please help me understand rev share

[itsblitz]

hi could anyone please explain how the rev share system works, i thought i understood it untill i actually started to get conversions in the last week. I thought that if a person clicked through one of my links, registers a real account and deposits £100 i would get 25%(or whatever the rev share program is for that casino) of that if they lost and didnt withdraw within that month. But what im seeing in my affilite dashboards is not this, for example i seeing a percentage of net gaming, i have converted a player at a rewards affiliate casino that shows he/she played $16.61 giving me $0.22 in earnings. Also i have been seeing a few players signing up to william hill (affutd) but not depositing and im getting figures like -$0.11, im guessing these are people using the no deposit bonus they are offering, but i cant work out if a player deposited say for example $50 and went on a great run on slots making about $5000 in wagers and then losing, do i get 25% of this?. Im sure this is a really simple question to answer for afiliates that have been doin g this for many years but im confused, please help me out by explaining this
cheers

[grem]

revenue share is your commissions earned on the share of the revenue generated. That being a player lost £100 while wagering £5000. At rewards affiliates you have a wager share model that is based solely on the wagering and has no effect if the player wins or loses their money.

[itsblitz]

sorry if im sounding a little slow here, its late, but im still not getting it, at rewards affilites if a player deposits £100 i get 25% of that no matter if he wins or loses? is this correct? and if under a rev share program with lets say affutd, a player deposits £100, wagers £5000 on slots before losing, i get 25% of the £5000, this cant be correct can it. Sorry in advance for being dumb here, but if you could break it down for me id really appreciate it

[pokerente]

I still dont get it how casinos can actually afford to play their affiliates by turnover... but it looks promising!

[ElaineGardiner]

Hi itsblitz,

I can't speak on behalf of affutd (as used in your example), however according to the example above for revenue share,you should receive 25% of £100. No matter what the customer wagers you will receive a percentage of the Net revenue of the business.

So for example:

Player deposits and wagers 100... wins 1000
Player wagers 1000...loses 1000

In terms of revenue for the business it will look like this:

+100 -1000 + 1000 = 100 .

Therefore you will receive 25% of 100 = 25

This is a simple example without bonuses etc , but i hope this helps you out.

[TheBoyMitchell]

A revshare works as a calculation of the TOTAL REVENUE generated by the player. Thats why its called RevShare.

So if you are promoting a casino and are being paid 30% RevShare, you will get 30% of the cumulative amounts that all the players lose in that casino.

So, if one person signs up and deposits and loses £100, you should in theory get £30 as your RevShare. Currency Conversions might alter this a little (ie if your player is playing in Euros but the reporting is done in Dollars).

If you get many people signing up and playing then all wins and losses are calculated together to give you a final figure, and you earn 30% of that. So whilst you might get excited in the middle of the month because you have £10000 of RevShare due to you (which would be nice), if someone then wins, you'll see that balance reduce accordingly.

Here is another example;

Month to date (1-13 April 2011) - Amount Wagered £10236.71 Net Profit £892.55 Revshare £267.77

So, so far this month your players have wagered £10236.71 and whilst playing (remember that wagering is not the same as depositing) have lost in total £892.55. You have currently earned £267.77 - 30% of the total losses.

Now, lets say that at the end of the month the figures look like this

Month to date (1-30 April 2011) Amount Wagered £72511.44 Net Profit £45.22 Revshare £13.56

You can see from this that in the second half of the month someone played a lot (hence the increase in Wagering) but also won a little bit, reducing your Net Profit and consequently reducing your RevShare.

Its also important that is you are working on Revshare that you find out whether the casino operates on a No Negative Rollover basis. This means that should a player win and your Net Profit is negative...

Month to date (1-30 April 2011) Amount Wagered £45977.08 Net profit -£1427.36 Revshare -£428.21

You would not only get paid nothing for April, but your starting balance for May would be -£428.21, meaning that you would have to bring that up to a positive amount before you started earning again.

Some casinos operate this and some dont. So check.

Finally, re the AffUtd flucutation in stats - they do seem to remove a few dollars when a player registers and takes the free £30 no deposit bonus, but as far as I can see that goes back into your balance when they lose it.

Hope that this helps.

[TheBoyMitchell]

I should also add that each casino/operator works in its own way, and there may be a couple of tweaks on this depending on the operator, but as a general rule of thumb its how Revshare works

[itsblitz]

thats awesome, thank you, totally makes sense now