In the online gambling niche, also known as iGaming, affiliate marketers and webmasters are always searching for the most profitable offers to maximize their earnings potential. With a wide range of payment models available, such as CPA), RevShare, and other hybrid models, it can be overwhelming to determine which offer is the best fit for your specific traffic source.
In this article, we'll take a closer look at the advantages and disadvantages of these payment models. We'll also give you practical advice on how to choose the best offer for your iGaming traffic. By doing so, you'll be able to unlock the full potential of your affiliate marketing campaigns in 2024.
Understanding the CPA Model
The CPA model has become the go-to choice for affiliates who are just starting out with various traffic sources, especially those using Facebook, Google Ads, and other paid advertising platforms. Under the CPA model, affiliates receive a predetermined commission each time they refer a new player who makes a deposit.
Advantages of the CPA Model
- Consistent cash flow: One of the primary benefits of the CPA model is the steady stream of income it provides. Affiliates can count on a reliable influx of cash, allowing them to reinvest their earnings back into their campaigns.
- Easy to calculate earnings: With the CPA model, affiliates can effortlessly determine their earnings based on the number of new depositing players they refer. This predictability makes it easier to set financial goals and create budgets for their affiliate marketing initiatives.
Disadvantages of the CPA Model
- Missed opportunities with high rollers: A significant drawback of the CPA model is that it fails to consider the lifetime value of a player. Affiliates may miss out on substantial long-term earnings from high rollers who continue to make large wagers over an extended period.
- Potential for low-quality traffic: To meet CPA targets, some affiliates may be tempted to send low-quality traffic to the operator. This practice can tarnish the operator's reputation and negatively impact their bottom line, leading to strained relationships between the affiliate and the operator.
- Restrictions on earnings: To mitigate their risk, operators may implement caps on the number of commissions an affiliate can earn or reduce the EPC (Earnings Per Click) rates. These limitations can hinder an affiliate's earning potential and make it more challenging to scale their business.
- Limited access to performance data: Affiliates may encounter difficulties in obtaining key performance indicators (KPIs) that could provide valuable insights for optimizing their campaigns. This lack of transparency can make it harder for affiliates to make data-driven decisions and improve their overall performance.
Key Factors to evaluate when selecting a CPA offer
- Conversion window flexibility: The conversion window refers to the timeframe within which a player must make a deposit after signing up for an account. Pin Up Partners stands out in the industry by offering affiliates the choice of 14-day, 30-day, or lifetime registration conversion windows. Notably, the 14-day and 30-day options come with double the commission rates compared to the standard lifetime registration, giving affiliates more flexibility and the potential for higher earnings.
- Product quality and user experience: To ensure your iGaming offer resonates with your target audience, it's crucial to assess the quality of the product. Evaluate factors such as user-friendliness, player retention rates, and how well the product aligns with the preferences of the local market. A high-quality product that caters to the needs and desires of your audience will lead to better conversion rates and longer player retention.
- Availability of key performance indicators: To gauge the potential performance and earnings of an offer, request screenshots of KPIs for the specific traffic sources you plan to use. This information will give you a clearer picture of what to expect and help you make more informed decisions when selecting an offer.
- Payout frequency and terms: Consider the frequency at which the affiliate program pays out commissions and ensure that it aligns with your cash flow requirements. Some programs may offer weekly payouts, while others may have longer payment cycles. Additionally, review the payment terms and methods to ensure they are convenient and accessible for you.
- Competitive minimum deposit requirements: Compare the minimum deposit requirements across different iGaming products to determine which offer is the most competitive and attractive to your potential players. Lower minimum deposit requirements can help lower the barrier to entry and encourage more players to sign up and make their first deposit.
Long-term profitability with the Revenue Share Model (Revshare)
For affiliates who have confidence in the quality of their traffic and their ability to target the right audience, the revenue share model presents an opportunity to maximize long-term earnings. Under this model, affiliates earn a percentage of the lifetime gambling activity generated by the players they refer. This approach is particularly well-suited for affiliates with the budget to run long-term campaigns and the patience to nurture player relationships.
Example of a transparent Revenue Share Model
Advertisers have developed a transparent revenue share model that encompasses several key components:
- Total bets: This represents the aggregate sum of all bets placed by the players an affiliate has referred.
- Total wins: The cumulative amount won by the players an affiliate has referred.
- Total deposits: The overall sum of deposits made by the players an affiliate has referred.
- Gross Gaming Revenue (GGR): Calculated by subtracting the total wins from the total bets and then deducting any commissions and payment processing fees.
- Consistent revenue share rate of 40%
By providing affiliates with a clear and detailed breakdown of how their revenue is calculated, empowers affiliates to make data-driven decisions and optimize their campaigns for maximum profitability.
Revenue Share Plus Program
In addition to the standard revenue share model, some gambling offer owners and affiliate networks present affiliates with a revshare program with additional benefits that reward affiliates with incremental revenue share rates based on the number of active players they refer:
- Casino vertical: Affiliates can earn between 35% and 50% revenue share, depending on the number of active players.
- Sportsbetting vertical: Affiliates can earn between 30% and 40% revenue share, based on the number of active players.
This tiered approach incentivizes affiliates to focus on driving high-quality traffic and encourages them to build long-lasting relationships with their players, ultimately leading to increased earnings for both the affiliate and the operator.
