How much affiliates really get?

[kaskader]

Most of casino pay 25-50% of the net revenue but they own pay some commission to software operator (to Microgaming, Playtech etc) so if your affiliate program pay you 50% of players losses, you really get 25% or less. Am I right?
Sorry my english

[kaskader]

sorry wrong forum section.. moderators fix it plz

[elgoog]

good point!
yes indeed that is how it works
so.....it would be good to know how much % they have to pay!
it can differ from zero to a lot!

[FictionNet]

I don't think that IS how it works. We affiliates arrange a percentage of player losses. Whatever arrangement the casino has with its software provider is totally separate and irrelevant.

I know the percentages paid to software companies is very high (much higher than I first assumed) but I don't really concern myself with it.

[elgoog]

ok, but lets say you have 30% of the players losses
at casino A. wich has to pay 40% for the software, he loses 100
we get 30% of (100-40) 60 = 18
at casino B. 10% for the software, he loses 100
we get 30% of (100-10) 90 = 27

so it would be nice to know what the casinos have to pay for the software isn't it?

[FictionNet]

That's not how the calcs work in my experience, especially with my own tests. If a player loses 100 and i'm on 40% then I get 40. The casino pays the software provider out of their own 60%.

[LiveCasinoPartners]

I know the percentages paid to software companies is very high (much higher than I first assumed) but ......

They are high. I don't think that any program would give out specific numbers, but I can say that in our program the margin for the affiliate program is around 5%-8% on a revenue share basis. There are a lot of costs. You have the software provider taking a large share, affiliate software, player processing fees, charge backs, fraud, promotions etc. The remaining 5% has to pay for salaries of the employees and finally marketing costs (GPWA sponsor etc) and the other misc office type stuff.

So, as you can see the affiliates are getting the lions share by far with a lot less hassle. Being on the inside has certainly given me another perspective of the costs associated with operating and marketing a casino affiliate program.

[elgoog]

If a player loses 100 and i'm on 40% then I get 40. The casino pays the software provider out of their own 60%.

I hope this is true

[LiveCasinoPartners]

I hope this is true

Absolutely, affiliates get a true % of the actual revenue without other fees taken out. (At LCP)

I have seen some other program take out "agent fees" whatever BS that is. You have to check the terms and do some test deposits to make sure your program is being honest with you.

As an affiliate I've caught a couple programs who didn't track the first or second tier correctly. I have to admit that they quickly corrected the problem, but I feel those "errors" should have been worked out before the release of the program.

[elgoog]

at LCP...ok
but the others????

[Puma]

Whats really gonna burn your brain is casinos that say they pay out 97% back to players.

So deposit 100 ( and assume player loses )
casino keeps $3.00
but somehow the casino manages to pay me 25% which is $25.00
And out of that $3.00 they managed to keep from the deposit they not only payed me $25 but they made money and payed their own bills.

Weird.

[FictionNet]

Hmmmm. You raise a good point there, puma.

I never know how far to delve with this figures. I'm not sure I always want to find out the truth

[FictionNet]

at LCP...ok
but the others????

Well, I think it's all of 'em - as far as I know. Put it this way, I've tested a good few casinos over the years and it's always worked out fine in the stats.

[baldidiot]

Whats really gonna burn your brain is casinos that say they pay out 97% back to players.

So deposit 100 ( and assume player loses )
casino keeps $3.00
but somehow the casino manages to pay me 25% which is $25.00
And out of that $3.00 they managed to keep from the deposit they not only payed me $25 but they made money and payed their own bills.

Weird.

The 97% payout is on wagers, not loses. So if you wager $100 the average return (payout) to the player is $97. If you were to wager that $97 again the average return would be approximately $94, and so on....

Most players play through their deposit much more than once.

Another way to look at it is that [on average] 3% of wagers (not deposits) go to the house, and from that you get your 30%. So Affiliates make somewhere in the region of 1% of the wagers the players they refer make. Obviously there's huge variability and it depends on the players...

[baldidiot]

To go back to the original question, I always assumed that the amount paid to affiliates was based on true losses before operator costs were taken out.

It should be in the terms and conditions for every program, usually where they define what the term "net loss" means.

[FictionNet]

It should be in the terms and conditions for every program, usually where they define what the term "net loss" means.

I think it is - at least I think I've come across losses being defined before in t&c.

[allfreechips]

I have had only a few affiliates that I tohught were not on the up and up and most of them are no longer in exsistance.

[satya]

at LCP...ok
but the others????

It's a mix of both, depends on the operator. Some operators still pay 30% (asuming that the aff is on 30% flat) of the players' losses or net revenue. The only deduction would be of the processing charges on the deposits. This is true for most of the big operators who own their software.

But there are many operators who would deduct the software fees, licensing fees, processing fees and a management fees before calculating the aff's revenue share %.

It is best to ask the affiliate managers how they calculate the revuenue share commissions. Especially those who offer high revenue shares of 50%.

[Renee]

From my experience, every single affiliate program will have it in their T&Cs how the revenue is calculated.

If you're getting 35% of net loss, there will be an explanation of what deductions are made. Obviously "net" is after stuff has been taken out..

If you're making 35% of the gross loss, then you should be making 35% of whatever the player loses, real and bonus money.

There are also other models apart from the revshare like the "theoretical model" (aka the Wager Model) which pays 35% of the margins (someone explained the margins and payouts above). So what that means is that if the casino pays out 97%, we keep 3% and pay you 35% of the 3%.. Which means you earn the same amount whether the player wins or loses on their bet. I think one of the other MGS groups has this model too, but I can't for the life of me remember which one..

The other point I'd like to make about the margins re pumas post, is that the 97% or whatever that number is, is the average. So not every single player will get 97%. It is the average payout for that month for the casino as a whole over all players who placed at least one bet.

One player may get 150% (which is where you have a winner) and one player may get 50%. Hope that makes sense.

[Tower_Stuart]

It is best to ask the affiliate managers how they calculate the revuenue share commissions. Especially those who offer high revenue shares of 50%.

This is very good advice. You should never assume that revenue is calculated in the way that you're used to or you expect it should be.

Always, always talk to your affiliate manager if you have any questions