Why is the comission % so horrendously low, lower than advertised?

[Tupee]

This program advertises comission percentage from 25% and up. But when I have checked my stats to see how the comission is calculated, I was horrified. I have just found the income % is very very low, I have not seen this low comission percentage elsewhere (probably exist elswere though). I don't really understand how they determine the base amount to calclate the comission from, but in the end, the comission percentage will actually be significantly lower than their advertised 25% minimum. See my stats from the past 3 months with photos attached:

final comission percentage:

January: 18%
February:18%
March: 10% !!!!

 

[AussieDave]

In all of these examples, it does not display bonuses, withdraws or taxes. The GGR (gross gaming revenue) is affected by all the aforementioned deductions.

As far as the 25% commission, you earned exactly that in all three (3) months.

• March 2021 NGR: 513.04, paid 25% = 128.26
• February 2021 NGR: 566.25, paid 25% = 144.56
• January 2021 NGR: 352.46, paid 25% = 88.11

Like most programs, Bitstarz Affiliates pay commission on NGR.

Or maybe I'm missing the point your making here, @Tupee?

 

[Strider1973]

Yes as AussieDave said, it's commission based on NGR and not on deposits. The vast majority of programs use this calculation, only very few pay affiliates based on deposits (minus withdrawals of course) or based on wagers.

You should have seen this before as you are in the industry since 2013?

 

[Bitstarz Affiliates]

This program advertises comission percentage from 25% and up. But when I have checked my stats to see how the comission is calculated, I was horrified. I have just found the income % is very very low, I have not seen this low comission percentage elsewhere (probably exist elswere though). I don't really understand how they determine the base amount to calclate the comission from, but in the end, the comission percentage will actually be significantly lower than their advertised 25% minimum. See my stats from the past 3 months with photos attached:

final comission percentage:

January: 18%
February:18%
March: 10% !!!!

Hi Tupee,

As per what AussieDave had stated, we pay commission on Casino NGR, and not on deposits.
The calculations are correct and calculated at 25%.

If you have any further questions, feel free to reach out to your account manager.

Thanks,

 

[AussieDave]

Let me add, that's what Revenue Share is... You are sharing a % of the Net Revenue (NGR), with the Casino.

 

[Tupee]

To tell the truth, most of the affiliate programs I am in close contact and in long term partnership with pay according to deposit. They do have a kind of Netgaming, ANW or call it as you like, but mostly that amount matches the deposit amount. At the moment the brands I have the most success with is RTG, and there it goes as it is advertised: 35%, where I truly get 35% of the deposit, actually 35% of the Netgaming but it is almost always the same.

I noticed that some programs deduce a kind of admin fee, or similar things, but usually in that case what happens is that the revenue share is unbelievably high, like 50%, and in the end with the admin fee deduced it results in 20-40% of the deposited amount.

So yes, I did experience that there are some programs with some kind of fees or deductions, but these were kind of exceptions among my partners until now, and the final percentage relative to the deposited amount was never this low, like 10%. Maybe you find it strange, but during 10 years, I am still shocked when I see this because I am not used to this at all.

But what is this casino NGR then? Is it the same as admin fee, or how do they calculate this amount?

Anyway, just as a quick example, I have logged in to one of my major partner's platform, and here is the stat from the past few months summarized, you can see that the percentage relates to the deposits.

Maybe it sounds strange but this is what I am used to.

 

[Tupee]

Just took a quick look at another one I had nice earnings, and the same, comission relative to deposit:

 

[AussieDave]

@Tupee - Total affiliates and Deckmedia for example, pay me 30%. If a player loses $1,000, then I'm paid $300. It all depends on the program, and what they deduct from GGR. Total and Deckmedia, only deduct winnings and chargebacks. Hence, if a player loses their $1,000 deposit, I'm paid $300 (30%).

 

[Strider1973]

Strange programs that you promote where players newer withdraw... Would you want to play at such a casino?

But yes as we said, rev share (% of player losses) is the norm in this industry, a share of deposits (like Deckmedia uses) is the exception. But even at Deckmedia there are also players withdrawing (at least in my account and I think that's completely ok).

 

[Bitstarz Affiliates]

Hi Everyone,

Thank you guys for the feedback.

Paying affiliates off of a % on deposits sounds unstable considering that we have many winners with withdrawals and no negative carry over month on month. Perhaps casinos that have only deposits and no winnings can afford this, but that is not the case with BitStarz. We have one simple example where you can understand and have a clear picture why this is not profitable (we took one affiliate deposits & withdrawals from previous month – see attached image).

On the other hand we are sharing profit with our partners and we believe that makes sense in the long run. The admin fee is not there to make more money for us, but in fact it is there to cover game providers fee, payment providers fee and the white label fee. It is not unusual that this % is higher than 25% but on average it should hover around 25%.

There are many promises within this industry, and we believe a lot of them are not good in the long run, but it is up to you to choose the partner you can trust.

 

[Tupee]

@Tupee - Total affiliates and Deckmedia for example, pay me 30%. If a player loses $1,000, then I'm paid $300. It all depends on the program, and what they deduct from GGR. Total and Deckmedia, only deduct winnings and chargebacks. Hence, if a player loses their $1,000 deposit, I'm paid $300 (30%).

Actually one of my stats was copied from them. But okay, I see what's the situation here, I somehow unintentionally focused on brands that turned out to calculate the rev share based on deposits, so this system at Starzpartners was unusual to me, because I thought the other one is the normal.