Showing posts with label commission. Show all posts
Showing posts with label commission. Show all posts

Tuesday, September 18, 2007

Choosing Commission Model For Poker Affiliate Programs

One of the most profitable niches for an affiliate marketer is with no doubt online poker. If you have a poker website making money it is fairly easy, but make sure you are choosing the right commission model for your affiliate program; fixed commission, revenue share or a combination of both. Use this fairly simple way of calculating which commission to choose.

Sending players to various online poker rooms is a lucrative business. Due to the very high competition, the poker affiliate programs need to offer very high commissions to attract new affiliates. For webmasters, this is as good as it gets.

The typical poker affiliate program offers variations of commission, making it possible for you to analyze your traffic and referred players, helping you choose the best model for you and your site. It is not always easy to know the break-even point for revenue share vs. fixed commission, but if you know your visitors, all you need is a calculator.

You need some information about the players you refer. This is sometimes hard to know, but usually you can use a rough estimate. The more information available to you, the better you will understand your players. Try to find out – or guess – the following:

  • Referred players average limit (player level)
  • Type of game preferred (limit/no-limit, stud, Omaha etc.)
  • Table size preferences (usually 6 or 10 players/table)

To find this information out, you can use any method available; a poll on your page isn’t a bad idea, one or a few easy questions will get many answers, making it easier to estimate the above details. There are numerous ways of getting to know your visitors, but that would be another topic, and therefore beyond the scope of this article. If you have no information about your visitors, or if you are yet to build your site, look at a few different levels (of limit games) to see the impact on your revenue. The same applies with table size and type of game, investigate and evaluate.

What you need to know about the affiliate program is the following:

  • Rake percentage (the percentage the poker room earns from every pot)
  • Revenue share (the percentage of the rake paid to the affiliate)
  • Average number of players on active tables (on the referrer’s player level)
Find the average number of players seated at the tables, as well as the average pot. This information is given at almost all poker rooms. If you can’t find the information in the affiliate interface, log in as a player and look directly at the tables.

Then calculate as follows:

(rake percentage x average pot x revenue share) / average seated players

This gives you the average commission for one played hand.

Look at their fixed commissions and do another quick calculation:

Fixed commission / earnings per hand

This gives you the number of hands the referred players has to be part of, before you make more from revenue share than from the fixed commission.

If you want to know the time each player has to spend in the poker room to make up for the fixed commission, all you need to find is the average pots per hour. This information is also available in almost every poker room. Then simply calculate:

Number of hands (from the calculation above) / hands per hour

Giving you an estimate of the time each player has to spend in the poker room before you start earning more than the fixed commission.

Now you have a few more parameters to consider before choosing your revenue model for poker affiliate programs, take your time – it is well worth it.

Monday, September 17, 2007

5 important factors when choosing affiliate program

Choosing an affiliate program is presumably easy, yet many webmasters won’t find the program best suited for their site. In order to maximize your online revenue, you should – before choosing program – consider a few factors.

When deciding what affiliate program(s) to use on your site, there are many factors to consider. You will, of course, have to narrow down the selection by searching for programs related to your site’s topic. But, depending on site, you will find yourself with a quite long list of potential affiliate program – All with different types of commission. What should you choose, what information is relevant, and most important, which program will make you the most money?

#1 - Size of commission

The size of commission is, of course, the single most important factor. While this is an easy factor to compare, the comparison between a fixed commission and revenue share can pose a problem. You need to look at the estimated average sale to get a figure to compare. This isn’t always easy, but generally speaking the higher the price of the product, the higher your revenue will be. This is easy enough, but sometimes the products are cheap, but people but many items, thus adding up to nice commissions. Try to evaluate the niche you are in, who are you referring? What are they likely to buy? The more information you have about your visitors, the better off you’ll be.

# 2 - Compatibility

Equally important is the compatibility between you site and the program. Are your visitors likely to click the ads? Are the likely to buy? Don’t settle for just any affiliate program in your niche, you need to find the best affiliate program available for your site. Visit the site you are advertising, have a look around. Would you shop there? Is it a nice looking, easy manageable site? If you wouldn’t shop there, odds are your visitors won’t either.

# 3 - Recurring commission

A very important, but often forgotten, variable to look at is whether or not the affiliate program offers recurring commission. What this means is: The customer referred by you stays yours for a limited time, or for life. If you find a good affiliate program with recurring commission, you do not need to send many customers before it really adds up.

# 4 – Promotional tools etc.

A very good way of further increasing your conversion ratio is to look closely at the promotional tools, banners and potential offers the affiliate program are using to convert the traffic you send. In some niches – gambling in particular - the competition is so hard they have to offer their visitors high bonuses or the like, just to stand a chance of converting them. In cases like this, you would want to promote a program offering good bonuses; otherwise you stand a much lesser chance of sending highly converting traffic.

#5 Payout frequency, type and threshold

If you are running a small site, or if you use many different affiliate programs, you will need to look at the payout threshold AND payout method. See to it you will get your commission within a fair period of time, and that they offer easy and cheap ways of collecting your commission. International checks can, in some countries, be very expensive to cash in. No fun in paying $10 dollar to cash in a $25 check, now is it? You should glance on the frequency of payments as well. Most affiliate programs pay monthly or bi-monthly, but be sure to check it out.