CasinoLuck Affiliates Where Net Revenue is not Net Revenue

[DaftDog]

I've been promoting CasinoLuck Affiliates on my site for a couple of years and very seldom earned any major commission from them. I also never really looked at my stats too closely either. I thought I was on 30% of Net Revenue. Well I am and I'm also not as Net Revenue is not really Net Revenue at Casinoluck Affiliates.

You see there is a nasty extra deduction called "commadminfee" that is deducted after Net Revenue.

Added: In the Earnings report my Net Revenue is: €1,253.49, so you would think my commission would be: €376.05. My actual commission for February is €300.84 after the "commadminfee" of €250.70 has been deducted from the Net Revenue figure.

That's a big-ass fee for managing my affiliate account.

 

[KasinoKing]

Yes, I knew about this, and it sucks.
This is the note I have on my master spreadsheet:
"My agreement was 30%, but somehow I missed until January 2015 that they take a "comm-admin-fee" of 20% off the Net Rev BEFORE the calculation!
This means I'm actually only getting 24%!"

Having said that, do we REALLY know what other "hidden fees" other operators are deducting?
I haven't checked my Feb stats yet - I'm now going to look closer at ALL NetEnt based operators and see if there are any other "nasties"...

KK

 

[Guard Dog]

As an FYI.... Casino Luck is in my new calculations spreadsheet that I am trying to make available to everyone (once completed). Here is their Effective Revshare table based upon the data I have:

Tier 1: 24.0%
Tier 2: 28.0%
Tier 3: 32.0%

Their admin fee is 20%. Based upon that, you are right in line with the 24% bottom tier. Too bad companies are TOO SHADY to put the Effective Revshare tables up.

 

[Frank]

20%? so they deduct money from themselves also to pay themselves back? Is this the new thing to claw back earnings from affiliates? forget quotas--

 

[Guard Dog]

This is pretty typical as of the last couple of years for sure... probably longer. Called 'Admin' Fees. Here are some examples:

CasinoLuck
Casino net revenue is calculated as Player bets minus player winnings minus player bonuses minus transaction fees and admin fees.
Transaction fees are the fees the different payment providers charge on the player´s deposits and withdrawals. This fee is set to 6,5% of all deposits.
Admin fees are the fees covering the cost of handling the gaming customer. This includes for example finance, risk surveillance and game software licensing. This fee is set to 20%.

So - it actually looks like my calculations are off. Deposits would eat into your commissions as well.

Tivoli Affiliates
a) Net Revenue is defined as: =Bets - Wins - 20% Admin Fee* – Paid Bonuses** – Transaction Costs & Chargebacks - 15% UK Gambling Tax or 19% German VAT

Honest Partners
a) The Net Revenue (applying to all products) is defined as: = Bets – Wins – 23% Admin Fee1 – Paid Bonuses2 – Transaction Costs & Chargebacks – 15% UK Gambling Tax3

Casino Extra Affiliates
Casino net revenue is calculated as follows: Gross Revenue – 22% Admin Fee

Definition of Gross Revenue
Gross Revenue = Total Bets – Total Wins – Payment Transaction Costs – Chargebacks – Bonus Costs

Definition of Admin Fees
Admin Fee is a fixed value of 22% which consists of License fees, Game Provider Fees and Platform Fee (Income Access)

MBit Casino Affiliates
Commissions are paid out as a percentage of the Net Gaming Revenue.

a) For Affiliates which signed up after 21st of December 2013:
NGR = (((Bets – Wins) – Paid Bonuses) - Admin Fee) - Bonus Cost

Whereof the Admin Fee is a value which contains the License Fee, Game Provider Fee and Platform Fee.

Yako Affiliates
Commission structure:
Commissions are paid out as a percentage of the Net Revenue.
a) For Affiliates which signed up after the 26th March 2014, the Net Revenue (applying to all products) is defined as; =Bets - Wins - 20% Admin Fee1 – Paid Bonuses2 – Jackpot contributions -Transaction Costs & Chargebacks

4Grinz Affiliates

• Commissions are paid out as a percentage of the Net Gaming Revenue (NGR).
• NGR equals (Bets – Wins) – (Admin Fee*) — (Negative Carryover)
• The NGR Share is dependent on monthly active users and monthly gaming revenue.

* Per Coingaming; The Admin Fee is comprised of the License Fee, Game Provider Fee, and Platform Fee.



I could go on and on and on..... It is a way to artificially increase revshare. So - a program that has a 25% admin fee can say they have 35% revshare as their tier 1 when they really have only about 20%.

 

[DaftDog]

They need to update their website to show 24% instead of the bullshit 30%.

 

[Guard Dog]

I agree. There are many, many programs that need to update their websites

 

[CaseyM]

Yes, every program does this. At least they state what their admin fees are.

 

[Guard Dog]

Wait... every program definitely does not do this. Not even close. But it is becoming more prevalent.

