Try Something New with DGM

With some sectors feeling the financial squeeze and others suffering from tighter margins and reduced ROI you may well be thinking about looking at another sector or trying something different in your existing sector.

At dgm we want to provide you with as many opportunities as possible so will be running a “try something new theme” over the coming weeks and months with workshops, simple blogs, case studies etc. To kick off we take a look at the online gaming sector and the age old conundrum of whether to opt for CPA or Revenue Share.

Gaming Sector - Rev Share or CPA?

The question of revenue share Vs CPA in the affiliate gaming sector has always been a big debate and is possibly becoming more thought about as margins get tighter and competition increases in the UK and European markets.

What Models are Available?

Revenue Share

  • Typically awards the affiliate a percentage of the rake / wager. This is usually net revenue so minus fee’s, bonuses etc. Revenue is usually for the lifetime of the player

CPA

  • Is usually a one off payment for achieving a stated qualification (usually opening account plus a deposit and or wager)

Hybrid

  • This is a cross between a CPA and revenue share model. Usually both CPA and revenue share are lower and the affiliate would receive a CPA for sign-up / deposit then a revenue share for the player activity.

So as an affiliate what is the best model to choose? Well, not surprisingly there is not a right or wrong answer it completely depends on a number of factors such as:

  • The sector
    • Poker is often preferred on a CPA basis and Casino Rev Share for example
  • The client you are promoting
    • Do they have a good retention rate?
    • What is their retention strategy?
  • The demographics of your customers
    • Do your players hop from one poker room to another?
    • Are they loyal to a platform?
  • The stickiness of your website
    • Can you effectively control where the customer visits?
    • Does the customer come back to your site regularly?
  • The commission rates
    • What will your ROI be on the different commission models?
  • What is the lifetime value of your players?
    • If you have a high value then rev share would be a better option

What are the Pro’s and Con’s of these models?

Commission Model
Pro’s
Con’s
Who bears the risk?
Revenue Share
Lifetime Commission
Likely to achieve higher revenues
If client moves network / platform could lose revenue
No control over player retention & activity
The Affiliate
CPA
Upfront commission
Not reliant on client converting player
Not lifetime commisison
Could lose out on a high value player
The Client
Hybrid
Best of both worlds with CPA and rev share so lower risk
Potentially less revenue earning capabilities than either CPA or rev share
Both Client and Affiliate

 

So what do you choose?

You need to take into account all of the factors above and work out which commission model would earn you the best ROI.

If you are just starting out in the industry CPA may be preferred as your risk is reduced and you can spend time finding out what sort of players you are generating, what their value is and at a later date switch to a revenue share model.

It may be that you work on different commission models for different clients, so one client could be on revenue share and another on CPA. It may also differ per sector so poker could be on a CPA and Bingo on a revenue share.

If you would like to discuss what option is best for you please feel free to drop me a line and I will do my best to help.

Helen

helen.southgate@dgm-uk.com

 

At dgm we run a number of gaming campaigns on a CPA basis:

William Hill

Virgin Games

888

Victor Chandler

Prime Gaming

Dream Bingo