Comeon Connect Admin Fee of 38% on GGW is the highest I have heard of. Please correct me if I'm wrong.
I think that is a very bold statement. I would like to know what numbers (data or research) are you using to back this up?
I'm not saying this claim is false, but when using this as an argument over your own fee structure, backing the claims with numbers should be a standard thing.
And other multi-brand companies that charge let's say, half of those fees are not advertising heavily?
How are you measuring the "help" effect for the affiliate from advertising? In my opinion, there are two sides to this: When you have a lot of non-affiliate advertising, you have better coverage on the market by default. This could actually hurt the conversion for the affiliate, since there are too many players that search for gaming related stuff and already have an account on the brand in question. On these cases, the brand will get branding/retention for free from the affiliate, so I would say this is a more complex thing than just to jump into favorable conclusions.
Again, when justifying this cost structure by these type of abstract claims, I think they should be be very well backed.
You don't pay full fees to gaming providers when players are wagering with a bonus. Also, when justifying 18% on game royalties, it's safe to say that the real cost is not even close to that, let alone the adding this fee to bonuses.
Also, why do you deduct 7% jackpot contribution fee from all wagers, even from non-jackpot slots? Usually, this is done on real contribution basis. Jackpot contributions vary, but average around 7%. Are you saying that you take this from all wagers to cover JPC's? Don't you think this is a bit too much?
There is no transactional cost on bonuses (I assume you are talking about payment processing fees), and calculating 8% on transaction fees towards the affiliates is not ok, and you calculate all this from bonuses as well, so this breakdown seems a bit off.
Other than that, thank you Stephen for being transparent and responsive. I think the logic behind the free structure is ill-advised and I feel affiliates (and also competitors) should be respected more when making claims on conversion, CLTV, and retention. And further, these claims should be backed with proper data.
Overall, I like the program, but since there is a healthy discussion around this, I wanted to take part. And as it is Christmas time, there is absolutely no rush to answer. This is not an attack on the program, but I don't like the fact that casinos can do this kind of stuff and you find out about these only when a watchdog entity makes their own calculations.
Most of us promote dozens of brands and trust big operators like yourself by default. And I don't mean that you are scamming, but these fees and deductions are not something you can easily justify.
Stephen, why don't you state the 38% admin fees in your terms? It feels like these numbers are only known in some threads in forums like these.
We are currently working on the T&Cs of the affiliate program to be in-line with marketing regulations, such as UKGC and Sweden, We will be looking to add in the actual fees per brand then. Please note that the fees of 38% are only for some of our brands. These fees only are the legacy of "Earn Affiliates" brands but we will endeavour to make this clearer in the near future.
My claim was that you are claiming that heavy TV advertising is good for the affiliate, my claim was and is that it is not that simple. I was talking about the coverage and number of accounts already on the market that visits the affiliate's website. Organic and affiliated accounts, that can't be tracked the affiliate anymore, since these accounts already exist.You are correct in saying that affiliates are important to brand awareness - of course you are and in 2018 contributed to 40% of all our acquisition, however, I would dispute your claim that we get branding free from an affiliate – we pay for that via revenue share for the lifetime of the player – that’s the whole point of RS – continued promotion. I would also like to add here that we have No negative carryover and absolutely NO quotas – life does mean life for us.
Taking a 38% fee slice from Gross Gaming means all revshare figures are calculated on 62% of the losses.
So the HEADLINE figure of 40% net rev-share (after fees) should be considered as roughly 25% gross revshare (40% of 62% = 24.8%)
Stephen I think you are right that you are making things open and obvious - but your program would be better off with affiliates if it avoided the "puffery" of stating 40% share.
Just state 25% gross rev share and be done - people will know what to expect.
You mean additional "fees" such as gaming tax which the affiliates will need to soak up as well for newly regulated markets such as Sweden?
Has there been any updates with the terms and conditions? These brands look very interesting.
My claim was that you are claiming that heavy TV advertising is good for the affiliate, my claim was and is that it is not that simple. I was talking about the coverage and number of accounts already on the market that visits the affiliate's website. Organic and affiliated accounts, that can't be tracked the affiliate anymore, since these accounts already exist.
I appreciate Stephen giving the full detail - as much as he was able to do so.
Taking a 38% fee slice from Gross Gaming means all revshare figures are calculated on 62% of the losses.
So the HEADLINE figure of 40% net rev-share (after fees) should be considered as roughly 25% gross revshare (40% of 62% = 24.8%)
Stephen I think you are right that you are making things open and obvious - but your program would be better off with affiliates if it avoided the "puffery" of stating 40% share.
Just state 25% gross rev share and be done - people will know what to expect.
As you may be aware, the UKGC have increased the Remote Gaming Duty from 15% to 21% as of 1st April 2019, affecting all referred players residing in the United Kingdom and registered to our UKGC brands; Comeon.com, Mobilebet.com, and GetLucky.com. As of 1st April 2019, we will be deducting 21% from the above players Gross Gaming Revenue prior to calculation of commissions.
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