Awesome deals for first 3 months but...

[Ray]

As I pick out the affiliates I want to promote, I notice a lot of them have a huge rev-share for the first 3 months, then it goes way down. What do new affiliates and websites do in these cases? I highly doubt I'll have enough players in the beginning to take advantage of these.

Do I just suck it up and accept that I have to have low rev share? Or do I ask the affiliate manager if I can have a raincheck for the promo

On that note, what are your common rev share amounts? Are you getting 80%'s or 45%'s. Whats a reasonable percentage?

 

[Online18Casino]

For most I find 35-40% is really good, but for some you will have to do a bit of negotiating for that rate, and you will need traffic to negotiate with.

You will also want to note if they carry over negative earnings because that will also have some impact on what a good percentage is.

You can ALWAYS re-negotiate your deals after you start receiving traffic. I always give best preforming (for me) casinos higher placement, and a better rev-share deal helps that.

You can also ask if they can raincheck the promo, I don't see why they wouldn't.. Most are very flexible, and it never hurts to ask anything! A good part of my earnings have been entirely through negotiating.. So for now I would focus on getting traffic... If you have the players, finding casinos that will offer you a top % for them is the easy part!

 

[Guard Dog]

I agree with that. The problem with those promotional offers is exactly that... most affiliates are new when they sign up and will never see that high percentage return But try to negotiate a higher revenue share instead of taking advantage of the promotion. It will be better for you in the long run anyway.

 

[AussieDave]

On that note, what are your common rev share amounts? Are you getting 80%'s or 45%'s. Whats a reasonable percentage?

Just because an affiliate program states 40%, it doesn't mean your getting a true 40%. Some places are deducting all sorts of lame ass fees, admin costs and in some cases, hitting their affiliate partners up for software licensing fees etc etc. By the time you crunch the numbers, that 40%, dwindles down, down and down, to a point, where your reaching 18% or less. If that includes bundling of their casinos, then your in much worse position again.

Do your home work, ask questions and crutch numbers. Only then will you have a genuine idea to what the true % you'll receive.

In so far as neogotiating a better deal, that's possible but if you don't have the traffic and are not pushing through the numbers, then that will be a short lived deal.

 

[Ray]

Just because an affiliate program states 40%, it doesn't mean your getting a true 40%. Some places are deducting all sorts of lame ass fees, admin costs and in some cases, hitting their affiliate partners up for software licensing fees etc etc. By the time you crunch the numbers, that 40%, dwindles down, down and down, to a point, where your reaching 18% or less. If that includes bundling of their casinos, then your in much worse position again.

Do your home work, ask questions and crutch numbers. Only then will you have a genuine idea to what the true % you'll receive.

In so far as neogotiating a better deal, that's possible but if you don't have the traffic and are not pushing through the numbers, then that will be a short lived deal.

Wow I had no idea there were fees like that! Is this common throughout most programs?

 

[CaseyM]

Wow I had no idea there were fees like that! Is this common throughout most programs?

Yes, very common so 35% at one program might actually be higher than 50% at another program so don't just take the percentages at face value

 

[TheGooner]

My expectation is to get a REAL 30-35% share of profits from a program on a rev-share plan.
So if they have "deductions" etc, then they need to be offering a higher headline rate to get back to that number.

Regarding your original question - programs offering a very high 3 month start for rev-share affiliates can do that because usually your rev-share earnings are slowly built month by month. So a high first 3 months is not really relevant - it's the base number after that which is important.

 

[slotplayer]

its a percentage of net profit, not gross revenue.

 

[Ray]

Very interesting information. Good to know there is always room to negotiate based on traffic and performance.

 

[Giggity.]

We're waiting to promote a few affiliate groups and their large 3 month start up bonuses for when we're ranking higher and bringing in more converting traffic. After that we'll negotiate the regular %. If they're a reputable company and want to stay visible on your site they'll most likely agree to something favorable to all parties.