Advantages of the RevShare Model
- Long-term revenue potential: The RevShare model allows affiliates to earn a percentage of the lifetime gambling activity generated by referred players. This can lead to big earnings over an extended period, especially from high-value players.
- Alignment of interests: The RevShare model aligns the interests of affiliates and operators, as both parties benefit from the long-term success and retention of players. This encourages affiliates to focus on delivering high-quality traffic and nurturing player relationships.
- Transparency: Some RevShare programs, such as Pin Up Partners, offer a transparent revenue sharing model that provides affiliates with a detailed breakdown of how their revenue is calculated. This transparency empowers affiliates to make data-driven decisions and optimize their campaigns for maximum profitability.
- Tiered rewards: Certain RevShare programs offer incremental revenue share rates based on the number of active players referred by an affiliate. This tiered approach incentivizes affiliates to focus on driving high-quality traffic and building long-lasting relationships with their players.
Disadvantages of the RevShare Model
- Delayed gratification: Unlike the CPA model, which provides immediate payouts, the RevShare model requires patience and a long-term perspective. Affiliates may need to wait for players to generate big gambling activity before seeing big earnings.
- Dependence on player retention: The success of an affiliate's RevShare campaign heavily relies on the operator's ability to retain players and encourage ongoing gambling activity. If the operator fails to engage and retain players, the affiliate's earnings may suffer. So this depends totally on the affiliate program you’re promoting.
To explain further the ins and outs of the RevShare model, we are going to share a Q&A with Yana, the Head of Pin Up Partners - a popular iGaming/ gambling affiliate program that works in a RevShare model.
Q&A with Yana Ryzhenkova, the Head of Pin Up Partners
Q: Yana, what are the key trends shaping the gambling affiliate industry in 2024?
A: In 2024, some of the biggest factors influencing online gambling affiliates are:
- Increased regulation and compliance requirements in many markets
- Continued shift towards mobile-first products and marketing
- Growing popularity of "gamified" casino and skill-based gaming
- More operators offering personalized VIP and loyalty programs
- More expansion into emerging markets like LatAm, Africa, and Asia
To succeed, affiliates need to adapt their strategies, diversify traffic sources, and focus on high-quality products and player experiences.
At Pin Up Partners, we've managed these challenges by staying agile and adjusting our approach for each market. For example, when entering Kazakhstan, Ukraine and Azerbaijan, we customized our messaging and offers to align with local player preferences.
Q: Why is the RevShare model attractive for gambling affiliates today?
A: RevShare deals, where you earn a percentage of player revenues, have become more attractive because:
- Operator margins are compressing, making CPA payouts less competitive
- Proving incremental value is harder with mature casino brands
- Affiliates want to participate in the upside of valuable players
- Many affiliates now have the skills and resources to optimize for LTV
I've seen this firsthand. In the early days, we worked primarily on a CPA basis. But as the industry matured, we shifted more towards RevShare. Today, our top performing deals are 40-50% RevShare in regulated markets like Ukraine. This change has driven 30%+ revenue growth.
Q: What are your top tips for running profitable RevShare campaigns?
A: After years of testing, here are my 5 keys to RevShare success as a gambling affiliate:
- Promote reputable casino/betting brands with proven KPIs and platform
- Go deep on analytics to monitor player value by product, geo, landing page, etc.
- Negotiate "fair" deals with transparency into NGR (Net Gaming Revenue) calculations and sub-affiliation
- Focus on geos and traffic sources that can deliver profitable players at scale
- Provide customized, localized pre-sell pages and email marketing to boost LTV
We have a great RevShare case study from a 2020 partnership with a leading brand. By carefully selecting push notification traffic in Ukraine, Kazakhstan and Azerbaijan, building localized landing pages, and optimizing our campaigns, we generated a 900% return on a €17K investment over 3 years. The key was finding the right fit between brand, audience and marketing tactics.
Q: Any other advice for affiliates considering the RevShare model?
A: The RevShare model requires more patience, testing and optimization than traditional CPA, but the long-term rewards can be significant. The key is finding the right operator partners and putting in the work to understand player behavior and value.
It's also critical to diversify across markets, brands and products to manage risk. I learned this lesson the hard way in 2021 when the Dutch regulations changed overnight and paused some of our top campaigns.
Finally, I'd recommend getting involved in industry events and communities like the AGD, and STM Forum. Also some of my most valuable insights have come from swapping stories with other affiliates at conferences like SiGMA and AWC. Even as a speaker, I always come away with new ideas to test. The iGaming industry evolves rapidly, so never stop learning!
Conclusion
Picking the right iGaming offer for monetizing your traffic is super important if you want to make the most money as an affiliate in 2024 and beyond. The CPA model is a good choice for affiliates who work with different types of website visitors. It gives you a predictable way to earn money and lets you put your profits back into your advertising campaigns. But it's really important for affiliates to think about certain things when choosing a CPA offer. These things include how flexible the offer is in converting visitors into customers, how good the product or service being promoted is, whether you can track key performance indicators (KPIs) to see how well you're doing, how often you get paid, and the minimum amount of money you need to deposit.
For affiliates who want to make money in the long run and trust that their website visitors are high quality, the revenue share model is a good option. Specifically, Pin Up Partners' Revenue Share Plus program can help affiliates make a lot of money over a long time. By targeting the right areas and always trying to improve their advertising campaigns, affiliates can make a really good return on their investment.
