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  1. #1
    diablo is offline New Member
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    Default CPA type deals VS. CPM when starting portal and legal issues

    I have an internet marketing company that generates millions of dollars in net income for me. My Lawyer says that CPA/Rev Share deals have far more risks because they could be considered illegal because your creating a partnership with the casino, sportsbook, etc... VS being paid a flat fee or some form of CPM advertising.

    This worries me, as I don't need any legal hassles and totally destroys my initial plan. Which was to first use CPA type deals, while building proof of traffic and then move to flat rate type advertising.

    Has anyone ever had any success starting a new portal with out CPA deals?

    Mike

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    Ace Fun's Avatar
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    I thought revshare contracts specifically excluded the establishment of agency/partnership deals, and all income was cosidered as just a sales commission.

    I don't mind being a partner in some of the casinos though, if they would prefer this option.

  3. #3
    diablo is offline New Member
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    My lawyer said the potential problem with cpa/rev share is that you are being paid based on the action of the person that is seeing the advertisement (you are only being paid from the actions of them becoming/being their customer). So technically you are entering into a partnership with them VS. being paid a flat fee soley to run an advertisement.

    Maybe this is all gray area, but it's spooky to me!

    Mike

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    Simmo! is offline Public Member
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    Hi Mike

    A couple of questions if i may: does this specifically relate to gambling affiliations? As that theory would affect all affiliates in any industry otherwise I'd have thought. If it is just gambling, is it based on US law maybe where gambling is largely an illegal activity?

    Cheers

    Simmo!

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    diablo is offline New Member
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    This relates only to US law/online gambling.

    Mike

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    Ace Fun's Avatar
    Ace Fun is offline Public Member
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    Sounds as if you are talking to a US lawyer. I think it would be worth discussing it with one in the real world. Remember that the US has driven online casinos out of America, so I would check that US law is relevant.

    This comment should not be considered as legal advice, as it comes from someone who believes that the Acacia "lawyers" are extortionists, and should not be given the protection of the US government.

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    VPJunkie is offline Private Member
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    Hi Diablo,
    As this is a long-running subject here, there are several threads already in this forum that discuss the legal issue in depth - you can run a search for it to pull the threads up.

    You can start with this one, tho - https://www.gpwa.org/forum/viewtopic.php?t=17844

  8. #8
    diablo is offline New Member
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    I wasn't seeking info on legal issues (I just made a statement regarding what my lawyer told me and asked a question about CPA VS. CPM).

    Everyone that responded decided to respond regarding the statement rather than answer my question. I should of just asked the question and left out the legal stuff. Maybe then someone would of answered it???

    Mike

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    VPJunkie is offline Private Member
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    Default Re: CPA type deals VS. CPM when starting portal and legal is

    Quote Originally Posted by diablo
    I have an internet marketing company that generates millions of dollars in net income for me. My Lawyer says that CPA/Rev Share deals have far more risks because they could be considered illegal because your creating a partnership with the casino, sportsbook, etc... VS being paid a flat fee or some form of CPM advertising.

    This worries me, as I don't need any legal hassles and totally destroys my initial plan. Which was to first use CPA type deals, while building proof of traffic and then move to flat rate type advertising.

    Has anyone ever had any success starting a new portal with out CPA deals?

    Mike
    That's because you brought up the legality issue your attorney told you about.

    So to answer your last question, I think it would be nearly impossible at this point to start a new portal selling flat advertising. There are already too many portals out here, and without any kind of track record for traffic/conversions, what would you have to sell them?

  10. #10
    diablo is offline New Member
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    What my lawyer told me is what lead to my question. I had no idea it that everyone one would focus on it, rather than my question.

    Regarding your answer... I figured starting such may be difficult with flat rate advertising only. I have have some other strategies that I might try.

    Thanks,

    Mike

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    Casinos are a legal form of international "trade". Has there been any update on the case that America lost with the WTO?

  12. #12
    breakbets is offline Public Member
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    Wait, *millions* of dollars in net income? For you?

  13. #13
    diablo is offline New Member
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    SulkyGirl,

    Yes, I have an internet marketing company which I make millions of dollars from. Hence, I generate a lot of traffic and I was looking at the online gambling market as a possibility of a new revenue stream.

    I know I would have no problem generating traffic for it and since I'm a marketer first and foremost, I know how to make traffic convert, so I have no doubt that I would do well. I'm just a little spooked by all the potential legal pitfalls this market has and the fact that most legal issues are very unclear.

    Since you asked about money... The most important thing when it comes to making money on the internet is that you learn about marketing. What you are marketing is irrelevant, becuase once you know how to market, you can market anything! This is why most people don't make much money on the net and why some people make a lot!

    Believe it or not, making a million dollars per year marketing on the internet is easy, if you know the right way to do it. Broken down it's only about $2800 per day. How do you make $2800 per day?

    Here is how I would start...

    1) Get as many good sources of cost effective traffic. This isn't limited to search engine traffic or traffic you pay for... theres lots of other ways to get traffic.

    2) You need to track every traffic source that you have, so you can determine which ones are the best and which ones you need stop using.

    3) You need to test/track how your site converts. This should be on going, as you will find theres always something that can be tweaked and end up increasing your conversion.

    4) Once a visitor comes to your site you need to collect their email address. Your goal should be to collect the email of every visitor or die trying!!!

    5) You need to have a backend of products and services to market to everyone that gives you their email address.

    You could break even on 1-3 and make all your money on 4 & 5. Not only that, If done right, 4 & 5 should be far more profitable than 1-3, because you collected their email address and you can now market to them over and over for next to $0.

    The above is nothing more than some basics and just the tip of the iceberg. However, just in the above theres a lot to learn. So the sooner you start the better.

    Also, Lets say that even with all your efforts that you don't make $2600 per day. Well, so what... go and duplicate all the marketing strategies that you learned and do it with another online business. If this still doesn't get you to $2600, duplicate it as many times as you need to, till you get to a consistent $2600 per day.

    If I ever start a portal, I personally wouldn't even try and make $2600 per day. I would look to make as close to $1000 per day, which is what I do now with each new venture. So far I take in little over $8K per day and my goal for this year is to build it up into the $6-$10 million per year range.

    Also, doing the above with multiple ventures, spreads your risk out. If one of the businesses goes to hell, your only losing a small piece of your income verses all of it!

    Anyway... that's my 2 cents.

    Mike

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    VPJunkie is offline Private Member
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    Some very sound advice!

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    breakbets is offline Public Member
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    Sound advice indeed. I got into this business through trial and error and it took me a year before I was actually making a living. But now I am!

    I still think of this as my little "dayjob" though. I'm "really" a writer. Ahem. Just not making any money at it yet. I've diversified as well, so if the DOJ ever decides to go after tiny businesses like mine, at least I'll still have my other sites. Promoting adult sites is my second most profitable online endeavor, but my most secretive. I can't tell my parents about those.

    What can I say, apparently I have a knack for writing adult ad copy. Raised Catholic. Yeeha. My sunday school teachers would be so proud.


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    Ace Fun's Avatar
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    I went to a catholic school as well (Josephite) and I also run a load of adult sites, but I'm not too secretive about it as they are all about "normal" relationships.
    Maybe those priests and nuns gave us a well adjusted outlook on llife.

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