Value of Bet365 Affiliate Account

[hahacomeon]

Hi All

We've been running our affiliate account for over 5 years now. Our revenue has increased by 40% in the last year and by about 10 times that since starting in 2012. We currently send 70-100 new FTD's per month consistently for the last 3 years , and our daily active players ranges between 300-400 - and has increased by 10% since 2016 ( depends what sporting event is on ). We've received an offer for the account entirely that I cannot divulge for obvious reasons but based on the figures above , what would you guys value the affiliate account at ? If you have any questions please do not hesitate to ask. If we would sell we would sell entirely and no longer send new customers .

Look fwd to some answers and figures

[TheGooner]

With 300-400 active players per day you appear to have good diversity ... but ...
You seem to have avoided the most pertinent information ... the value that it's paying out.

In 2016 - what was the high month payout, the low month payout - the average month payout.

If you are getting solid, reliable payouts then I would expect that you could expect to get 1x to 2x annual payout from an account ...
Maybe you could get more - but players do tend to drop away - and accounts diminish in value if new players are not added.

This is shown in the fact that you get 100 FTD monthly - but only have 300-400 actives (just a 3-4 month supply)

Just my opinion of course.

[hahacomeon]

@TheGooner really appreciate your reply. Am I correct in saying that you value the account at 1-2 x its annual earnings? ( I find this difficult to understand ) Let me add some further points. In 2014 for several reasons we where unable to send any new players for 9 months, and we still had 250-300 active customers per month which lead me to believe that there are only a small % that drop out. I do get your points. To add some detail ( as much as I can but not too accurate as I do not want to give too much away at this stage ) In 2016 our highest commission was €21,000 with our lowest being €5,000 but we averaged around €13,000 per month. When selling these things , do buyers take into consideration the amount of customer sign ups you also have ? This is important as we still get new customers depositing , even though they have signed up weeks/months ago. Another thing that i think needs to be considered is the fact that the strength of Bet365 is much stronger than another other Sportsbook brand in retaining customers. You are right in your point that even though we are sending new FTD's the actives are more or less remaining constant.

[zetal]

With 5K-6K FTD sports users of bet365,300-400 actives daily is a good result.
Value of paying out is depend on "sports" or "casino" users and the country where they come from.

With 300-400 active players per day you appear to have good diversity ... but ...
You seem to have avoided the most pertinent information ... the value that it's paying out.

In 2016 - what was the high month payout, the low month payout - the average month payout.

If you are getting solid, reliable payouts then I would expect that you could expect to get 1x to 2x annual payout from an account ...
Maybe you could get more - but players do tend to drop away - and accounts diminish in value if new players are not added.

This is shown in the fact that you get 100 FTD monthly - but only have 300-400 actives (just a 3-4 month supply)

Just my opinion of course.

[golfbettingsystem]

If I extrapolate your numbers based on what I've experienced with bet365 then I'd guess you're turning over somewhere in the region of £150-£250k per annum from bet365, depending on the quality of your customers. That could be wildly inaccurate if you've got some whales on board though.

From previous threads on the subject on here I doubt you'd get offered much more than 1.5 times that number to sell up - personally it's never felt like good business unless you desperately need/want to get out of the industry and that in itself might start alarm bells ringing with potential a buyer, hence the relatively low valuation.

[doovde]

Absolute minimum you should accept is 3x on average income over last 6-8 months. It's the account that is most valuable in your business to potential buyers purely because of the stability their affiliate program offers.

Not sure where 1.5x and 2x numbers are coming from. Maybe for small accounts with more risk attached but the more players active the more consistent earnings will be and the more you should expect as a multiple when selling.

Unless you need the money don't sell the account (assuming players sent are U.K. Based or similar and not from a questionable region where laws are complex or volatile and player value is less).

[TheGooner]

Not sure where 1.5x and 2x numbers are coming from.

You asked -so I'll tell you how I got to it.


It's because the numbers show there to be a big drop off in player activity.

The claim is 100 FTD a month (1200 a year) - and currently they only have 300-400 actives after 4 years of work?
If that's true then 2/3 of the players that did join and deposit in the last year have stopped - and so has nearly everyone earlier.

Given no other information - that attrition rate would not attract a bid of more than 12 months average (1x annual) from me ...
I would HOPE that I would recover my money plus make a profit ... but that's not a sure thing.

Given regular country restrictions (Poland went this week) and high player drop-off even paying 12 months for account only could be a loser.
If I am also getting the website that generate 100 FTD per month then obviously its a different story .. but just for accounts ????

----

Now YOU tell me - given their high fall out rate - why do you think you'd pay 3x (36 months!) of current earnings on an account?

How do you YOUR account looks at a program if you've stopped promoting them 36 months prior?
I know most of mine are close to zero - so I think paying 3x annual on accounts only is a losing proposition.

[doovde]

Averaging 20% decline year on year if no new players sent.

