CPA for new casinos?

[medmi]

I am always a but reluctant of starting to promote new casinos or casinos that are not that popular. Since they are a bit smaller and new you never know for how long they will be around or if they will change their terms later down the road, or even kick affiliates out for "not getting a new NDC for X days". I guess we've heard it all..

Anyway, I would be willing to try a new casino out with CPA. That way I know that I will get paid for each customer soon and also protect myself against them shutting down their business in a year or two. It is easy to start/stop promoting them since you have no players that "might generate $$$$$" at a later point in time.

I remember when the CPAs were huge and I am aware of that they are generally lower nowdays. So my question is: what CPA-commission would you accept today if a new casino approached you and wanted you to start promoting them? What is fair for both the casino and the affiliate?

[MrBinaryAff]

Hi medmi,

CPA has to be bigger than the first deposit of the player you bring.

[universal4]

The problem is, why would a casino pay an affiliate $200 or $250 per player when the affiliate might be sending players that only deposit $50 or $100 and then never return?

As much as an affiliate thinks they are risking a great amount working with a new casino property they have not previously promoted, the casino has a great deal at risk offering large CPA's for players from an affiliate they did not previously work with.

Start with rev-share and see how well your visitors like a property, then negotiate for a decent CPA, or try and negotiate a hybrid type deal in advance.....or just stick with revshare since you will likely earn more anyway.

Rick
Universal4

[TravG]

I would say $200 - $250 is fair and is what most casinos (new or otherwise) seem to offer. Like universal said however, rev share is always the way to go, at least I think. If they would change their terms hopefully they would not be retroactive and you could decide then whether you still wanted to promote them. Personally I like a hybrid deal where you get a little money up front but also have some skin in the game on rev share. Even better I like to receive "bonuses" for hitting a set number of players, ex 10 players = $1000, 25 players = $3000, 50 players = ..... and so on.

[gyaloggalopp]

@TravG: when you negotiate deals with these "bonuses", do you have also some revshare or this is more like a CPA deal but bundled?

[TravG]

It is mainly a rev share deal. I think a good rule of thumb is to negotiate your best rev share deal, whether it be 35, 40 or 45% and then take 5% off for the bonus. Then the bonus should pay about $100 per player as the average. You may have to give some special placement for your top deal, but worth it in mind. Hope that makes sense

[gyaloggalopp]

Interesting idea and seems like a more profitable model than a cpa+revshare combo. Thanks!