The Cost of Doing Online Gaming Business: APCW Perspectives for 6 March, 2020

[APCW]

The Cost of Doing Online Gaming Business

Is it really a big deal that another affiliate program has shut down
and probably won't be paying affiliates the money they are owed?
Or is getting screwed out of commissions just a "business expense"
when it comes to being a webmaster in this industry?
We also discuss some Chinese exports!

WATCH ON YOUTUBE



Links to News Stories:

Welcome Goodwin Affiliates: https://www.apcw.org/affiliate-progr...dwin-affiliate
MoPlay Insolvent: https://www.sbcnews.co.uk/sportsbook...ce-suspension/
UKGC Launches Consultation: https://www.igamingbusiness.com/news...orting-changes
Chinese Gambling Blacklist: https://www.igamingbusiness.com/news...ling-blacklist

[Cash Bonus]

So many affiliate programs have closed down and there will still be others to follow in their footsteps, unfortunately. I also suffered the misfortune of a couple of programs closing down and not paying out. It's such nonsense and very upsetting. We just have to keep going and finding different programs to work with instead. There's no other choice really.

Another awesome video Jay Todd. Kudos to you for your awesome work.

[PROFRBcom]

Another excellent video. I always appreciate your perspectives J. Todd.

[Former Member 14]

As I say on DOCH "Monkey See Monkey Do". That certainly fits with the introduction of these absurd Admin Fees.

Program AM's justify these BS "Admin Fees" because of their licensing jurisdiction EG: UK/Malta etc. But casinos etc., operating out of say Curaçao who are not paying a gambling-tax levy etc., etc., their affiliate programs are also deducting these bogus fees.

Affiliates have been getting fed this BS, mainly from, browser based casinos who have multiple igaming providers.

If “Admin Fees” were a valid GGR deduction, then all programs would use them. But they don’t.

EG - Deckmedia Aff Program has casinos with multiple game providers, BUT they don't deduct an Admin Fee. If a player loses $1,000, and your on 30% commission, then your paid $300 commission on that $1K loss.

In vast contrast, Video Slots Affiliates (who deduct a 25% Admin Fee) @ 40% commission, when ALL GGR deductions (bogus or otherwise) are deducted, the poor affiliate is lucky to earn 5.9% commission.

On a $1,000 loss, that's $59.00; a far cry from $300 in the above example.

@J.Todd - A while ago I spotted a post here from a newbie affiliate who, scoffed at 30% commission. In his mind, seeking much higher commission percentages were far better deals. Unfortunately, this mindset seems to be quite prevalent these days.

Sure, if your delivering high-volumes of NDP's p/m, a much higher commission % is valid. But... generally, newbies aren't doing that.

Educating newbie affiliates on what is acceptable practice, and what is not, seems to be lacking these days.

Back when I started (2000) and even years and years later, if a newbie affiliate stated XYZ here, and that was misinformed information, then more often than not, an established affiliate would correct them.

That happens less and less these days. Hence, newbies are thinking 40, 50 and even 60% commissions are the norm.

NB - As limited time intro, a program may offer a much higher commission % as an incentive to join them. The operative word here is: limited. No program could sustain a large, inflated commission % all the time.

IDK about others, but I'd rather be on 30% commission and receive $300 on a $1K loss, than be on 60% and get paid peanuts.

P.S. And don't start me on the bogus bonus GGR deduction scams.

[Gytis]

Informative, Solid.

[ocreditor]

Thanks for the news!

[APCW]

A while ago I spotted a post here from a newbie affiliate who, scoffed at 30% commission. In his mind, seeking much higher commission percentages were far better deals. Unfortunately, this mindset seems to be quite prevalent these days.

Educating newbie affiliates on what is acceptable practice, and what is not, seems to be lacking these days.

That happens less and less these days. Hence, newbies are thinking 40, 50 and even 60% commissions are the norm.

Excellent points, Dave.

Back when I was still an affiliate the "newbies" asked me the same thing. Should I take 30% with an established, trusted program? Or 50% with the new kids on the block?

My answer was simple: Would you rather have 30% of $10,000? Or 50% of $50?

[Renee]

IDK about others, but I'd rather be on 30% commission and receive $300 on a $1K loss, than be on 60% and get paid peanuts.

Honestly, I'm actually tired of explaining this to affiliates.
Programs are still offering these huge "fake" percentages because they can, and because no matter how much you explain it, there seems to be no common sense in this.

I give affiliates real dollar value breakdowns to show that our 35% is actually higher than other programs 50%, but they still insist that they would rather go with the program offering 50%.

So maybe what us programs who offer true percentages *should* do is, claim we pay 100%, then just remove 80% as fees before we calculate the commission.

Of course this is a JOKE.

If I roll my eyes back any further I'll be able to see my soul.

[Former Member 14]

Honestly, I'm actually tired of explaining this to affiliates.

I'm surprised you still sane. I'd be wanting strangle someone if, I had to explain these "fake" commissions all the time.

I give affiliates real dollar value breakdowns to show that our 35% is actually higher than other programs 50%

I'm on the wagering-model with RA. How many programs offer that? Aside from them, I'm yet to find anyone else. Their RS is a bona fide 35%.

With regards to commission payments, RA are as reliable as the day changes to night. Never had a late payment (aside from a couple which was totally out of their hands, it was a 3'rd party banking issue).

Casinos only have 100% GGR to commence with.

Add in all the valid deductions, and 60% RS is mathematically impossible. It's only possible by deducting huge admin fees and alike, in which case, it's no longer 60% revenue share. Wake up people, your getting played for mugs, with these over inflated RS figures

[Renee]

I'm surprised you still sane.

Am I though? :/

[universal4]

Wait, did Dave really honestly call Renee sane?

Wow

Rick
Universal4

[Renee]

Wait, did Dave really honestly call Renee sane?

Wow

Rick
Universal4

Funnily enough, it's one name I've never been called before.
There's a first for everything eh Rick? LOL

[tome1122]

Thanks for sharing this video

[FintanCostello]

EG - Deckmedia Aff Program has casinos with multiple game providers, BUT they don't deduct an Admin Fee. If a player loses $1,000, and your on 30% commission, then your paid $300 commission on that $1K loss.

A programme paying rev share on GGR (bets-winnings) is very much the exception, it's normally NGR (GGR-free bets-other fees), I'm really surprised to see this

[mediapartner]

Thats one of the reasons why i decided to never work with pure revshare deals anymore. The whole affiliate commission structure is obsolete in my opinion. Also when you look at all the rules affiliates have to comply to nowadays. Casinos need to understand that running an affiliate site cost a lot of time and money. its a real job and people need to be paid for that if you make use of their services. So, as an affiliate i want to be seen as a real partner, not as someone that can be used to get cheap traffic for peanuts...

And why would you even work based on commission? Casinos have zero risks and you as an affiliate take all risks commission-wise. This while most casinos are highly dependent on affiliates. They dont mind spending 300k a month on media buying and other marketing, but paying a few thousand euro a month to an affiliate is too much to ask...its crazy.

Luckely there are more and more casinos willing to pay fixed monthly fees instead of commission. as its good for the casinos as well as they can lower commission to 5%-10% with combi deals and increase their profits fast. as an affiliate im more happy with a fixed 5000 euro a month fee or whatever number...compared to a possibility of 10k+ or more a month, which in reality always gives huge headaches in the long run..