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View Poll Results: If you had the chance, would you open your own online casino?

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  • Yes!

    13 28.89%
  • Not right now, but in future Yes!

    6 13.33%
  • I prefer to be an affiliate.

    26 57.78%
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  1. TheGooner's Avatar
    TheGooner is offline Private Member
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    You confuse bigger with being better. When you start earning money you will realise that there is a point where you have enough for a very comfortable lifestyle without taking on extra risk.

    Additionally, you pluck out one of the top performing brands as an example, which does not give balance to your question. Bodog was a pioneer of an early adopter and claimed a marketspace. it's a much tougher market now.

    For every Bodog - there are 10 breakeven operations - and probably 10 failures. We all know groups that have crashed and burned in the last 2-3 years. I cannot think of any new high-flyers.

    Similarly, I could point to Google and say that affiliates know so much about SEO that they should create their own SE rather than continue to use an existing engine.

    Unfortunately, it's pie-in-the-sky styled muddy thinking. The skills needed to operate and market a successful affiliate business are very different to those needed to run a casino / poker room or create a search engine.
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  3. casinoeu is offline Public Member
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    Hi

    The first thing always to my mind after you have started up the running a casino is traffic .One should have a network of own sites before deciding that he should now run a casino
    As far as my part is concerned I am happy being a affiliate
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  4. Nandakishore's Avatar
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    I think the best way for a casino to create traffic is to acquire affiliates.
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  5. casinoeu is offline Public Member
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    Quote Originally Posted by Nandakishore View Post
    I think the best way for a casino to create traffic is to acquire affiliates.
    Yes right but how would affiliate come to know that X is a new casino and It has banners on the top websites for major keywords .This can only happen when you have your own network of websites on the top of google so affiliate would demand to know more about that new X casino
    This is my point of view
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  6. Casinorep is offline Public Member
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    Obviously there is a much bigger upside to being a casino operator than an affiliate financially. I mean the big guys like Calvin Ayres and the owners of 888 and PartyPoker all became billionaires with a "B". Haven't heard of any affiliates in that category.
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  7. jackten's Avatar
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    Quote Originally Posted by Casinorep View Post
    Obviously there is a much bigger upside to being a casino operator than an affiliate financially. I mean the big guys like Calvin Ayres and the owners of 888 and PartyPoker all became billionaires with a "B". Haven't heard of any affiliates in that category.
    Yep, that was partly my point.

    Of course it depends if your end goal is to just get by or if you want to build an empire.

    In the latter case, you can give 50% rev share and still be infinitely more wealthy than your affiliates. Laugh all the way to the bank. Then sunbathe on your 60 feet yacht :P
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    Quote Originally Posted by jackten View Post
    In the latter case, you can give 50% rev share and still be infinitely more wealthy than your affiliates. Laugh all the way to the bank. Then sunbathe on your 60 feet yacht :P
    I wish it was that easy.

    Infinitely more wealthy? not close. You can't give a true 50% revenue share and be sustainable let alone infinitely MORE wealthy. There's a lot of costs you may not take into consideration.

    Again, you make it sound easy. lol The reality is very different.
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    Quote Originally Posted by LiveCasinoPartners View Post
    I wish it was that easy.

    Infinitely more wealthy? not close. You can't give a true 50% revenue share and be sustainable let alone infinitely MORE wealthy. There's a lot of costs you may not take into consideration.
    It's all about leveraging.

    Who is going to be infinitely MORE wealthy: the affiliate getting 40% revshare (since you didn't like 50%) or the property making just 5% profits off of every player every affiliate ever brings in?

    Per player, the affiliate will make more money and believe he's getting the big share of the profits, yay. When you cumulate every player from every affiliate the casino ever gets, however, the story is very different. I know the programs I've referred players to made way more money than I did.. I see player losses vs my commissions. Now, if they mismanaged their revenues / expenses that's their problem and I ain't cryin' over it.

    Quote Originally Posted by LiveCasinoPartners View Post
    Again, you make it sound easy. lol The reality is very different.
    Of course it's not "easy", otherwise everyone would have a casino in their backyard. There would be more casinos than players.

    The guys sunbathing on their yacht had to work their a$$ off to get there, and have the right recipe at the right time.

    We aren't arguing that being an operator is easy.

    We're arguing that it's more lucrative. Whether you're selling a product, a service, gambling, owners always have the advantage..

