So if your player bets $1000 in blackjack, and the house win odds for this game are say 3%. Thats $30 total expected profit, and you would get your % of that. So if you were on a 30% plan you would get $9. This plan is great if you have a lot of players who play alot also if players win or lose it does not matter for you.

 

[IanO]

There are lots of different ways an affiliate deal could be set up, so it really depends on the specific agreement between them and the site in question. For example, you might pay one affiliate a flat fee just to introduce a new player to your site and that is where the relationship ends, and with another you might organise a revenue sharing deal for the players lifetime.

A fairly common industry term you may hear is 'no negative carryover' and this relates specifically to what you mentioned about winning players. when calculating payments at the end of a month for if the players that joined through you as an affiliate were all winning you dont get any comission on rev share that month, but then the slate is wiped claen before the following months calculations.

EDIT: I see Inspin beat me to it with a more comprehensive answer

 

[Simmo!]

Yet I'm just concerned about the what if they win concept. Like how does each casino affiliate program deal with "winners". While I realize in the end, I want my friends to win. Just like I wanted myself to win something decent.

Just to clarify something, you will never be in a position where you owe the casino/affiliate program any money if your players win. At worst, it just means you have to claw it back before you can get into a cash-positive situation again. And that assumes you are on a "rev share" plan not, as lnspin points out CPA or Wager Share where that is irrelevant.

I've always said that players make the best affiliates - people who know what they are talking about, who are enthusiastic and can offer up generally honest opinions so, if you are thinking about it, have some time and can do that, then it is worth a try IMO. But time is something you shouldn't under-estimate...there is a lot to learn, even for a seasoned player! I reckon I put about 12 hours a day in 6/7 days a week on average although a) a lot of that is reading, b) a lot of that is "researching" games and c) it combines my two passions and hobbies (slots and web dev) so it doesn't feel like work at all

One tip though: affiliate programs are well aware that some players just try to open accounts for themselves and a friend or two to effectively get cash-back on their losses and they are wise to this and won't wear it. Most will expect to see you making an effort to attract a wider audience and most won't allow you to affiliate yourself as a player.

If you do go for it, good luck