I started a gambling affiliate website a few months ago.
Some of the gambling sites deduce funds from the affiliate's commissions, like the bonuses they give to the gamblers, fees, fees commission and other kinds of sums from the gamblers deposits.
Can anyone tell me what sums should I expect the gambling sites to deduce from my revshare and about which sums should I protest?
This really differs from brand to brand, but usually sites deduct something in the 20-30% area in fees
As mentioned above it differs from brand to brand but also from market to market. On regulated markets the tax is also deducted and that takes a bit out of the revenue.
When negotiating affiliate deals we always ask for a table of deductions. This also has an impact on how many percent we ask from the net revenue. 55% RS might sound great, but if they deduct 40% in fees we are better off taking a 50% deal and lower deduction with another brand.
So make it a habit to ask for a deduction table before agreeing on a deal.
Best of luck to you!
50%?
Not sure where you came up with that figure, but I do not think you will get a true 50% from brands worth promoting.
Rick
Universal4
Some sponsors will deduct whatever they can, real & imaginary, and then some more :lolollicense fee, admin fee, banking fee, etc etc
Fees are the worst enemies of any given affiliate:
- tax fees.
- providers fees.
- big winners ' fee.
- fee from the fee.
- fee for the software provider of the affiliate panel ( if company does not have one made in-house).
- some have diferent fee for any given product from the vertical ( sports, casino, poker, e-sports and virtuals.
So, be welcomed to the labyring and enigma called "deductions". :)
Well the point was to calculate the fee into any given deal and that even a 55% RS deal can be fairly low if the brand deduct to much fees.Quote:
Originally Posted by universal4
50% might be a bit high but my point was something else :).
Having said that we actually have multiple deals on 50% but I think that all depends on the market and traffic value brought historically.
Sorry for any confusion.
It annoys me that so many programs try to hide the true figure your getting, pointless offering me 50% RS if you deduct 30% in fees beforehand. Most programs will deduct around 20% to 30% in fees in regulated markets. But it depends on your traffic, if you can send 100+ depositing players each month, then you can push for betters deals.
You can usually work it out by program if you can see the deposit figure by user in your stats. A lot of deposits will be in simple denominations like 10 pounds/euros/dollars, so when you see a very similar net revenue number from a number a players from those 10 pounds/euros/dollars deposits - i.e. they lost that amount - you can then do the maths.
From what I've seen for the UK market, deductions range between around 25-40% in general.
This is something I've been trying to get affiliates to consider for a long time, and I'm glad it's finally catching on.
Apart from regulated markets taxes, we don't deduct any fees. And the reg market taxes are pro rated based on the affiliate's commission percentage.
So if the POCT is £100 on a player, and the affiliate is on 35% revshare, the affiliate will only pay £35, and we will cover the other £65 of the tax. There are no other fees in our program, so the revshare percentage quoted is true revshare.
If a player outside a reg/taxed market loses a $100 deposit, an affiliate on 35% revshare will earn $35.
The number of times I've explained this with examples, and shown how 35% with us will earn them more than 50% with another program, and had an affiliate still tell me that another program is offering them 50% revshare so they won't promote us unless we can offer the same... well if I had $100 for each of them I probably wouldn't need to work for a while. The revshare percentage seems to trump over the amount of money that ends up in the affiliate's pocket. I don't quite understand why that's the case, but it's certainly why the programs extort it.
For anyone that's interested, AGD has a true revshare audit happening over there so you can see the actual revshare percentage you're getting with each program after the deductions.