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Commission Playbook: Optimize Your Affiliate Payout Strategy

Discover smart strategies to structure, manage, and scale affiliate commissions effectively with Affnooku2019s data-driven Commission Playbook.

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Commission Playbook: Optimize Your Affiliate Payout Strategy

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  1. Commission Playbook Making Sense of Affiliate Payout Models in Online Gambling www.affnook.com

  2. Why Does It Matter How Affiliates Are Paid? When it comes to the world of iGaming, affiliates are your power move. They attract traffic, bring in sign-ups, and help you grow faster than conventional marketing ever could. But here’s the catch – not every partnership fares the same way. How you pay your affiliates also has a lot to do with how well (or poorly) your program performs. Be it long-term loyalty or rapid wins, your commission model sets the stage. If you go for the wrong model, you'll be overspending on low- quality traffic or missing out on long-term, high-value players because your structure is not lucrative enough.  Let’s break down what each model brings to the table.

  3. Model 1: CPA (Cost Per Acquisition)  What it means:  You pay a fixed amount every time a referred player completes a certain action. Generally, the conversion event is set as registration with the first deposit.   When it works: You want the expected marketing costs.
 You’ve just started out and you need volume fast. 
 You are okay with some drop off in long-term loyalty.  Example:
 If your CPA is set at $2,000, and an affiliate comes in with 20 depositing users, you pay them $40,000. That’s all. No additional or ongoing payments for the affiliate.  Things to watch: May attract players who go for quick wins.  Fewer players with LTV.

  4. Model 2: Revenue Share What it means:  Affiliates are paid a certain percentage of revenue generated by the referred players. This could be on for months, or even years. When it works: Your goal is to reward loyalty and higher-quality traffic.  You don’t mind diverse monthly payments.  You’re going for long-term retention over acquisition.  Example:
 A player who generates a revenue of $10,000 in a month is referred by an affiliate. With a rev-share of 30%, you pay them $3,000.  Things to watch: Be clear on complex calculations and definitions, e.g., NGR, GGR, etc.  Could prove difficult for you if your margins are already low. 

  5. Model 3: Hybrid Model What it means:  This model gives you the best of both worlds. You provide a small upfront CPA along with a revenue share for a referred player. This gives the affiliates an early boost and long-term passive income.  When it works: You’re dealing with high-quality affiliates. You want risk-balanced activity. You want to have a competitive edge to close better deals. Example:
 You decide on a $1,000 CPA + 20% rev-share. Affiliate comes in with 10 players, i.e., $10,000 upfront CPA + monthly payments based on generated revenue. Things to watch: Rev-share in this model should be lower than the pure rev-share deal.  There’s a lot to track, which means you’ll need a reliable affiliate platform to manage it all. 

  6. How to Choose What Works for You Your Priority Go With CPA Fixed acquisition cost High player quality Rev-Share Balanced growth Hybrid Model Scaling fast with control CPA or Hybrid Building loyal affiliate base Rev-Share Beyond Models: Factors That Influence Commission Structures Player Quality & Geography Players belonging to regions with regulated markets, like the UK or Spain, bring in higher value. They also require more stringent compliance measures. Commission structures in these regions are usually more selective and with tighter controls. TrafficVolume Affiliates that can bring in high-quality traffic may often require custom deals. Advanced affiliate marketing softwares like Affnook can help you fix flexible tiers depending on value and volume.  Vertical-SpecificTrends  Be it casino, sports, or bingo, each comes with different player activity, margins, and life cycles. You cannot go with a one-size-fits-all commission structure, you need to tailor it according to the vertical.

  7. Pro-Tips for Structuring Your Commissions Start flexible, then optimize: Keep on testing with what works for you, and then standardize. Go with hybrid or tiered models when you’re starting. Use data, not guesswork: You should always try to put forward the best deal, since your affiliates are bringing in top players already. Automate payouts: Don’t lose affiliates over delayed payments. Platforms like Affnook can help you fix scheduled, automated payouts depending on real-time reports. Reward Retention: Loyalty pays – literally. You should come up with rewards or bonuses for referred players who stay over 60, 90 or 180 days. 

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