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  1. #1
    Agentti is offline Public Member
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    Default Every single FTD resulting in a negative netrev?

    Hey guys!


    Just wanted to hear some opinions and if some of you guys had similiar results with some brands or in some particular cases as us in this case.

    Thing is , we started just working with a new brand. They are not brand new , been live for some years. We just now started with them and have sent about 50 FTD´s currently. We are on a hybrid with them where we have a 35% share on the netrev.

    They have a 200% promotion which you can grab with max deposit of 50€ , so basically deposit 50€ and start playing with 150€.


    Thing is , player´s first deposits have been in the range of 20€-50€ but every single one of these 50 FTD´s are resulting in a negative netrev. For example , it seems that a deposit of 50€ , almost in every case results in a negative netrev of -70€. There is not a single FTD that has resulted in a positive netrev. Netrefer is the system they are using.

    Weekend has just started and I will be in touch with the affmanager on monday about this but could this be a case of insane fees or bonuscosts so that atleast the first deposit of a player will always result in a negative revshare? Or is this something else that needs a deeper look in to?

  2. #2
    Triple7 is offline Private Member
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    If they charge admin fee + bonus costs, than the first deposit results in a negative amount. Even if they lose their deposit. If they charge insane fees, it could be € 70 on a deposit of € 50.

    If their retention is ok, it's worth the "investment", if not, it'a a RS killer.

  3. #3
    loquax is offline Private Member
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    We've seen this on one group of sites - no matter what we do with their brands the revshare is pretty much always negative. When we've questioned this with the AM the response is always "we can offer you a higher RS for more exposure" which always baffles me.

    Jason

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  5. #4
    UTG
    UTG is offline Public Member
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    Quote Originally Posted by Agentti View Post
    Weekend has just started and I will be in touch with the affmanager on monday about this but could this be a case of insane fees or bonuscosts so that atleast the first deposit of a player will always result in a negative revshare? Or is this something else that needs a deeper look in to?
    I have promoted a couple of brands that had so high admin fees that the first deposit always resulted in negative revenue due to how they deducted the bonus and calculated the admin fee. A €50 deposit could for instance look something like this with 30% admin fee (some have even higher)

    Bets - wins (=€150) - 30% admin fee (€45) - bonuses (€100) - transaction costs - gambling taxes

    That gives €5 net revenue if there are no transaction costs or jackpot contributions. Some brands deduct license fee + admin fee so that can easily add up to more than 40% deductions. With 40% deductions and no transaction costs or taxes, then the net revenue would be -€10 for a player that lost their initial €50 deposit. That´s not really fair to affiliates.

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