How iGaming affiliate marketing commissions work

Affiliate marketing and the iGaming industry go hand in hand when it comes to generating efficient results. To have just an idea of its potential, we have the example of a single affiliate media group that reached €106 million in revenue in 2020 from its casino, sports and financial services channels. Here, the key takeaway for operators is how powerful of a tool affiliate marketing can be when it comes to the financial growth of their gambling businesses.

This leads us to the next things you need to carefully consider: the affiliate marketing software that best fits the needs of your business and facilitates its expansion, and a commission plan capable that is the backbone that supports your whole affiliate program.

Here’s a failproof way to boost your online casino or sportsbook with affiliate marketing: keep your affiliates happy and motivated by incentivising them with top commissions, via a transparent and user-friendly platform.

The secret is to set the appropriate commission rates to benefit both the affiliates and your business. Whether you’re a seasoned marketer or new to affiliate marketing, we’ve put together a refresher in this article. It analyses the most popular types of affiliate commissions in the iGaming industry – making sure that acronyms such as CPA or FTA hold no more secrets for you while focusing on the most important aspects when configuring a commission plan.

The most popular commission types in iGaming affiliate marketing

CPA (Cost per Acquisition) commission type

The Cost per Acquisition (also called Cost per Action) or CPA is one of the main commission types in iGaming affiliate marketing. It means that the affiliate gets a one-time payment when the visitor of the website generates a deposit or another agreed-upon action with your platform.

You should determine what specific action is getting paid in this commission plan: the registration, the first deposit, or the money spent on your website. The average fixed cost has a wide range, depending on factors like your iGaming niche, or the targeted region.

Example of tier-based CTA commission

FTD (First-time Deposit) commission type

The First-time Deposit is basically a subcategory of a CPA commission, and one of the most popular commission types in the iGaming affiliate industry. It’s particularly important for operators as it boosts the acquisition of new customers who are ready to start playing. Affiliates like it especially since it’s usually also tied to an incentive for players – such as a bonus for the first deposit – making it easier to bring them aboard.

FTDs generates commissions for the affiliates only when the referred players make their first-time deposit on your website. As the operator, you get to choose to pay either a percentage-based commission or a flat fee. For example, once a player makes a $200+ deposit, your affiliate gets a $30 fixed commission fee.

Revenue Share commission type

Revenue Share can be one of the most attractive commission structures for iGaming affiliates, as it generates revenues in the long term. Instead of the affiliate receiving a one-time commission per action or acquisition, they receive ongoing payments for as long as the referred customer keeps on playing with the brand, or for a fixed period.

The paid share can vary a lot, from 5%-80%, depending on the brand offering the revenue share deal, and it can also be progressive, depending on the number of players an affiliate has referred to the website.

Example of tier-based RevShare commission

Hybrid commission type

The Hybrid commission type, as the name hints, is a combination of the first two commission models: the affiliate gets paid a one-time fixed amount when acquiring the new player, and a percentage from the long-term revenue generated for that player.

Hybrid plans usually combine the fixed commission of CPA deals and a percentage of the monthly revenue that a player spends on your gambling website.

For example, your affiliate program can offer $25 CPA and 15% RevShare for the same revenue that the same player generates during their first three months. As usual, the amounts and percentages can depend on the region your affiliates operate in, target groups, payment methods, and several other factors.

What should you consider when configuring commission plans for your casino?

Of all the factors that make your affiliate program attractive for top affiliates, commission plans are probably the most important. The affiliates’ engagement is directly influenced by how profitable the partnership is, so make sure you make them aware of all the details before they start working on your project.

To design a commission plan fit for a successful affiliate business, make sure you go through the steps below.

• Show the real cost including deductions. Be fair with your affiliates

Many operators are hiding the real amount that they will pay to their affiliates. This includes transfer deductions, taxes, various penalties, and so on. Notify your partners in advance to avoid disagreements and further problems!

• Analyze your competitors’ commission rates

An important aspect in creating a successful affiliate channel is knowing how your competitors develop their commission’s rates strategy. This will help you to create competitive rates in your region and for your audience.

• Configure your primary commission plan

While this doesn’t exclude custom commission plans for unique affiliates, you need to develop a general structure of commission types to offer across your website, media and other marketing channels. Your affiliate program can use several types of commissions simultaneously.

• Determine your offers’ duration

Make sure you set timeframes for your offers, balancing their attractiveness for affiliates with the needs of your business. For example, you can offer to your affiliates higher Revenue Share rates for the first three months after a new player registers, and then pay them a commission based on the CPA model in the upcoming year.

• Decide if you’ll offer commission bonuses

Another good practice is offering special bonuses for active affiliates. For example, you can reward those affiliates who bring more than 1,000 players monthly with a $1,000 fixed bonus. Such bonuses will engage more new affiliates and motivate existing ones.

• Choose the right payment methods for your affiliates

Your affiliates might come from different parts of the world, so keep in mind that they give priority to certain payment methods for their commissions. Before integrating a payment system into your platform, research which currencies and payment services you might need. You can also choose an affiliate software with an integrated payment system, reducing your operational load.

The final ingredient: the right affiliate marketing system

Carefully crafted affiliate marketing programs need one more crucial component to generate the right level of engagement: an affiliate marketing platform that supports flexible configurations for your commission plans.

With PartnerMatrix, you get a powerful affiliate marketing system to cover all your needs, including payments, segmentation and commission tools, live data and marketing tools, as well as a unique anti-fraud system to ensure the security of your affiliate campaigns.

The software platform represents the ingredient that ties everything together, making sure you can tailor profitable affiliate marketing programs with all the operational flexibility and efficiency you need.