Casino Affiliate ProgramsBy: Adam Baker, Thursday January 15th 2009
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In the simplest of terms, casino affiliate programs are "Refer A Friend / User or Visitor from a Website" transactions done on a massive scale by one entity. That entity is known as the affiliate. The affiliate directs traffic to an online casino (or casino group). The online casino compensates the affiliate for doing so. The system that manages this entire process is known as a casino affiliate program.
The casino affiliate, in order to be successful, should have the capacity to draw traffic. The affiliate can be the webmaster of a web site or web portal or a group of people with their independent web sites or web portals. From their web sites they transfer potential players to the online casino via adverts (banner ads) or links. The casino affiliate program sets up this transfer and keeps track of the number of people who have visited the online casino from the affiliate, the number of people from this who have met the required terms of registering at the casino and deposing funds and also of the payments due to the affiliate. Due to the high cost of setting up casino affiliate programs, they are worthwhile only if a high level of traffic transfer can be achieved. In order to realize this casino affiliate programs are usually multi tiered. There are affiliates of the affiliate who drive traffic to the affiliate’s site for compensation and so on.
There are several methods of compensating affiliates on the Internet. However as far as the online casino industry is concerned two methods are commonly used. One is the Cost Per Acquisition and the other is Revenue Share.
Cost Per Acquisition (CPA):
Under the Cost Per Acquisition system the affiliate gets paid a fixed amount for each person he refers to the online casino. The amount is due to the affiliate only after the referred person makes a deposit of the agreed amount at the online casino. In this system there is uncertainty about the referred person staying on at the online casino and therefore online casinos an immense amount. But the affiliate is assured of the agreed amount whether or not the referred person remains loyal to the online casino. Additionally fluctuations in the amount of revenue coming in from players referred on the Cost Per Acquisition model do not affect your overall earnings with the online casino. Another thing worth mentioning here is that in general the Cost Per Acquisition compensation scheme is tiered and affiliates can earn more on a per player basis the more players they refer to the casino.
Under Revenue Share the affiliate gets paid a percentage of the losses incurred by the referred player at the online casino. This arrangement continues for the lifetime of the player with the casino, which means that the affiliate keeps getting paid till the player keeps playing. Revenue share terms are more generous because the online casino pays the affiliate from its earnings. The flip side for the affiliate is that he gets paid a measly amount if the player does not stay on at the casino after making his initial deposit. Successful affiliates are able to draw in a lot of traffic and prosper far more on this model then the Coat Per Acquisition compensation model. Typically one or two real big players can account for 40%+ of an affiliates overall earnings with any given online casino affiliate program. If you're just getting started in the industry and are looking to be here for the long haul we suggest that you go the Revenue Share route at over time it will be far more rewarding then Cost Per Acquisition model.
If you're interested check out these top rated affiliate programs to get started:
Whether you're a newbie or a well seasoned affiliate in the online gaming industry below are some of our top recommendations for affiliate programs we feel are top tier and worth working with.
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