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Ever since I remember myself (I was born again when I first heard the words
"casino affiliate") I have been pondering whether casinos rip us off
- Could they vaporize our clients into thin air? Would they intentionally damage
our income?
Well, YES. Loud and clear.
Casinos steal from their affiliate partners. And sometimes those rip offs are
done in such an embarrassingly self-demeaning way that is practically an insult
to my intelligence… However, stealing from affiliates is not always the
policy of the organization itself, but an initiative of employees trying to
rake some more percentage.
How can we avoid being ripped off?
First of all, never put all you eggs in the basket of a single casino. Always
work with 3-5 different casinos. You'll make less off of each one, but in time
you'll be able to make $1,000-5,000 of each company. They'll be more hesitant
to steal from you because they have an interest to maintain this partnership.
Second, settle for less! If a casino offers you 50% on the spot, be afraid-
be very afraid…since in most cases they won't be able to pay you all the
money you're entitled to.
Here's why – a casino using Microgaming software pays the provider 25%
of its revenue. In addition it spends 6% on processing, and another 10% for
bonuses. 5% goes to the affiliate manager, 2% to the telemarketer. On top of
that add regular expenses such as customer service, employees, web hosting,
phones and computer services and hardware, development, and more.
Now these expenses can reach 40% of the revenue, meaning that the real profit
stands on 25%...assuming that it attracts players. (No wonder some casinos stall
payments that they can't afford to pay…)
Yeah, you're right! You're probably going to say "it's still worth them
while since we the affiliate carry the marketing costs" – well, right
you are, but most casinos have cash problems, so paying out an average $50 to
30 different affiliates costs them about $15,000. Exactly what they need to
get them through the month (and the bigger the casino the larger is the affiliate
payroll).
Hence the "solution" – hurting the revenue of small affiliates
to appease the big fishes. And taking your money is worth it, even more when
they're suppose to put out 40% and more.
If you are putting in your best work but your revenue is far from showing it,
have no doubt that someone is mucking up with your account – and the burden
of proof is on the casino, not you!
Yours,
Money Master
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