[hahacomeon]

Hi Guys - Important note to add - we did not send players for one year in 2014 and the actives remained consistent

[hahacomeon]

The player base is 98% UK -

Given regular country restrictions (Poland went this week) and high player drop-off even paying 12 months for account only could be a loser.
If I am also getting the website that generate 100 FTD per month then obviously its a different story .. but just for accounts ????

----

Now YOU tell me - given their high fall out rate - why do you think you'd pay 3x (36 months!) of current earnings on an account?

How do you YOUR account looks at a program if you've stopped promoting them 36 months prior?
I know most of mine are close to zero - so I think paying 3x annual on accounts only is a losing proposition.[/QUOTE]

[Sherlock]

How do you YOUR account looks at a program if you've stopped promoting them 36 months prior?
I know most of mine are close to zero - so I think paying 3x annual on accounts only is a losing proposition.

For me this is true unless it is bet365. I see results of my old tracker, not used over 36 months. It still has incredibly good results. I think that is the magic of bet365: player retention. Bet365 seems to be awful from the beginning but the time more than makes it up.

[golfbettingsystem]

For me this is true unless it is bet365.

Yeah, got to agree with this 100% - from the numbers we've run (albeit with relatively limited info from the bet365 reporting) the attrition rate with bet365 appears to be the lowest of all the bookies we work with and in some cases by a huge distance.

[golfbettingsystem]

Dear Sir/Madam,

We have recently launched our new Sportsbook and betting website.

We are interested in a possible collaboration.
Can you please advise us on how we can work together on this affiliation potential?


Best Regards,
Cleaven Farrugia
Affiliate Manager


Betinmalta
Globe Building, Ground Floor, Triq San Rokku, Zebbug, Malta ZBG2025

Ah, the copy & paste approach to acquiring new business

[TheGooner]

Yeah, got to agree with this 100% - from the numbers we've run (albeit with relatively limited info from the bet365 reporting) the attrition rate with bet365 appears to be the lowest of all the bookies we work with and in some cases by a huge distance.

And yet - they only have 300-400 actives from a referred base of approx 2000 (100 FTD a month) in the two last years.
That's a huge attrition rate of over 80% ... it's not low or slight ... it's major.
It feels like players that have been induced to play and deposit.

As I say - given nothing more than the headline numbers - paying much more than 1x annual would be a gamble for this account.

[Sherlock]

I would be also extra careful about the countries from where the players are. Bet365 is an Euro bookie ad as discussed elsewhere they withdrew from Portugal, Czech, Poland, Romania. I think they stopped paying for Greece (I would be happy to confirm or oppose that).They probably stopped for Bulgaria unless it is sportsbook. Probably I forgot something, but for sure this trend will continue, so I would be extra careful about this. Also the "Gooner's" ratio can be maybe partially explained by this.

[torrescarlos]

I would be also extra careful about the countries from where the players are. Bet365 is an Euro bookie ad as discussed elsewhere they withdrew from Portugal, Czech, Poland, Romania. I think they stopped paying for Greece (I would be happy to confirm or oppose that).They probably stopped for Bulgaria unless it is sportsbook. Probably I forgot something, but for sure this trend will continue, so I would be extra careful about this. Also the "Gooner's" ratio can be maybe partially explained by this.

Where did you got the info about bet365 stopped paying for Greece license?
Can anyone confirm this?

[hahacomeon]

And yet - they only have 300-400 actives from a referred base of approx 2000 (100 FTD a month) in the two last years.
That's a huge attrition rate of over 80% ... it's not low or slight ... it's major.
It feels like players that have been induced to play and deposit.

As I say - given nothing more than the headline numbers - paying much more than 1x annual would be a gamble for this account.

Why would we sell for 1x ? Might as well just wait for the year to end and get the 1 x anyway ? Anyone who would sell for 1x please speak to me - The traffic is 98% UK betting on Sports - 300-400 actives per day is pretty major - what you're not considering here is that they are Unique actives, they are not the same 300 returning day in day out. What you also fail to recognise is that there are other players on the account who will become active again throughout the course of the year therefore keeping the numbers consistent.

[Sherlock]

Where did you got the info about bet365 stopped paying for Greece license?
Can anyone confirm this?

Yup, I would also like to have confirmed it.
I recently have only GR tracker to see..
CEO from one big ad agency cooperating with them told me that few weeks ago. He said they sold/outsourced the GR operations to someone else. Links work, but do not track.

Also I heard on cyprus they now use bet365.com.cy with Greek language, but this should track.

[torrescarlos]

Yup, I would also like to have confirmed it.
I recently have only GR tracker to see..
CEO from one big ad agency cooperating with them told me that few weeks ago. He said they sold/outsourced the GR operations to someone else. Links work, but do not track.

Also I heard on cyprus they now use bet365.com.cy with Greek language, but this should track.

Operations means they will cancel the services for Gr or just outsource their customer services/payment etc ?

[MrProno]

Hi,

Key data to value the account is how many comission this account generate (monthly income for the last 12 months) ? and what was de website that generate the customers.