 

[KasinoKing]

Wait... every program definitely does not do this. Not even close. But it is becoming more prevalent.

I think what Casey meant was all NetEnt casinos deduct licensing fees from the gross revenue. It was told a long time ago that it was 15%, but that could be wrong or could have changed, or maybe Luck add another 5% for something else.

It looks worse at Casino Luck because they list it AFTER net revenue, instead of before it.
But at the end of the day, all operators deduct this fee, and it doesn't make any difference WHERE it's shown (if at all), the amount of commission is still the same.
The only bad thing is Luck say 30% of Net Revenue, but the Net Rev figure in their reports is actually wrong.
They do need to address this.

KK

 

[AussieDave]

maybe Luck add another 5% for something else.

Yeah, themselves

On a serious note... F0r arguement sake, lets say a program is paying 25% on NGR.

Now lets say I'm in business with 3 partners and we both have equal shares in the business. Which is 33.333%. Hypothetically if each partner had to pay the outgoings etc etc, out of their own pocketed each month, then they'd each pay 33.333%.

So why is it then that affiliates, who are only on 25% (insert other commssion % here), are slogged 100%?

 

[DaftDog]

I sent an email to my aff manager (who is pretty sharp and responds quickly to my emails) regarding this issue. I also included a link to this thread. She forwarded my complaint on to the casino manager who has responded. I'm sure they won't mind the managers reply being posted here.

"The commission he received is correct but I understand what he means here. The way IA displays everything with their multitude of columns can be somewhat confusing. The definition of net rev for our affiliate program is as follows "net rev = "player bets minus player winnings minus player bonuses minus transaction fees and admin fees". This is what has been applied and he has received his commission correctly based on the net rev.

About IA and the way the display everything; In IA, the column called net rev actually shows the net rev before the admin fee has been deducted. It is how their system is set up (not optimal imo). Then the admin fee has its own column and is deducted in the next step. To make it super clear, IA should probably deduct admin fee first and then display the net rev column when that has been done. They have just over complicated things. Either way, the end result will still be exactly the same. We have clearly stated that admin fee is to be deducted to calculate net rev but I will speak to IA tech to see if they could display it as I explained above instead, to avoid any confusion.

Also, the fact that we have an admin fee is nothing extraordinary. This fee is what we pay for the games in royalty/rev share. It is not any kind of fee that we take for doing some kind of administration work. That work we do for free! It should possibly be called "games royalty fee" or alike instead. I hope this explains the situation and answers his concerns"

ps. thanks for managing my account for free.

 

[Guard Dog]

I find the part funny where he says this:

Also, the fact that we have an admin fee is nothing extraordinary. This fee is what we pay for the games in royalty/rev share. It is not any kind of fee that we take for doing some kind of administration work. That work we do for free! It should possibly be called "games royalty fee" or alike instead.

No - in fact, the fee for YOU having a casino is what WE pay. Instead of having a cost of business, you force the affiliates to pay your cost of business and artificially inflate your revshare to entice them. lol.

And, seriously, 'the work we do for free'? That's also the cost of business. Do affiliate programs have NO IDEA how much we do for free before gaining a single player? It's completely arrogant, IMO.

 

[slotplayer]

Bonus money? Gets me every time.

 

[Frank]

I find the part funny where he says this:



No - in fact, the fee for YOU having a casino is what WE pay. Instead of having a cost of business, you force the affiliates to pay your cost of business and artificially inflate your revshare to entice them. lol.

And, seriously, 'the work we do for free'? That's also the cost of business. Do affiliate programs have NO IDEA how much we do for free before gaining a single player? It's completely arrogant, IMO.

We send you thousands of dollars worth of clients.. in return you will only take 70% of the 80% and do the admin for free lol @free

 

[AussieDave]

you force the affiliates to pay your cost of business and artificially inflate your revshare to entice them.

And, seriously, 'the work we do for free'? That's also the cost of business.

Do affiliate programs have NO IDEA how much we do for free before gaining a single player? It's completely arrogant, IMO.

Well said Andy

 

[bonustreak]

Yes!! We do a lot for free!

 

[jopaa]

Lately a lot of my work is FOR FREE also! Very sad! I miss the old times 2008-2010 when my only concern was driving traffic to my websites.

 

[Mikew]

I have heard about admin fees a lot, although I am not for that, it just doesn't surprise me anymore to see it.
The admin fees could actually be divided in 2. Half for the operator and half the affiliates.

On the other hand, what shocks me the most here is "minus bonuses"
Why should we be deducted from that especially when it's the operator who decide on their welcome and reload offers.

I'm seeing it as a rip off now.

 

[DaftDog]

On the other hand, what shocks me the most here is "minus bonuses"
Why should we be deducted from that especially when it's the operator who decide on their welcome and reload offers.

I'm seeing it as a rip off now.

No rip off. When a bonus is claimed by a player it will reflect as extra cash in Net Revenue once it has been played through their account. It, therefore, has to be deducted to reflect the correct Net Revenue.