Operating in the iGaming business gives ample opportunities for different forms of endeavours. One endeavour you can pursue is starting your own iGaming affiliate website. It is certainly less costly than starting an online casino. Of course the revenue cannot be compared not a one to one, but a very good living can still be made. For instance, using programs as Affiliate Revenue Share can generate a steady flow of income.
In the article below we will discuss iGaming affiliation and particulairly take a deep dive in the Revenue Share model used in this industry. Explaining how you can make money using it.
iGaming affiliation industry
Chances are that when you think about gambling the main focus goes to the online casinos. This is completely logical, as those are the parties you will hear the most about. As the iGaming market is expecting to reach around 153 billion dollars in value by 2029, even receiving a small piece of the pie, can still mean generating a large revenue.
But what is iGaming affiliation? Quickly explained; iGaming affiliation is when a business uses a platform, typically their own internet website, to generate leads for online casinos. These leads are players which enter the website of the affiliate and are send to the online casino. A special tracking link then tracks which player came from which affiliate. Any proceeds made are then shared with this affiliate. The affiliate can receive a ‘piece of the pie’ this way and shre in the revenue of online casinos. The casino receives new customers and the affiliates receives a compenstation, everyones happy.
Strategy
Receiving visitors is the hardest part. Competition can be quite brutal, especially for the smaller affiliate companies. A good strategy however, can make is much easier to generate traffic and get you closer to that revenue.
There are a few basics you need to consider when starting an iGaming affiliate business. These are mainly your target focus, the type of content to create and what type of income structure you will use.
Your target focus should be clear, well of course you will focus on people that are interested in gambling. But what you mainly want is attracting new players for online casinos. These are the players casinos will pay you money for. If the player is already registered you will receive no compensation.
New players are also more likely to look up casinos to get more information before playing. Receives are therefor always a good bet to start when generating content. Just make sure the information is accurate and insightful. Having your own format will help with the authenticity and ranking of your website on search engines. These will also rank your website on how good the information is, not just on how much content you have.
Last but not least is your revenue model. Generally there are three models used in the iGaming affiliate business, being Cost per aqcuisition (CPA), Flat Fee and Revenue Share. You can find more information about CPA here and more information about the flat fee revenue model here. We are discussing the Revenue Share model in detail below.
Affiliate Revenue Share
But how does generating this income actually work? The basics we meantioned here above. The Revenue Share model is widely regarded as the most populair form of revenue model within the iGaming affiliate model. Does this mean there are no negative sides to this model? Well there can be, but let us first explain what Revenue Sharing is.
When you use the Revenue Share model the revenue the online casino makes, from the leads you generated are shared with you as the affiliate. What this means in practice is that for every amount the player loses, the affiliate receives a share. This share depends on multiple factors, such as how much revenue it is and how big your website is. However shares of around 30% are not uncommon at all. This means that for every 500 dollar the player loses at the casino, the affiliate receives 150 dollars.
Now 150 dollars does not seem as much, but if you generated 10.000 leads in a year your revenue can sky rocket. You can also get lucky and gat a high-rolling lead.
Not always positive
This can seem as fairly easy money, but of course this is not always the case. As said every lead must de a first time depositer, so a new client for the casino. Also they must lose money before you will receive anything. When they win or only use bonus money, the affiliate gets nothing. It can also happen that over a period of a month a player can get in the green and you will see your revenue evaporate. A month is typically the standard period online casinos will track your revenue earnings. Earnings are then set at zero again after this month.
This has the benefit of removing the negative amount, when the player is in the green. when the player loses again the revenue will again start to amount. Also don’t be alarmed by a ‘negative balance’, online casinos typically don’t charge these to affiliates.
Revenue sharing is therefor very lucrative as for the affiliates there are only upsides and no negatives. You can’t ‘lose’ any money only gain it through this structure.
Conclusion
Revenue share can be a great way to generate income through iGaming affiliation. But you have to take in account the points above. Want to make sure you are operating legally within a country? At QMRA we can help you with that, performing audits of iGaming affiliate website in multiple jurisdictions. Adhering to our quality mark can greatly increase the value of your iGaming affiliate business. For more information on how we can help you, take a look here!
