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Hi,
Just a quick question on commissions. What would you, as an affiliate prefer revshare or a tiered CPA structure, incremental based on performance?
i am trying to gauge the opinion of the affiliate as well as doing the old competitor analysis as you are the people that drive the business and we want to reward appropriately!
We have a couple of commission models set but in two minds as to which to choose!
Thanks for your time.
M :hattip:
I always go with revshare. For poker I sometimes do CPA.
If you choose CPA and your players are not good quality the program will change you to rev share.
So they will actually pay a CPA only if that is lower or close to the rev share. In long term you will likely loose on CPA.Why not offer a choice?
Most affiliates who have been around for a while will likely choose rev share.
Like Mihai said, CPA is bad for the casino if the player has a low value, and bad for the affiliate if the player has a high value. Someone always loses.
However, often times newer affiliates like the immediate reimbursement because they can accrue capital to further their site.
I would surely offer a choice.
thanks for the input, much to chew on there and keep adding your thoughts on this topic as we take them very seriously.
:Nod:
Definitely rev share. Affiliates that are in it for the long run recognize the value of building a player base and continuing to build that base. From your perspective, I would think that would be more attractive since the affiliates will stay engaged, rather than looking for the quick buck and moving on. I would think this would be especially good if you are starting out since you only share in what the player brings in, rather than setting a bounty for a first depositing player. That player may only bring in 50 bucks. I’m sure everyone here has an opinion on this, but some food for thought anyway.
How long does it take on average for a rev share Poker player to equal CPA? Say you’re on a site with 100$ CPA and 25% rev share. Since the bonus is substracted from your share, it must take a long time before players get up to 150$ worth of revenue? Assuming the bonus is 50$.
Party Poker for example, with high sign up bonus and frequent reloads. I’m convinced that their conversion rate is high and, as a recognized site, a lot of people sign up. But my calculations go like this : 500 raked hands to unlock the 100$ bonus => Rakes start at 50 cents (when the pot reaches 5$) => 500×0.5 = 250$ in player rakes / ~9-10 players per table => 25$ for your player => 25$ x 0.25 (your commission) = 6.25 commission – 100$. So under the rev share, a bonus chaser would start at -93.75$ ?
To be fair, taking into account that some pots may reach as high as 1$ (talking in terms of small stakes players, which are mostly the bonus hunters that leech Party), let’s say that the 500 hands produce 400$ in player rakes. 400 / 10 = 40$ rake for your player x 0.25 = 10$ commission – 100$, still starting at -90$ ?I like revshare the most one whale can be same as 100 players in income.
For casinos/sportsbetting yes, but I’m not as sure with poker.
always go revshare imo…
JackTen wrote:How long does it take on average for a rev share Poker player to equal CPA? Say you’re on a site with 100$ CPA and 25% rev share. Since the bonus is substracted from your share, it must take a long time before players get up to 150$ worth of revenue? Assuming the bonus is 50$.Party Poker for example, with high sign up bonus and frequent reloads. I’m convinced that their conversion rate is high and, as a recognized site, a lot of people sign up. But my calculations go like this : 500 raked hands to unlock the 100$ bonus => Rakes start at 50 cents (when the pot reaches 5$) => 500×0.5 = 250$ in player rakes / ~9-10 players per table => 25$ for your player => 25$ x 0.25 (your commission) = 6.25 commission – 100$. So under the rev share, a bonus chaser would start at -93.75$ ?
To be fair, taking into account that some pots may reach as high as 1$ (talking in terms of small stakes players, which are mostly the bonus hunters that leech Party), let’s say that the 500 hands produce 400$ in player rakes. 400 / 10 = 40$ rake for your player x 0.25 = 10$ commission – 100$, still starting at -90$ ?let’s say you sign up 100 players with CPA and not one single player makes a deposit. is that fair to the casino? do you think they’re really going to pay you for any of those joins?
no one will ever pay you more than your traffic is worth…so whether you get shaved, or whether you get shaved and switched to revshare before you try it somewhere else….the only fair way for you and the casino is revshare.
applies to every industry…there’s no way to beat your sponsor.
JackTen wrote:To be fair, taking into account that some pots may reach as high as 1$ (talking in terms of small stakes players, which are mostly the bonus hunters that leech Party), let’s say that the 500 hands produce 400$ in player rakes. 400 / 10 = 40$ rake for your player x 0.25 = 10$ commission – 100$, still starting at -90$ ?Which is why you don’t really want bonus hunters.
Most of them are the “fishes”.
You want the people who play for the real money – the pots, not the bonuses.
They spend money to make money, and they are worth more than your $100 a month, month after month after month.
If they get sick of PP and they had good service and info on your site, they will come back to you to find another room to sign with.
It all depends on who you attract to your site and whether you give them what they need and want.
‘For casinos/sportsbetting yes, but I’m not as sure with poker.’
I fully agree, with casinos and sportsbetting i’ve had players that have earned 5 or 6 figures. Meanwhile with poker I sometimes have an average player value of $3 or less, depending on the poker room.
