Understanding FTP Affiliate Partnerships

May 13, 2010 - by admin · Filed Under Uncategorized Comments Off on Understanding FTP Affiliate Partnerships 
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    Why do Full Tilt Poker and BWin Treat Affiliate Partnerships with so little respect?

    I decided to write this post after it emerged that FTP had recently changed their affiliate terms and conditions which means that FTP can terminate affiliate accounts whenever they want.  The full post is listed here: PAL FTP Thread.

    It amazes me how little respect the board of FTP gives to affiliates. From a pure financial standpoint, it’s a great strategy from FTP since effectively they can  stop paying affiliates whenever they want.  But I just don’t understand how one of the world’s largest poker sites can neglect some of their partners in the affiliate world like this to such an extent.  Even if they only rely on affiliates a little bit, it just makes good business sense not to piss of your stake holders and business partners (aka affiliates).

    Clearly these decisions to screw affiliates are not 9am early morning rushed decisions. They will have carefully planned and analyse the gains/losses in boardroom meetings, with presentations and case studies from the past, UIGEA 2006, legalised US poker, and any future potential law suits etc etc.  It’s just sad that they have so little respect for affiliates – not even enough to honour their original terms and conditions.  Another case study of a large European-based gaming company, Bwin, scewing over affiliates can be found at Belosers.com.

    To be truthfully honest, I would rather just read FTP’s discussions and executive statements as to why they’ve made decisions to deprecate affiliate partnerships as opposed to just changing their clauses time and again.  To me it seems as though they are trying to stop small-time affiliates making money off players they refer to them since they don’t really provide any benefit to FTP to merit being paid. They are a bit like fleas referring one or two players and then for some reason receiving 30% of the profits that they generate. But they must obviously have some respect for larger affiliates who send them pools of 100+ players per month and actually deserve the recognition and original partnership agreements.  Possibly they’re trying to cut down on affiliate costs from AMs by only concentrating on their best partners and getting rid of smaller ones clinging to their cloak-tails.  We’ve all been there for example when someone owed a small $50 or $100 fee is arraigning the affiliate support team when in reality it just isn’t worth their time to look at or correspond to.

    Personally, I think there must have been a point in that meeting where someone noted that big affiliates are so dependent on FTP revshare plan that they cannot afford to have their accounts closed so will continue promoting FTP to hang on to their player base.  This alone is probably 90% of the reasoning behind everything.  Perhaps if everyone was on a CPA contract then FTP would essentially look at the situation a different way, decide that they lack the same leverage over long term big affiliates and commit to a better partnership.

    It would be interesting to see which affiliates (if any) are changing from rev share to CPA at FTP.  Don’t get me wrong, if you’re referring good players on rev share than it is still very lucrative to keep to it, but the fact that on principle you’re having players taken away from you must make you at least think more about CPA just to remove any additional furvor it causes you.

    Finally, I’d just to thank both Peter Willis at http://www.gambleselect.co.uk/ and Kaus at http://www.slotsgeek.com/ for helping me sort out some wordpress problems earlier this week.  Both of them are the type of affiliates or people that I admire to be; not only successful but happy to help newer affiliates out.

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