Affiliate revenue question

[Sambucatus]

Hi,

I work for a soon to be launched casino affiliate and we are in the process of making deals with several partners.

One question which springs to mind is: how do casinos arrive at their net revenue figure? For example some casinos charge as high as 28% of gross revenue in administrative fees whereas others charge under 20%. Is it legitimate that some casinos charge much more than other in fees?

My other question is how ‘bonus costs’ are calculated. For example if a player receives a bonus is the full value of the bonus deducted from payments due even if they don’t clear it? Given that most casinos deem ‘bought chips’ to be played before ‘bonus chips’ does this affect the way that payments are calculated?
For example suppose a player deposited £20 and got a £20 bonus which needs to be cleared. If the bet £20 with their real money and win is the win credited to the bonus account or real money account? If it is credited to the bonus account does this affect the amount the affiliate is due to receive?

Thanks in advance,

Will

 

[Guard Dog]

I have said this a number of times, but what is REALLY needed is a standard on revenue calculations that would result in something called 'Effective Revenue Sharing'. I see this as a way to normalize the agreements.

For example:

Program One Calculation

Net Revenue = Deposits - Withdrawals - Bonuses - Chargebacks

Program Two Calculation

Net Revenue = Deposits - Withdrawals - Bonuses - Chargebacks - License Fees (Example 10% of Deposits)


Now if both organizations have 30% revenue sharing....

Program one has an 'Effective Revenue Sharing' of 30% (Net Revenue) = True 30%

Program two has an 'Effective Revenue Sharing' of 30% (Net Revenue) = 30% (Deposits - 10%*Deposits - Withdrawals - Bonuses - Chargebacks) = 25.38%


That would be with the assumption that the 'Base Model' Revshare is: Deposits - Withdrawals - Bonuses - Chargebacks.

Adding 10% licensing fees is small compared to some places... There are also other fees some places incorporate. So.. a program can easily provide 50% revshare if they have huge fees for licensing, administration, and other. But you are 'Effectively' getting a typical revshare rate, not what you expect


As far as bonus money.. I think it is probably different per software provider.