Gambling affiliation; what is it and how does it work? For many, internet affiliation websites will look like normal websites, just containing a large amount of third party links. At first glance running an affiliation website might seem easy. However, professionals in this business will tell you that there is a lot more to it than meets the eye. From idea, to planning, to execution, it can be a whole ordeal and take months if not years to finally see the results of your investment. However the possibel earnings must be worth it, why would so many otherwise go into this endeavour?
In this article we will discuss what affiliation and in particulair gambling affiliation is, how to start your own website, how to (possibly) make money doing this and why legal compliance is of the utmost importance. Especially regarding the subbrand of gambling affiliation, this last point is crucial. Want to find out the why, how and path to succes of gambling affiliation? Hesitate no more and read this article further!
Building a Gambling Affiliation website
There are a few things you will need when you want a succesfull gambling affiliation business. The first thing you will obviously need is a website. However websites come in all forms and sizes. Before you can create or pay someone to create a website for you, you should know what you want.
Before you can begin a gambling affiliation website, you should consider the following points:
- Budget
- Audience
- Content
Budget
Your budget should be set beforehand. Just to be clear, you will probably need a considerable budget to start your endeavor. There are of course means to scale down the budget. When you have the sufficient skills, you could opt for creating the website yourself, through means like Squarespace. This can save you thousands of Euros, especially in contrast to the budget needed for a bespoke outsource website. When you don’t have this skill inhouse however, it would probably be best to outsource it. When you have your budget set, you can move forward and making decisions will be easier.
Audience
The audience you want to reach will determine how to set up your affiliation website. This will have a direct impact on the language used, but also the type of gambling operators you can use. For example, in Europe licenses for online gamling operators are given per country and not EU wide. Outside of the EU it is the same case, with every country giving their own licenses. Some countries as the USA and Canada have delegated this responsibility for these licenses to the individual states themselves. Meaning that even within these countries there can be huge discrepencies in the gambling offer from state to state.
This gives a lot of possibilities to gambling affiliation websites on which jurisdiction to focus on. When focussing on the UK the offer of operators will be different then when you would focus on the Italian market. Gambling affiliates that focus on the UK market, regulated by the UK Gambling Commission (UKGC), write content that interests the UK consumer. Same goes for the Italian market, regulated by the Agenzia delle Dogane e dei Monopoli (ADM) or the Dutch market which is regulated by the Kansspelautoriteit (KSA). When you have done your market research and have chosen a market to focus on, it is important to tailor your site to that market. For exmaple when it is a market in a country where not many speak or can read English, using the local language is a better option.
Content
Now that you have decided on a market and possibly a strategy, it is time to fill your website with content. Preferably you will have some content ready when the website goes live. This will help in your ranking for search engines. In any case your website will have to grow. Great content will attract readers either by them sending it to each other or by organic search results. The better the content the better your ranking, the better your search engine results. Hereby it is not just about adding content, but adding useful content. You should have something to say and not just copy paste what others are doing. Of course reviewing online gambling operators will be your best option, as this will attract the most visitors. One thing you can do is to find your niche in the gambling sector. Having a niche might mean attracting a smaller audience, however it can greatly boost your website as the competition is smaller. You can establish your websites authority a bit easier when operating in a niche of the gambling market.
How to make money from a gambling affiliate website?
Return on investment is eventually the goal for your gambling affiliate website. But how does making money with such a website work? There are multiple payment structures which are viable options for your affiliate website. However, do note that when you have a small website, the options might be limited as the operators will have more of a say in what structure is used. As your websites grows and generates more traffic, negotiating the payment structures becomes more and more of an option.
In this article we will discuss three payment structures, being:
- Cost per Acquisition (CPA)
- Revenue Share
- and Flat Fee
All three options have their own benefits and shortcomings. Which one is more lucrative for you will be highly dependend on the amount of traffic you generate. But as mentioned, the larger the website and the more traffic you generate, the more you will have to say about the payment structure used. Lets dive into them.
Cost per Acquisition
Cost per Acquisition means that for every first depositing player (the acquisition) the affiliate receives a compensation. This means that when a player is revered to the operator through your website, only creating an account is not enough. The player needs to make a deposit or you will not receive a reward. In many cases the reward per depositing player can be between 100 and 700 Euros. This is however in CPA structures, dependend on how much the player deposits. Another thing to take into account is how strict the market is regulated. When the operator has to spend a large amount of its income on compliance they will probably offer a lower percentage. We still advice to operate in these markets as the high regulation makes the legality of your operation better and increases the value of your business.
Revenue share
When speaking of Revenue Share (also known as Rev Share), we are talking about receiving a percentage based on how much the player has spent at the operator. For example, when the player spents (lost) 500 Euros at the casino and your Ref Share percentage is 30% you as the affiliate will receive 150 Euros. This is just an example and percentages can get much higher. Also having a high roller as a referal, can mean that you make thousands just of one player. In many cases this structure will last for the period that a player has an active account with the operator.
One thing to keep in mind is dat in many of the Rev Share structures there is something called a ‘negative carryover’. Over a set period, usually one month, you as an affiliate will create a balance at the operator. This balance is based on the losses and winnings of the refered player. When the player loses you get a percentage, but when the player wins you can lose this amount. If a player wins a large amount the balance can become negative. No operator will make you as an affiliate pay for this negative balace, however it does mean that the player will need to lose enough money as to create a positive balance for you as the affiliate. In most cases there is no negative carryover and the balance will go to zero at the beginning of each month.
When looking at the picture above you can see that the affiliate has earned an amount of 568,84 Euros for the operator. With a Rev Share of 34% the affiliate earned 241,52 Euros. a percentage of around 30% is about normal.
Flat Fee
In some cases an operator will also choose to work with a Flat Fee model. This is mostly granted to the bigger websites. When using the Flat Fee model a gambling affiliate will receive a set fee for certain actions. These actions could for example be putting the casino at the top of the list. The Flat Fee is mostly on a per month bases, so the affiliate will receive a certain fee for every month that they have performed the agreement between parties.
The importance of legal compliance for gambling addiction
In many countries online gambling is getting regulated. For many countries this regulation has been waiting for years to be implemented. Implementation of this regulation means stricter laws to adhere to when operating in these countries. In the UK, Brazil and Italy the regulations are quite strict, with Brazil being the newest of the countries to regulate online gambling. Legal compliance when operating in regulated markets is important. When you as a gambling affiliate do not adhere to these regulation you could end up dealing with high fines and lawsuits by the regulatory bodies. Not only do the regulatory bodies and government demand compliance, operators which legally operate in such countries will also require compliance for you to work with them. This has to do with the fact that in many cases operators can be held liable for third parties they work with, which did not adhere to the applicable regulation. When operating in any legal market it is of the utmost importance to make sure you understand the legislation and implement it correctly into your business model.
Conclusion
Beginning a gambling affiliate website is not a get-rich-quick-scheme. It will take a considerable effort, as well as in the work as in time needed. You need to have a good strategy regarding your budget, the audience and the type of content you want to create. When all this is set, you can start on creating your own gambling affiliation website. Just keep in mind the multiple compensation structures as to not go in negotiations without any knowledge. Always consider which model is the best for your affiliate. Also keep in mind that each country you operate in has their own strict legislation. when widening your scope, this can mean that you will have to adapt your buseness model to these different regulatory landscapes. However with perceference and a good plan your gambling affiliate website can be a very lucrative endeavor.
