Average value of sports better to an affiliate

[affiliateCharlie]

Hi, I'm new to the affiliate world and have a basic question which I'm sure must've been asked before but I can't find it on the forum.

How much is the average referee worth to the affiliate? I know in a small sample size it can vary vastly, but say you have 1,000 sports betters signed up through your affiliate links to a site offering a 30% rev share, how much would you expect to profit from each one per month? Would it be something like £5? £10? More? Less?

[golfbettingsystem]

Not sure there's a simple answer - lots of factors to consider and will also depend on whether you're talking about a sample of 1,000 regularly active punters out of a bigger pool or just 1,000 signed up over time as there's a significant attrition rate in my experience.

Assuming it's the latter, and you didn't recruit all the punters in one go - most likely over a period of months or, even more likely, years - then your 1,000 punters is more likely actually to be say 200 active punters and the rest are dormant/never likely to bet again. So if you earned say £12k p.a. from your 1,000 punters that's £1 per month overall but £5 per month for the active bunch which, ultimately, is who you'll earn money off.

You'll also have to keep recruiting at a rate that at least offsets the ongoing attrition rate in order to maintain/grow your revenue.

How you got the punters will also affect the figures (ie one-off promotion/enhanced price) versus someone who genuinely wants to use that bookie ongoing, as will the actual bookmaker themselves as there'll be vastly differing retention rates between bookies. I expect there'll also be differences between sports and niches too as the margins for bookies will invariably differ by sport.

If I were to hazard guess at an average it would be easily sub £5 if you're looking at your overall numbers recruited over time IMO.

[affiliateCharlie]

Thanks for the detailed reply.

Yes, I was just meaning a random sample of 1,000, so including those who don't bet much or at all, along with the regular bettors.

An average of £1 per sign up per month was a little lower than I was hoping. Obviously means you need to be hitting 2-3,000 total referrals before you can be hoping for it to be anything other than just a supplementary income. The first 100 referrals seems a long way away, never mind the first 1,000! And that's before you factor in your customer acquisition costs, which is a whole other question! Could be a year or 2 before you even break even by the sound of it?!

[DanHorvat]

Take the total annual profit of the UK bookmakers and divide it by the estimated number of bettors in the UK. Take 20% of that, and that's roughly how much you can expect to earn as an affiliate per player if you had a really big number of referred players.

I'd say it would be at least £10 per month but didn't do the exact calculation for this market.

[affiliateCharlie]

Cheers Dan. £10 per month per sign up sounds a lot healthier! I was hoping it'd be at least around the £5 per sign up mark, so in the middle of the 2 estimates given here. I guess I won't know for sure until I crack on and get those first few hundred in and see how I do. Cheers

[baldidiot]

I don't think you can value it as a £/month as the revenue isn't going to be ongoing like that - if you sign up 100 players today and that's it, you're not going to make £1000 a month for the foreseeable future. Instead you'll most likely make xxxx in your first month, less in your second, less again in the third etc..

Punters stop betting for a number of reasons (they switch bookies, stop betting, have less to bet with, have a kid, die etc..) so you need fresh new accounts coming in to offset the decay.

A more useful question may be what is the average lifetime value of a sports betting account. I've been meaning to look into this for a while so may run some numbers after the WC.

[DanHorvat]

True, these calculations of player value per month are only useful when you're comparing different markets against one another and choosing which one to target. For all other purposes this is useless.

Like I said, to actually come close to those numbers you'd have to have a huge bunch of players, tens of thousands. In reality you may earn £1000 from two guys or have 1000 players and go negative. The £ per player per month is only really a guideline on what to expect. But you'll never see that exact number. Even the bookies never do, they also live and die with Brazil vs Mexico.

[freebetsfreetips]

I vaguely remember hearing that each account is worth £900 to the bookie over its lifetime.

[sarrah]

Well approximately £10 per month but depends on other factors and calculation.

[Jokerman99]

Your question is way too complex to answer. he question is a bit like asking "how long is a piece of string"?

Players signing up for a free £5 bet or via social media may have totally different value to guys who are searching for something like "football betting". On some sites my "lifetime" player value (obviously it is not true lifetime as these guys are still active) is $100 @ 40-50% rev share. At others it is much higher. At sites where I've sent much smaller player numbers it can go down below $20 per player.

[RacingJim]

Agree with jokerman above it can all depend on the type of traffic and volume of signups. Higher signup volumes will get you closer to the 'average' for that type of traffic.

[universal4]

"how long is a piece of string"?

It is 6 inches. I know this because it is the same length as.....

Stop it....a dollar bill.

I carry that piece of string with me everywhere I go, so I can make sure on those rare occasions when someone gives me a dollar, I can make sure it is the same length as my string and that the dollar is real.

Personally I have found that sportsbook players are sometimes worth less than the string and sometimes more, but usually by the end of the year I am often asking friends to borrow a few dollars so I can get more string.....(gotta stop signing up winners I guess)

Rick
Universal4