iGaming Affiliate Commission Structure Guide – Maximize Your Earnings

1. iGaming Affiliate Commission Structure Guide Explore Popular Payout Types in iGaming Affiliate Promotions and How to Choose the Right One www.affnook.com

2. What are Affiliate Commissions? In iGaming, affiliates can be influencers, regular players, dealers, networks, or high value players who promote your brand or operation.  In exchange for this promotion, each affiliate is entitled to a payout or a small commission fee for bringing valid users to your platform. This commission must be paid in a timely manner to ensure partner marketers regularly bring good quality traffic to your platform. Commission structures can be set for each individual affiliate or for groups of affiliates. It must be in proportion to the contributions of the affiliate.

3. A Clear Online Gambling Affiliate Commission Structure is Beneficial Targeted Rewards and Motivation Personalized rewards attract efficient affiliate marketers and drive maximum business. This approach ensures affiliates are motivated while fostering trust in the affiliate program. Maximized ROI and Strong Relationships By tailoring rewards and incentives, affiliate programs maximize ROI and nurture long-term relationships with affiliates, encouraging ongoing commitment and collaboration. Personalized Tiers for Engagement Customizing performance, traffic, and bonuses boosts affiliate engagement, loyalty, and performance, ensuring a more tailored and rewarding experience. tiers based on affiliate type, Compliance and Fair Practices Operators can ensure compliance with iGaming regulations, avoiding misleading practices, while maintaining fairness and transparency within the affiliate network. Automated Performance Tracking Affiliate managers using iGaming software can automate performance tracking and calculations, reducing errors and streamlining processes, while enabling better data-driven decision-making.

4. Major Commission Structures used in iGaming Promotions Cost Per Acquisition or CPA Cost Per Acquisition (CPA) in iGaming affiliate marketing refers to the amount of money an operator pays an affiliate for acquiring a new customer or player.  This metric is used to measure how much it costs the operator to bring in a new user who performs a desired action, such as signing up, making a deposit, or placing a bet. Total Affiliate Commission Payouts Cost Per Acquisition = Number of User Registrations or FTDs Example of CPA in iGaming Affiliate Marketing Let’s say an iGaming operator offers an affiliate program with a CPA model. The operator agrees to pay $100 for every new player who signs up, deposits at least $50, and plays a certain number of games. In this example, the CPA is $100, as that’s the cost the operator incurs to acquire each new player through the affiliate. This is beneficial for both parties. The operator gets a new customer, and the affiliate earns a commission based on that acquisition.

5. Revenue Sharing Model The revenue share commission model is where affiliates earn a percentage of the revenue generated by the players they refer to the operator's platform. Instead of a one-time payment (like CPA), affiliates are continuously paid based on the player's activity, such as deposits, wagers, and losses. Key Characteristics Affiliates continue to earn commission as long as the referred player is active and generates revenue for the operator. However, these earnings can fluctuate depending on the player’s activity such as how much they bet or lose. This model is often preferred by affiliates who can refer high-value players with consistent betting behavior, as it provides a steady income stream over time. Example of Revenue Share Commission Model Let’s say an iGaming operator offers a 30% revenue share to their affiliates. The affiliate promotes the operator’s casino or sports betting platform on their website, social media, or other channels. A player clicks the affiliate’s link, signs up, deposits $200, and starts playing. Over the next month, the player generates $1,000 in total wagers and loses $200. Based on the operator's revenue share offer of 30%, the affiliate earns 30% of the $200 (the operator's profit from the player’s activity). So, the affiliate's commission for that month would be: Affiliate’s Commission= 30% × 200 = 60  Thus, the affiliate earns $60 as their revenue share for that player.

6. Hybrid Commission Model This model combines two or more commission structures, typically Cost Per Acquisition (CPA) and Revenue Share. It allows affiliates to earn both a one-time payment for acquiring new players, and a percentage of the revenue generated by those players over time through revenue sharing. Example of Hybrid Commission Model Let’s say an iGaming operator offers the following hybrid commission structure to affiliates? ? CPA: $100 for each new player they refer who signs up and deposits? 20% of the operator's revenue generated by each referred player. ? Revenue Share: The affiliate promotes the operator’s platform on their website or social media, and a player clicks on the affiliate’s link, signs up, and deposits $200. The affiliate receives a one-time $100 CPA for that player’s sign-up and deposit. Over the next month, the player generates $500 in wagers, and the operator makes $100 in profit. The affiliate then receives 20% of the operator’s profit, which is $20 (20% of $100). At the end of the month, the affiliate’s earnings will be as follows ? $100 (one-time payment for the referral? $20 (20% of $100 operator profit) ? Revenue Share: ? CPA: In this case, the affiliate earns $120 for that individual player.

