Kristine
Affiliate Program Representative
- Joined
- Dec 9, 2015
- Messages
- 63
- Reaction score
- 33
What do you mean by "PAY the money in"?
I know when we give a bonus we only have two possible costs:
(1) revenue share paid to supplier on the bonus funds. E.g. if we give a $100 bonus to a player and the player loses the entire $100 then we are liable to pay the supplier $10 assuming our agreement with them is to pay 10% of player losses on bonus funds. In this case, we don’t deduct this from the affiliates earnings and the actual cost is $10. If some programs are deducting the entire $100 or $10 then this is completely fine assuming you agreed to this. (2) payment to player if they meet the WR and withdraw. So, if a player meets the WR on a $100 bonus and withdrawals $100 then we pay the player $100, pay $10 less to supplier (assuming 10% rev share agreement with supplier) and $25 less to affiliate (25% rev share with affiliate). Those are the only costs I am aware of. But it can add up especially if the player meets the WR and starts playing progressives or themed games which have a higher cost.
We offer a 50% rewards bonus on Friday and Monday and a 20% daily bonus and this is very aggressive. So for us bonus costs are high but the net effect is that profits are higher for both the casino and affiliate, its just earned over a longer period of time.
I think one of the bigger differences between then and now is that many suppliers are starting to charge a reduced revenue share % on bonus play. As an example, we recently negotiated a new contract with a certain supplier and they are deducting a flat 10% off GGR to help reduce the cost of bonuses and in return we give them more exposure. There are even some starting to charge 0% on bonuses but it depends on the contract and bargaining power. So, I think the actual costs of bonuses are going down vs. several years ago.
I know when we give a bonus we only have two possible costs:
(1) revenue share paid to supplier on the bonus funds. E.g. if we give a $100 bonus to a player and the player loses the entire $100 then we are liable to pay the supplier $10 assuming our agreement with them is to pay 10% of player losses on bonus funds. In this case, we don’t deduct this from the affiliates earnings and the actual cost is $10. If some programs are deducting the entire $100 or $10 then this is completely fine assuming you agreed to this. (2) payment to player if they meet the WR and withdraw. So, if a player meets the WR on a $100 bonus and withdrawals $100 then we pay the player $100, pay $10 less to supplier (assuming 10% rev share agreement with supplier) and $25 less to affiliate (25% rev share with affiliate). Those are the only costs I am aware of. But it can add up especially if the player meets the WR and starts playing progressives or themed games which have a higher cost.
We offer a 50% rewards bonus on Friday and Monday and a 20% daily bonus and this is very aggressive. So for us bonus costs are high but the net effect is that profits are higher for both the casino and affiliate, its just earned over a longer period of time.
I think one of the bigger differences between then and now is that many suppliers are starting to charge a reduced revenue share % on bonus play. As an example, we recently negotiated a new contract with a certain supplier and they are deducting a flat 10% off GGR to help reduce the cost of bonuses and in return we give them more exposure. There are even some starting to charge 0% on bonuses but it depends on the contract and bargaining power. So, I think the actual costs of bonuses are going down vs. several years ago.
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