    The math is there. Unless your casino depends on like 2-3 super affiliates who generate all your revenues, the owner will ALWAYS come out ahead due to leverage. If they don't have enough affiliates to make this happen, they need to revise their strategy.

    I'm really curious about the reasons why casinos fail. My #1 guess is they don't start with enough money, and must spend a ton of money in negative ROI stuff.
    Last edited by jackten; 1 December 2010 at 12:18 am.
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    Quote Originally Posted by LiveCasinoPartners View Post
    I wish it was that easy.

    Infinitely more wealthy? not close. You can't give a true 50% revenue share and be sustainable let alone infinitely MORE wealthy. There's a lot of costs you may not take into consideration.

    Again, you make it sound easy. lol The reality is very different.
    For the last week all your posts on the topic are how hard it is, how its almost impossible to succeed, and yet you chose to be an operator not an affiliate . Isn't this a little bit of a propaganda on your side in order to keep the affiliates' minds intact?
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    Quote Originally Posted by LiveCasinoPartners View Post
    I wish it was that easy.

    Infinitely more wealthy? not close. You can't give a true 50% revenue share and be sustainable let alone infinitely MORE wealthy. There's a lot of costs you may not take into consideration.

    Again, you make it sound easy. lol The reality is very different.
    For the last week all your posts on the topic are how hard it is, how its almost impossible to succeed, and yet you chose to be an operator not an affiliate . Isn't this a little bit of a propaganda on your side in order to keep the affiliates' minds intact?
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    Yes, I am re reading my threads and it does look like I'm "down" on it. It admit it could certainly be construed as hypocritical.

    What catches my eye on this thread is the perception. Phrases like:

    Of course it depends if your end goal is to just get by or if you want to build an empire.

    In the latter case, you can give 50% rev share and still be infinitely more wealthy than your affiliates. Laugh all the way to the bank. Then sunbathe on your 60 feet yacht :P
    "laugh all the way to the bank" is a good one. lol. I would certainly love to laugh all the way to the bank (figuratively), but not at affiliates expense.

    The industry is booming, both operators and affiliates are doing very well.

    Now, I've seen affiliates who have leveraged their online properties and launched their own brands with excellent success.

    I've also seen investors with no experience lose their shirts due to lack of understanding of the business.

    There's examples on both sides. There's affiliates doing 8 figures per year. It's all relative to what your strengths, resources, and core skill sets are.

    No matter what, it's imperative that a before launching any online venture that a solid knowledge base is there. If it's easy then everyone would be doing it right?
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  15. EugeneK is offline Public Member
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    For online casino the super point is that you can promote that without investments into seo, links, ads. Just affiliates. Bring a lot of affiliates and excellent retention team. That's all. Good examples are C-Planet and Brightshare.

    "That's all" - it is a lot of money, proper high end skills, and brains.

    Of course there are less opportunities to become billionaires as an affiliate, but let's remember that Bodog founder made top of his money before USA ban. I think the same situation with other casino stars. As I heard people had being doing huge money with low low investments as an affiliates.

    So sometimes the most crucial fact is time to market window.
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  16. Casinorep is offline Public Member
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    Also keep in mind that this business is over saturated, so being an operator can yield a much much higher failure rates than an affiliate. Those big guys like bodogo and 888 all started when no one was in this market and the web was new.

    Nowadays you'd have to rely heavily on affiliates to send you traffic. But it's not easy to convince an affiliate to promote for you. They are going to want to promote the brands that they feel convert the most for them, and not necessarily abc casino that just popped up. Where as being an affiliate you have the freedom to choose whoever you want to push traffic to.

    The high upside for an operation I mentioned may apply 10 years ago but not necessarily so in today's climate.
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    Quote Originally Posted by Casinorep View Post
    Also keep in mind that this business is over saturated
    Excuse me?

    I believe what you mean is: the market is saturated for casinos that have the same games, same concepts, same ideas, and same marketing model.

    "Everyone else gives bonuses.. let's give bonuses too, just BIGGER. Everyone else relies on affiliates.. let's do affiliates. Everyone else offers this, let's offer this"

    In other words, they have the same offer everyone else does, which makes them a commodity. If you're going to be a commodity, you're not going to compete with established brands.

    This is all marketing 101.
    Last edited by jackten; 2 December 2010 at 9:16 pm.
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    if i would go for casino, i will prefer to have most recognized software like microgaming and follow fair business practices like 32RED or any other well devloped brands and i hope getting serious players should not be a problem.
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