7. Advantages of the Hybrid Model This model combines two or more commission structures, typically Cost Per Acquisition (CPA) and Revenue Share. It allows affiliates to earn both a one-time payment for acquiring new players, and a percentage of the revenue generated by those players over time through revenue sharing. Upfront and Ongoing Earnings: Affiliates get immediate income through CPA and long-term income through revenue share. Risk Mitigation: If the player does not generate much revenue initially, the affiliate still benefits from the CPA. This model is attractive to affiliates because it offers both immediate rewards and ongoing commissions, making it a balanced and potentially lucrative structure.

8. Variable-Based Commission Structure Based on your revenue goals and priorities, any KPI can be used to assign commissions.  Affiliates promoting your iGaming brand or operation can be paid for each impression, lead or first time deposit generated by them.  Example of Variable-Based Commission Structure Let’s say an iGaming operator sets up one of the following variable- based commission structure with the following KPIs: Leads Impressions $5 $0.10 for each lead (user who signs up but has not yet made a deposit) for every 1,000 impressions First-Time Deposit $50 for each player who makes a first deposit In the first case, the affiliate promotes the operator’s platform on their website, social media, or other marketing channels. The affiliate’s ad is shown 100,000 times, so they earn $10 (100,000 impressions ÷ 1,000 × $0.10).

9. In the second, the affiliate gets 50 users to sign up but not deposit, earning $250 (50 leads × $5). However, if the third scenario plays out and out of those 50 sign-ups, 10 players make a first deposit, the affiliate will earn $500 (10 players × $50). Advantages of the Variable-Based Model Customization: Operators can tailor commissions based on their specific business goals and what actions they value most. Flexible Compensation: Affiliates are rewarded for different levels of engagement, not just for converting players to depositors

10. Points to Consider When Deciding Commissions Determine Affiliate Payments Select Suitable Affiliates Offer Commission Bonuses Analyze Competitor Rates Develop a Commission Structure Use Affiliate Program Software Select Suitable Affiliates: For a successful affiliate program, choose affiliates who understand your industry and target audience. Focus on factors like player demographics, content relevance, traffic quality, and performance consistency. Ensure they align with your brand, have good communication skills, and comply with local iGaming regulations. Analyze Competitor Rates: Offer competitive commission rates to attract the right affiliates. Research competitors' strategies, including payout triggers, commission types, and tiered structures. Understand how their margins, customer acquisition costs, and promotions impact their affiliate success, and use this information to create lucrative and effective programs.

11. Determine Affiliate Payments: Consider factors like customer lifetime value (LTV) and bonuses when setting commissions. Tools like Affnook help calculate LTV, NGR/GGR, and player bonuses, making it easier to assess cost-effectiveness. Customize commissions based on factors like location and deposit amounts to optimize payout structures. Develop a Commission Structure: Create a general commission structure for your affiliates, balancing flexibility and clarity. Set a baseline commission rate and plan for adjustments based on factors like customer LTV and competitor rates. Decide how to handle negative carryovers and maintain consistency across your affiliate programs. Offer Commission Bonuses: Reward top-performing affiliates with bonuses to motivate them further. These could include higher commissions for reaching sales goals, one-time bonuses for specific targets, recurring bonuses for renewals, or surprise rewards. Bonuses encourage continued performance and help build long-term affiliate relationships. 
 Use Affiliate Program Software: Invest in iGaming affiliate management software like Affnook to streamline tracking, reporting, and commission management. Customizable software allows for flexible commission models and detailed performance analysis, helping you attract top- performing affiliates and efficiently manage your affiliate programs.

12. Create Custom Commission Models on Affnook Auto-Invoicing and Payouts: Automate invoicing and payouts to streamline operations and free up time for campaign optimization. Tiered Commission Structures: Reward top affiliates with higher rates to boost conversions and foster long-term, high- performance partnerships. 
 Customizable Commission Models: Affnook lets you create tailored commission plans based on factors like location and performance, optimizing affiliate engagement. 
 Automated Tracking and Reporting: Automated tracking ensures accurate, real- time data for commissions, reducing errors and saving time on manual reporting. 
 Real-Time Performance Insights: Access instant performance data to optimize commission structures and quickly adjust based on affiliate behavior. 
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