New Program Design

Daffodil Bumpkin

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Hello,

We're a new site and want to set up an affiliate program. I am currently tasked with researching affiliate programs and then defining ours.

I wanted to pick your brains about the "attractiveness" of various different programs because we don't have actual experience with any affiliate program ourselves. Please let me know in case I posted in the wrong forum.

We're looking at revshare programs. What baffles me is that many many programs out there seem to be extremely opaque to the point that they are bordering on scams. I tried to research how *exactly* other programs work but they are almost never properly defined.

A common and attractive program type I see is basically RevShare with 25-40% of NGR with NNCO and HRP. NGR is computed as follows:

NGR = (((Bets – Wins) – Paid Bonuses) - Admin Fee) - Bonus Cost.

NNCO (no negative carry over) is of course attractive for the affiliates, while HRP (high roller policy) is a must from the operator's point of view.

However, I find this very arbitrary, especially the admin fees. Nobody can compute the real fees in advance and then map them on a per player basis, the involved variables are simply to dynamic. So basically operators seem to "stick a finger in the air" and make up some form of deductive that they use as "admin fee". This is of course not documented anywhere. I find this highly dubious.

Also the NNCP and HRP are a bit weird - they seem to modify something that should be very complex. They center around the fact that you receive payouts at certain intervals (usually monthly) and they operator needs to eat any losses that occur at the payout day. This also prevents more regular payouts than monthly - no operator can afford this risk.

What are your opinions on the matter?

Cheers
 

KasinoKing

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What are your opinions on the matter?
I am not the most "hard line" affiliate as I can see both sides of the picture, so these are my opinions:

Admin Fee: This simply should not be part of the equation (unless it is a very low fixed amount, like say 5-10%)
The operator gets the remainder of the NGR after the affiliate commission - this should be sufficient.
Otherwise the operator is "double dipping".
e.g. Videoslots impose a 25% of GGR fee, and then also get 60% of the NGR - this leaves affiliates on 40% RS actually getting only around 8% of GGR.

NNCO: Even I can see that this seems unfair on the operator, but you have to look at the global picture - players win, players lose, casinos win, casinos lose - but at the end of the day the house always wins.
For the smaller affiliates like myself NCO is a complete non-starter.
Why would I promote an operator with NCO when 95% of other operators don't have it?
(I was more than 2.5 YEARS in the red with Bet365 once due to NCO, while still promoting their brand!)

HRP: I have no problem with this - totally fair.

KK
 

Daffodil Bumpkin

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Thank you MissExpose. Great work you did there, awesome! It really seems to be the case that operators simply deduct some sort of fixed percentage to cover their cost. As this is arbitrary, it seems to be mostly a way to limit the actual payout percentage. As affiliate systems are in competition, we are forced to advertise the highest percentages (something like 40-50% revshare) and then you need to lower this number to something sensible to cover your cost (ie admin fee, chargebacks etc) as well as exclude risk via HRP. Seems fucked.
 

Daffodil Bumpkin

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@KasinoKing Kind of agree with you there. The only difference is NNCO:

> players win, players lose, casinos win, casinos lose

So it would be fair that also "affiliates win, affiliates lose". With NNCO, they don't, so they are isolated from the risk of losing. Bit unfair in a way. HRP fixes this at least for large losses, but it seems "hacky".

In the end it's all percentages - you have X% revshare, then NNCO adds some percent, HRP removes some, and the admin fee removes some again. Convoluted.
 
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