Casino Affiliate

[Joeldysmith]

Hi,

 

I wonder how can a casino offering their profit share in huge amount (more than25-35%)? I think our senior here can give me a great answer.

 

I think the best options for the fair casino is to give a share depend on their house edge or giving a lower profit share (should be below house edge ). Am I right?

 

 

[ValDes]

Hi,

 

I wonder how can a casino offering their profit share in huge amount (more than25-35%)? I think our senior here can give me a great answer.

 

I think the best options for the fair casino is to give a share depend on their house edge or giving a lower profit share (should be below house edge ). Am I right?

 

No, you are not. The revenue share given to casino affiliates is based on the generated profits on a monthly basis. 

[Joeldysmith]

Yes. I understand that they count them base on monthly basis. 

 

For ex:

XCasino is offering 60% casino profit on their monthly revenue with most of casino games have a house edge below 5 percent. If this casino has 2 major affiliates, 1 affiliate has manage to generate 200,000.00 usd while the another affiliate generate -190,000.00 usd. So total profit for casino is 10,000.00 usd.

 

This casino will pay their first affiliate with 120,000.00 usd while their profit is only 10,000.00 usd. This is a lost for them, right?

 

And in the long term if they share more than 50% of their profit, they will lose their all money to affiliate.

[ValDes]

Yes. I understand that they count them base on monthly basis. 

 

For ex:

XCasino is offering 60% casino profit on their monthly revenue with most of casino games have a house edge below 5 percent. If this casino has 2 major affiliates, 1 affiliate has manage to generate 200,000.00 usd while the another affiliate generate -190,000.00 usd. So total profit for casino is 10,000.00 usd.

 

This casino will pay their first affiliate with 120,000.00 usd while their profit is only 10,000.00 usd. This is a lost for them, right?

 

And in the long term if they share more than 50% of their profit, they will lose their all money to affiliate.

 

I'm afraid there's nothing correct within your post...

 

Casinos track down the revenue generated by the players coming from particular affiliate. If let's say casino X got 100 players during the month from affiliate Y, Y receive let's say 30% revenue share and those 100 players generated 10000 net profit during the month, then Y will get from X exactly 30% of 10000 = 3000. Simple as that. 

[Joeldysmith]

Hi Valdes,

 

Thank you for your reply. No, i think it's not that simple. Let us say there is two major affiliate group. One group is generating profit for the casino, while the others give a negative profit to casino (total casino profit is 1000 ). The first group give 2000 profits and the second group -1000 profits. Then the casino didn't pay only 30% x 1000 = 300 But rather pay 30% x 2000 = 600. ( I believe the distribution is not totally random and the casino is fair ).

[Luciana]

Hi Joeldysmith

 

Why do you asking? Are you an affiliate or..?

[cocopop3011]

I'm afraid there's nothing correct within your post...

 

Casinos track down the revenue generated by the players coming from particular affiliate. If let's say casino X got 100 players during the month from affiliate Y, Y receive let's say 30% revenue share and those 100 players generated 10000 net profit during the month, then Y will get from X exactly 30% of 10000 = 3000. Simple as that. 

 

How are u so bloody knowledgeable all the time! I love it

[Th3 Runn3R]

This topic made my eyes swirll

It doesn't make any sense. Your way of thinking (Joeldysmith) how it works doesn't make any sense because if you were right in the end there's no online casinos left. I think you're wrong because there are a lot of online casino that still running since their establishment. For example : microgaming casinos Crazy Vegas etc, this casino is more than 5 year old and still running.

[Luciana]

That's why I don't understand this thread.

 

I know how affiliates work, as Valdes explained, but Joeldy's explanations are so confusing

[cocopop3011]

That's why I don't understand this thread.

 

I know how affiliates work, as Valdes explained, but Joeldy's explanations are so confusing

How affiliates work confuses me at the best of times, but this thread confused me even more too!

