Dave: Revenue Share for Sports Betting?

July 30, 2011 - by admin · Filed Under Uncategorized 1 Comment 
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    This is a guest post from Doovde who owns and runs various sports betting sites including bestbettingsites.org.

    Revenue share for sports betting? Who knows? … I do!

    Sports betting is a totally different animal from poker and casino when it comes to affiliate earnings and earnings potential. Taking rev share at betting websites is a big decision and a long term one at that. In this blog post I intend to cover all angles of rev share with sports betting programs so you can make your own informed decision.

    I’m happy to tell you right now that I take rev share every time at sports betting programs which is slightly different from what Adam suggested in his previous article about revenue share vs CPA. Below I’ll try to outline some reasons why whilst informing you about what to expect with rev share at sports betting affiliate programs.

    Rev Share Percentages

    Dave's Betting Site

    What you can earn seems like a good place to start and again you’ll find sports betting rev share percentage differ greatly from those on offer at casino or poker sites.

    Unless you are some kind of super human affiliate you are going to struggle to get more than 35% out of any top sports betting program. They operate on smaller margins than say online casino’s and as a result are more reluctant to negotiate your rates. The best way to get around this in my experience is to take the 35% offered but negotiate your casino, poker and bingo rates higher so that when you players crossover, which they will, you’ll be in a position to cash in.

    Let me tell you now that 35% is enough to make serious coin and if you’re getting it right this shouldn’t be too much of a concern for you.

    Player Trends

    I’ve found there are three main types of sports betting players you’ll sign up.

    Type 1 – The Free Bettor

    The free bettor isn’t something you can get to excited about. They usually sign up to claim the free bet offer that your program is giving away. On a positive not they normally lose this and their first deposit making you a smallish profit. If this was the only type of player you ever signed up then CPA would be the way to go.

    Type 2 – The Consistent Loser

    Now these guys you want. They make multiple deposits ranging from around $20 – $200 on a monthly, weekly and sometimes daily basis depending on how degen they are. Often type 2 players aren’t well educated enough to switch bookmakers for better odds or to take advantage of promo’s so they just bet bet bet and lose lose lose with the occasional win in there which normally gets lost again at a later date. Type 2 players are your bread and butter.

    Type 3 – Big Winner Big Loser

    Type 3 is the most interesting type of sports bettor you’ll sign up and the ratio of big winners you get to big losers is around one in four. So to be clear for every four type 3 players you sign up you’ll get three big losers and one big winner. These guys either win or lose between $2,000 and $10,000. The losers will make around three deposits getting smaller in size each time and then disapear and the winners usually make one deposit strike lucky and cash out. Obviously these are the guys you really want tracked to you.

    Notice that all three types of player loses money.

    What To Expect From 30 RMP’s Per Month

    You can expect on average earnings of between $1,500 and $2,500 per month from 30 real money sports betting players per month. However when you are on rev share this is kinda skewed because players from last month and the month before are still earning you money.

    I would assume that if you sent 30 real money players per month to one betting program which had decent retention rates in 6 months time you could expect to be exceeding the $3,000 per month earnings mark (this could also double on a monthly basis unlike CPA where your income would remain the same). Obviously if you have loads of type 1 players then this will be different or you might score lucky and sign up a few type 3 losers quickly but take the above as a rough estimate.

    Basically if you could get a $150 cpa you’d be earning $4,500 per month. Not all rmp’s would qualify for the CPA though so this number would be slightly smaller. Anyway long term you’ll earn more on rev share and a year down the line you’ll be pleased you took it over CPA. If you’re looking to smash and grab or build to sell quickly then CPA might be a better option but if you’re in it for the long haul it’s rev share all the way.  You’ll also continue to earn on revshare even if you site(s) get penalised which is always a big risk.

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