Bonuses - Destroying Your Affiliate Earnings Too?

Kristine

Affiliate Program Representative
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What do you mean by "PAY the money in"?

I know when we give a bonus we only have two possible costs:
(1) revenue share paid to supplier on the bonus funds. E.g. if we give a $100 bonus to a player and the player loses the entire $100 then we are liable to pay the supplier $10 assuming our agreement with them is to pay 10% of player losses on bonus funds. In this case, we don’t deduct this from the affiliates earnings and the actual cost is $10. If some programs are deducting the entire $100 or $10 then this is completely fine assuming you agreed to this. (2) payment to player if they meet the WR and withdraw. So, if a player meets the WR on a $100 bonus and withdrawals $100 then we pay the player $100, pay $10 less to supplier (assuming 10% rev share agreement with supplier) and $25 less to affiliate (25% rev share with affiliate). Those are the only costs I am aware of. But it can add up especially if the player meets the WR and starts playing progressives or themed games which have a higher cost.

We offer a 50% rewards bonus on Friday and Monday and a 20% daily bonus and this is very aggressive. So for us bonus costs are high but the net effect is that profits are higher for both the casino and affiliate, its just earned over a longer period of time.

I think one of the bigger differences between then and now is that many suppliers are starting to charge a reduced revenue share % on bonus play. As an example, we recently negotiated a new contract with a certain supplier and they are deducting a flat 10% off GGR to help reduce the cost of bonuses and in return we give them more exposure. There are even some starting to charge 0% on bonuses but it depends on the contract and bargaining power. So, I think the actual costs of bonuses are going down vs. several years ago.
 
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TheGooner

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They pay that money to the platform to deposit (real money deposit), then that money is used with a wagering requirement.
It really sucks, IMO, but it isn't like the old RTG days when they used it purposefully to reduce commissions (my opinion, anyway)

Fine and dandy!

However, when a program closes a players account (due to inactivity or any other reason) then the residual bonus money needs to be reverse processed through the system to re-credit the associated affiliate with potential revenue.

The way it works at the moment ...
1/ Player deposits $1000 and gets $2000 in credits.
2/ Players loses (say) $1500 - and stops playing (the money is not withdrawable with large 50x rollover - player gives up)
3/ The remaining $1500 (bonus) sits there until the account is closed and forfeited.

The casino makes $1000 real money ... less any costs associated with the $500 bonus money used and reclaims the $1500.
But the affiliate calculation is stuck at $1500 (player losses) - $2000 (bonuses) = -$500 net so no payout.

This is why affiliates are seeing negatives on large bonuses - even though casinos are making money overall.
The fees, bonuses and charges are so flawed ... they are gamed by unscrupulous programs ...

The way bonuses are handled at present, especially with residuals sitting untouched and/or account closures, is a "loophole" that benefits the operator
(which is why it hasn't been immediately fixed).
 

inspiration

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That is why ALL audits are incorrect if you are checking deposits only while casinos can manipulate all cash flow with bonuses.
Earnings are deposits minus withdrawals minus fees not bonuses.
You will not see bonuses in financial reports unless you are willing to cook the books... .
 

kazak

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Stats in PP very different, what PP we are considering?
 

AussieDave

24 years & still going!
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@getitontable - your class act. You don't go away empty handed. For your dumb spamming attempt your site will receive blacklistings. Enjoy your day :D

Hiding behind CloudFlare...lol

Site hosted at: m247.com

xxxxbonus.com 195.12.49.174 UNITED KINGDOM
xxxxbonus.com 195.12.49.173 UNITED KINGDOM
 
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Guard Dog

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I removed the spammer. So - that thread is now missing.... but you are correct and that is always stupid spamming, we are not dumb webmasters here.
 
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