Best practices: How casinos use affiliate marketing as a growth strategy

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Knock Knock. Who’s There?
If you were lucky enough to be a homeowner during the nineteen seventies and early eighties in the UK, then it’s likely you would, at some point, have had a knock at your door from a young, smartly dressed gentleman trying to sell you double glazing. These salespeople generally worked on a commission-only basis, meaning if they failed to sell any of the company’s products, they wouldn’t get paid.

Assuming the double-glazing companies had a competent workforce out there selling their window products, it was a sales technique that worked well for both the company and employee. It saved window companies a lot of money on advertising, which has any businessperson knows, is a big chunk of any budget.

Sales Evolution
Today’s equivalent of those barmy days of door to door salespeople selling their products via a third party is affiliate marketing. The merchant and the affiliate marketer replace the double-glazing company and salesman of yesteryear. The number of products sold via affiliate marketing is seemingly endless. From electronics to food supplements, from menswear to ladies’ lingerie, and yes, you guessed it, double glazing.

In simple terms, this type of sales technique works in three easy steps. Promote, sell, and commission. The affiliate will promote a company’s product or products and earn a cut of any sales that this third-party advertising attracts. Of course, it’s not all that cut and dry. A lot of hard work and research would have to go into what products you promote and the affiliate schemes you sign up to. But a lot of money can be earned from this type of business by both the merchant and affiliate. This is why online casinos and other gambling nature websites choose this way to attract new customers. You can find out more details on the overall concept of affiliate casinos from our article here.

Casino Affiliates – You’ve Probably Encountered Them If You Gamble

Before we get into exactly why casinos use affiliates, I think it would be better to show an example of casino affiliates – take for example Japan 101. This is a site which promotes in the Asian market for large casinos such as Cherry Casino, Lucky Niki, Vera & John.
But how do they do it?
It’s quite simple actually, Japan 101 provides a high quality break down of the casinos and why you would want to consider using them. Take for example this guide for Cherry Casino. When a user comes to this page Japan 101 breaks down everything you would want to know about Cherry Casino, from the history of the casino, through to games that you can play and the bonuses that you can get, they even cover the customer support offered by Cherry Casino.
So as a user it answers all your questions that you might have before signing up for Cherry Casino and it’s done from an unbiased point of view and when you sign up for the casino Japan 101 gets a kickback in return which doesn’t cost the user anything.

But now let’s cover the nitty gritty details on how and why this is an effective growth strategy for casinos.

They Lose, You Win….then again!
There are winners, and there are losers at any online casino; it’s the nature of the game. When you attract new customers to an online casino through your affiliate link on your website or blog, some of these online gaming sites will pay you a percentage of everything their new customer loses, so in effect, they lose, you win. This is known as revenue share, and percentage commissions vary from site to site.

This sounds great on the surface, but affiliates need to read the small print carefully before signing up for this type of commission-based program. You need to be aware of something called ‘negative carryover.’ This means when your sign-up wins, you lose, resulting in a negative balance in your affiliate account. Negative balances are sometimes wiped clean at the end of the month, but not all affiliate programs do this, so beware.

Cost Per Lead
This is another way affiliates can make money from online casinos. Otherwise known as CPL, these one-time deal offers to allow affiliates to earn money every time a new customer is directed to the gaming site via the third-party link, signs up, and makes a deposit. The affiliate’s end of the bargain ends here. There is no need for him to get the customer to spend any money while online at the casino.

Cost Per Acquisition
As it’s otherwise known, CPA involves affiliates attracting new customers to online casinos and making a deposit. On the surface, it sounds very similar to a CPL, but there is a difference. With this type of program, a new customer would have to deposit a minimum amount set by the casino before the affiliate receives any money. Not only this, but some online casinos may stipulate that the new sign up has to wager some or even all of the deposit amount before any payment is forthcoming.

Simple Yet Effective
Online casinos benefit in several ways from using affiliates. None more so than having new customers directed to them with little effort on their part. It’s also kind of like having a deck of cards face down on the table and knowing what’s underneath before they’re turned face up. By utilizing affiliates, a casino is basically paying for something that has already been achieved, rather than investing a lot of money into the business without knowing whether it will result in success or not.

It’s cards on the table time. If you’re unsure just how effective affiliate marketing is to online casinos just consider this for a moment. By 2024 it is reckoned that the online casino business will be worth over ninety billion US Dollars. And there are many affiliate marketers out there making ridiculous amounts of money. Everyone’s a winner it seems.

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