The effect of sportsbook free bets on income

[dcart87]

Hi guys, I have a quick question.

I run a matched betting website so most of my referrals sign up to use the free bets and do not bet outside such offers.

Now, on a rev share program this is going to negatively affect my commission over time yes?

My reasoning is based on the fact that bookmaking is a zero sum game and the value of those free bets must come out of the bookmakers pocket and ultimately mine.

Is there something I have overlooked?

Thanks.

[thebookiesoffers]

no, the bonus will be deducted from you

[dcart87]

Hi, thanks for the reply.

Just to be clear - before the earnings are paid to me from that player, the value of the free bet is subtracted from that amount - thus negatively impacting my earnings?

So, CPA would be the clear solution here.

Unless the free bet is also deducted from the CPA amount also?

Thanks.

[thebookiesoffers]

if you are sure the person will ever bet once then CPA would be better for you but dont think the operators will stand for that for long

the free bet is deducted from your rev share before you get paid

[IoannisTipbet]

I do not think that the operator would accept to give you a CPA deal as it will not give profits to the company.
Guys, always try to make win-win deals for long term collaborations.
This is my personal point of view all these years that I am in the industry thus we have adapted this philosophy to Tipbet

[golfbettingsystem]

Depending on the software used by the program in question you can see the impact of the free bets/bonuses on your rev share income. Income access programs for instance have a separate column - real eye-opener on some programs.

[dcart87]

Thanks for the input guys.

I do not think that the operator would accept to give you a CPA deal as it will not give profits to the company.
Guys, always try to make win-win deals for long term collaborations.
This is my personal point of view all these years that I am in the industry thus we have adapted this philosophy to Tipbet

I have already had some rejections due to the content of my website - the reasoning being that matched betting traffic is low quality.

This is a valid point and why I originally set my site up to cater for recreational players.

However, it proved difficult to get ranked due to the stiff competition so I shifted the focus of my site towards matched betting, which is generating more interest, but financially for me - looks less promising.

I suppose I could blend recreational betting with matched betting but this dilutes the appearance of my site and thus my authority.

So many conflicting variables... when it comes to designing a good overall business model.

What about hybrid affiliate plans - I have no experience with these - do you think they might provide a fair solution?

Thanks again.

[RacingJim]

Matched betting i.e. somebody backing both outcomes but at different bookies?

Wouldn't touch those people with a barge pole to be honest.

[thebookiesoffers]

Matched betting i.e. somebody backing both outcomes but at different bookies?

Wouldn't touch those people with a barge pole to be honest.

that aint matched betting though is it, Oxford to win the boat race 10/11, cambridge to win 10/11. matched betting is using the bonuses to work an advantage.

[dcart87]

Matched betting i.e. somebody backing both outcomes but at different bookies?

Wouldn't touch those people with a barge pole to be honest.

I think you are referring to arbitrage betting - I don't promote arbing.

Matched betting is backing with the bookie and then laying with the exchange to lock in profits regardless of the outcome from the free bet.

[thebookiesoffers]

I think you are referring to arbitrage betting - I don't promote arbing.

Matched betting is backing with the bookie and then laying with the exchange to lock in profits regardless of the outcome from the free bet.

i'll stand slightly corrected then but he's still wrong, again

[dcart87]

i'll stand slightly corrected then but he's still wrong, again

Ha no you are right I was just clarifying

Anyway, it looks like I have shot myself in the foot by attracting low quality traffic - I never knew the bonuses were deducted.

So I need to come up with a work-around.

Recreational betting isn't my area of expertise - only advantage play is.

I do have a high quality product that I can recommend as a nice follow on to matched betting - but it would need a high volume of sign ups.

Any further ideas on how I could monetise the the accounts I have captured?

[dcart87]

One idea is to promote the refund offers such as the bore draws, acca refunds ect since this would require punter to make bets that are not always guaranteed a free bet.

But from a mathematical stand point, I have not been able to work out if this is going to yield a long term profit.

I mean, if the punter makes a net profit over the long run from an offer - it still has to come out of the bookies pocket and thus mine eventually?

[Scampi]

Can players withdraw their free bets straight away, i.e. no play through requirements? Isn't that wide open to bonus hunters and a continued loss for the bookie?

[dcart87]

Can players withdraw their free bets straight away, i.e. no play through requirements? Isn't that wide open to bonus hunters and a continued loss for the bookie?

Most welcome bonuses have a play through requirement of 1x.

The higher value bonuses such as Bet365 has rollover attached to them - in this case £1,200 worth before any remaining funds can be withdrawn.

[TheGooner]

If you think that your punters are not going to lose money long term - be it because your matched betting scheme is so good or that the free bets offered push slight losers into slight profits then you don't have an affiliation business model.

You'll make nothing on rev-share, and any CPA deal you negotiate will not be honoured / continued when your players regularly make money.

The only viable models would seem to be either :
a/ a player subscription system where players pay to receive the tips on a regular basis
b/ or you could set up a bitcoin / paypal address asking for website donations from players.

However, the player subscription model means locking your site away from SE bots making it tough to rank and is generally only done after a reputation is established, and the website donation scheme is unlikely to yield much as 99.9% of visitors continue to freeload and do not contribute.

[dcart87]

Great response - thanks.

[RacingJim]

i'll stand slightly corrected then but he's still wrong, again

Lol. Make me laugh you do.