Hi guys,
Appreciate the feedback here.
Tryme1, I think inspiration's post should back up our claims that Sportsbook affiliate program's run on much tighter margins than affiliates might think. The fact is, the industry is very competitive, and as such, programs have bid away their margins considerably. Just look at the other Australian programs that closed over the last year. Again though, we need to emphasize that the changes that were put into place were specifically aimed at certain abuses that happen in the industry, and have nothing to do with the profitability of affiliates that promote and send players in good faith. Centrebet has excellent overall player retention and profit from the majority of affiliates. However, because of the tight margins discussed (and considering the earlier example of paying for profits while absorbing 100% of losses), a few bad apples can significantly affect the overall profitability.
Dominque, I understand your concerns, but again, the quotas were never meant to be put into play all affiliates, and especially not for casino affiliates, because that area of the business does not suffer from these abuses, which are specific to Sportsbook. Allow me to explain more clearly the issue:
Affiliate with low traffic site refers 3 players in 1st month. In the following 11 months, they refer no players. Over those 11 months, half the time the players generate positive revenue, and half the time negative. When they generate positive revenue, CB pays commissions. When they generate negative, CB absorbs the loss. Thus over the year, the affiliate earns a healthy commission, while Centrebet takes a loss. In this situation, Centrebet needs to have a way to protect themselves from losing this money, or they will have less overall money with which to pay other affiliates that are continuing to drive traffic.
As mentioned before, we accept all your concerns as valid, and because of your feedback, we will be working with AGD to adjust the T&Cs to better address this issue while protecting affiliates who promote in good faith. Again, if anyone should want to speak about this in further detail, please don't hesitate to contact us personally to set up a time to chat.