[hajnrih]

A casino is never in minus. The affiliate site gets his revenue from the net profit like Valdes said. If an affiliate site has 0 profit for the casino they get 0 money. Most of casinos don't carry a negative balance for the affiliate sites. So every month is a new beginning for the affiliate site. If a casino has 10 000 net profit from an affiliate site they will payout the commision of 20, 30 50,60 % from the net profit the affiliate site provided to them. So they are always in plus. Net profit is deposits - withdrawals, - no deposit winnings etc. The casino is always in Plus. That's a fact!

[ValDes]

Hi Valdes,

 

Thank you for your reply. No, i think it's not that simple. Let us say there is two major affiliate group. One group is generating profit for the casino, while the others give a negative profit to casino (total casino profit is 1000 ). The first group give 2000 profits and the second group -1000 profits. Then the casino didn't pay only 30% x 1000 = 300 But rather pay 30% x 2000 = 600. ( I believe the distribution is not totally random and the casino is fair ).

 

Then the first group will get 30% of the net profit of 2000= 600. And the second one will get a big fat zero and this only providing the fact if the casino affiliate program is not applying something called "negative carryover".

[ValDes]

A casino is never in minus. The affiliate site gets his revenue from the net profit like Valdes said. If an affiliate site has 0 profit for the casino they get 0 money. Most of casinos don't carry a negative balance for the affiliate sites. So every month is a new beginning for the affiliate site. If a casino has 10 000 net profit from an affiliate site they will payout the commision of 20, 30 50,60 % from the net profit the affiliate site provided to them. So they are always in plus. Net profit is deposits - withdrawals, - no deposit winnings etc. The casino is always in Plus. That's a fact!

 

Agree to some extend. However, you should be in aware that your last statement is correct ONLY if you mean that the casino will be ahead in a long term. Cause I know dozens of cases when a casino was on a loss for a month or two and when I say on a loss I mean down with a quarter of a million.

[hajnrih]

Yes and affiliate site was rarely on a 0 profit for 2 moths in a year 

[ValDes]

Yes and affiliate site was rarely on a 0 profit for 2 moths in a year 

 

My dear Macedonian friend, let me assure you that the affiliate business is NOT an easy task at all! Especially in the last couple of years when the competition became not just serious, but even ferocious. Let alone the insane big profits which most people just dream about all the time. It takes not just months, but years to create and develop a successful website in terms of casino affiliation and this process requires enormous amount of time, efforts, money and decent people and ideas of course.

 

If you still have some doubts you could try to yourself. We could even help you at the beginning , you are a neighbour after all.

[hajnrih]

hhh the only reason why I would get into that business is to have free deposit money. But than again I have that here with the review contest so why bother 

[ValDes]

hhh the only reason why I would get into that business is to have free deposit money. But than again I have that here with the review contest so why bother 

 

Hahah, indeed, why even bother when AskGamblers takes care of everything for ya!

[hajnrih]

Well there are a few things I would improve and add for more profit as an affiliate site, but you'd have to hire me to do that     

[ValDes]

Well there are a few things I would improve and add for more profit as an affiliate site, but you'd have to hire me to do that     

 

Deal ,when you could start?

[hajnrih]

Just after I finish this bottle of 21 year old rakija with my friends 

[ValDes]

Just after I finish this bottle of 21 year old rakija with my friends 

 

Now I'm really jealous!

[hajnrih]

Oh  it's like nothing I tried before. And we have about 15 liters of it

[hajnrih]

 

Na zdravje   

[hajnrih]

and we got from affiliate sites to Rakija. Only on the Balkans   

[Luciana]

Hahahaha rakija in the bottle of Johnnie Walker, what a trick

 

Na zdravje, ziveli, cheers, salut!

 

PS. There's an ocean of affiliates and ocean of online casinos. That's a tough job, everybody want a piece of cake in this industry!

And also it's hard to be creative nowadays, when sooo many things already exist.

 

I think that for running your casino you need to have a looot of money to pay the winners, good strategy, retention program and management.

For your affiliate site, some money, but more time to write, examine, make deals, new ideas.. simply to grow with content, visits, trust etc.

That's just my opinion.