Guide to Selecting Affiliate Programs

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==Evaluating Affiliate Program Compensation==
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There are a variety of factors that are important in terms of evaluating compensation plans from affiliate programs.
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* Do they offer payment methods you can accept.
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* Do they carry forward losses if you work on a revenue share arrangement.
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* Do they offer revenue share for the life-time of the players who came through you.
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* Do they bundle profits and losses from multiple gaming sites together in calculating your earnings.
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* Do they have minimum payout amounts and what are those amounts.
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* How large are payouts at the revenue level you expect to generate (either as a percentage of  or revenue per acquisition).
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* For CPA arrangements is there a minimum player deposit or other requirements to qualify for the agreed player acquisition fee.
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Most affiliate programs offer revenue share arrangements and some offer CPA arrangements.
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It is important to realize that the amount of money you will earn is based on the product of the number of players that sign up through you and the value of those players. So a program with lower earnings paid per player can actually represent a better deal if it does a better job of converting potential players to real players.
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Generally revenue share arrangements will pay more over the longer term. That is because it is a sound business decision for an operator to share more of the revenue earned with an affiliate when the risk around the revenue to be earned is also shared with the affiliate.
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Sometimes, however, fixed acquisition fees can be better for an affiliate. If you are trying to maximize revenue in the first month or two after a player is acquired rather than over the longer term this will be true. There is also not the long term risk for an affiliate if an operator's finances suffer, or if regulatory pressures result in a decision to abandon players you referred.
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==Evaluating Affiliate Program Terms and Conditions==
==Evaluating Affiliate Program Terms and Conditions==

Revision as of 12:28, 10 December 2009

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