Maximum Rev Share?

[555]

Hi everybody!

How common is it to negotiate a higher rev share deal than the maximum deal the casino has on their webpage? Do people do that or should I be happy if the AM offer me the highest deal they advertise?

Thanks!

[F-L-C]

People negotiate but you have to be realistic with your negotiation

[DaftDog]

If you can deliver the goods then they too can deliver the goods.

[Miles_FTA]

I agree it comes down to what you can deliver if you can deliver and show you can Programs will be willing to go to the ends to make you happy and Negotiate a higher rate if affiliate programs see you have potential and can deliver they would be more willing to negotiate..

From experience and from being around a long time affiliates that prove they have staying power and deliver always stay around long and their businesses thrive some affiliates promise the world and cant deliver and these guys damage the chances of good affiliates in getting the best deals .

Also remember that most programs will offer you large commission to start say 60%,50% etc for the first 3 Months and then revert to the standard amounts so if you can take advantage of these specials and in the 3 Months you do well for them you will get a good deal.

I truly think that at 35% - 40% Most casinos could still make money and make affiliates happy but more than that it is very tough for both parties to be smiling.

At the end of the day its a partnership and has to be fair for both.

[555]

I truly think that at 35% - 40% Most casinos could still make money and make affiliates happy but more than that it is very tough for both parties to be smiling.

At the end of the day its a partnership and has to be fair for both.

Many times the alternative is not to promote the casino at all. 50% rev share is better than not getting promoted at all? I mean, the casino does not lose in any deal since the net rev is usually calculated after all costs (bonuses, chargebacks, admin, license etc etc) are deducted?

[Renee]

Many times the alternative is not to promote the casino at all. 50% rev share is better than not getting promoted at all? I mean, the casino does not lose in any deal since the net rev is usually calculated after all costs (bonuses, chargebacks, admin, license etc etc) are deducted?

This is simply not true 100% of the time. It depends on the deductions an affiliate program makes.

For example, if like our program the only deductions being made are bonuses and taxes (chargebacks which are also a cost to the casino), anything above 40% is not profitable for us. Don't forget things like processing fees, royalties to the software provider (which are a lot higher than one thinks they are) as well as paying staff, electricity and other bills etc. Yes, the affiliate program is paying a percentage of the loss, but what about no negative carry over? They are losing money there too.

So to answer your question, no 50% is not better than not promoting at all if 50% is not profitable for the program.

Myron said it perfectly - if you can prove to the program that your traffic is worth more than the standard (doing it within the first few months where there is a higher commission percentage welcome offer is a good idea), they will be happy to offer you a higher percentage.

[MMM]

I know it sounds strange, but I doubt programs that offer permanent 50%. Either they deduct stuff which makes the 50% more like 25% or something else. Otherwise the ends just don't meet.

Of course I mean permanent 50% and not for the first month, which is completely meaningless.

[555]

Well, all the percentages are different from affiliate company to company. I work with 10 different casinos and they all have different revenue share models and 30% for one casino is totally different from 30% of another.

So just saying a percentage is really pointless without knowing the deductions, fees etc imo.

[MrBinaryAff]

40% is perfect for affiliates. If you can deliver good traffic/new players every month, then deals ~15-25% are too low. If someone gives you 50% straight away, that probably means that casino will close in couple of months

[RacingJim]

It really depends on the program , one program for example is very hard to get to go above the standard 30%, but it is clearly the best affiliate program in the industry so you'll still likely make more money than at other programs where you might get 35-40%.

Don't be afraid to ask the question though and try to set up a negotiation, you should be looking to maximise your business in every way and getting an extra 5% can be a big deal if you're doing good numbers. Also hybrid deals such as rev share + CPA can be good if you have a load of traffic and are driving lots of signups but the bonuses are denting your revenue each month.

[universal4]

I agree with Miles and Renee made some good points that some affiliates may not stop to think about.

At the end of the day its a partnership and has to be fair for both.

Granted I will sometimes look closer at programs that are offering higher revshare, but I am more concerned that the program is being fair to ALL Affiliates, especially the small affiliates.

Why? Simple, if a program is not being fair to small affiliates, and has cookie terms or quotas that hurt the small affiliate, in my opinion it is only a matter of time before they are making even more drastic changes to their terms making it even more difficult for ALL affiliates to make a buck, thus also hurting the bottom line of the casino group.

If the group, or at least the affiliate related traffic is NOT profitable for the group, the group has more chance of dropping affiliates completely, making changes to totally screw affiliates, or worse going out of business.

Time and time again the past few years we have seen groups that had terms or procedures that were somewhat hurtful to smaller affiliates eventually make changes to hurt the medium and mid-size affiliates that now are only profitable to the very largest of affiliate pushing big traffic.

Rick
Universal4

[wonderpunter]

One of my best performers pays 20% but I sign up 4 times more than most programs... so if you compare apples with oranges.. 100 clicks 10 sign ups @ 20% or 100 clicks 1 sign up at 50%... then there is retention, maximum deposit limits.. ease of deposits etc etc --- dont just look at the percantage

[universal4]

Great points wonderpunter, another reason that revshare percentage alone should not be the deciding factors.

my guess is that in your example, the group is treating players well and is extremely fair to all affiliates.

Rick
Universal4

[555]

One of my best performers pays 20% but I sign up 4 times more than most programs... so if you compare apples with oranges.. 100 clicks 10 sign ups @ 20% or 100 clicks 1 sign up at 50%... then there is retention, maximum deposit limits.. ease of deposits etc etc --- dont just look at the percantage

In that case it is probably even more important for you to raise your deal (if 20% is the minimum % of the program).

[Miles_FTA]

In that case it is probably even more important for you to raise your deal (if 20% is the minimum % of the program).

I dont think that is what Wordpunter is saying all i could?

To me it reads that he is happy with 20% as the program he is working for converts well and retains his players well .. If he wanted more % he would and probably could get it form that partner but they are doing well by him on 20% ..

Again its not the % that's important its the converting and retaining of players so if the chosen partner can do both well you could do very well as the standard % they offer .

[wonderpunter]

In that case it is probably even more important for you to raise your deal (if 20% is the minimum % of the program).

Actually it's probably the only place that does not negotiate.. but they are the best so I stick with them I look at earnings per click over %, Some of these places go all out to provide extra staff better odds or higher winnings which all come from the pot, so by giving the player back more increases my overall earnings, players stick around too.. They are in a unique position, whats important to me is what my paycheck comes to every month, I have places that pay me 50% but earnings do not compare and players usually jump ship after $ is spent

[FootballPredictions]

I see no problem in negotiating for a better deal. If you can provide a good amount of FTDs a month and those players are of high value, why not?

Remember, there are a lot of casinos who need to compete with each other, you can always switch your traffic to a casino who offers better value.