How does no negative carry-over revenue sharing work for online casino affiliates
Around eight in ten affiliate marketing programs use some kind of method for sharing revenue to distribute profits and losses among shareholders. Revenue sharing may seem complex the first time that you come across it, though in fact it is relatively easy to understand. Under a scheme for sharing revenue, anyone who has put any work ‘in’ to a business can be offered a proportionate share in the total revenue of that business. In most businesses, these people can include marketing managers, web designers, and indeed any employee, board member or stakeholder. With an online casino, the scheme works slightly differently, using ‘affiliates’. Affiliates use the scheme in order to pocket some of the deposits that players have lost when playing at that casino.
What is an affiliate of an online casino?
An affiliate of an online casino is a third party who participates in that casino’s scheme for sharing revenue. Players then ‘belong’ to the affiliates who are partaking of this scheme. This means that when those players deposit money in a casino and they subsequently lose (some of) their money, the affiliates are entitled to an automatic share in the casino’s revenue. In general, the percentage of the casino’s revenue that an affiliate will be able to recoup will be fixed by the casino. Most often, the percentage is fixed at 40%, and a principle known as no negative carry-over is applied.
No negative carry-over
This is another aspect of many casinos’ schemes for sharing revenue that affiliates can find very attractive. It means that an affiliate’s account with the casino will be periodically ‘refreshed’, usually every month, to wipe away any negative balance in that account. Therefore, if you are a casino affiliate and your players end one month of gameplay with a debt to the casino of around £400, you can rest assured that when the next month comes around, that debt will be wiped to zero. Though negatives are not carried over month by month using this scheme, positives usually will be carried over. That means that if you end one month with £1000 in your account, you will not lose it as you enter the next month.
Some examples of how these schemes work for a casino affiliate
An explanation of how revenue sharing works always benefits from some illustrative examples. Let’s take the example of an affiliate, whose player deposits £100 in a casino and loses that £100. If the percentage of revenue that they are allowed to share with the casino is set (as is usual) at 40%, the affiliate will receive £40 of that money (i.e. £40) whilst the casino keeps the remaining 60%. Affiliates can often have several players that ‘belong’ to them. For instance, supposed that there are two players that belong to an affiliate’s account. One player deposits £1000 and wins £4000 whilst the other deposits £1000 and loses it all, ending up, after some more gameplay with a negative account balance of -£3000. This negative balance will be wiped away at the end of the month, whilst the positive balance of £5000 will be preserved so that the affiliate can pocket their percentage. Clearly, this works out very well for the affiliates.
Try out this method for yourself and set up an affiliate marketing business
Setting up an affiliate marketing business for online casinos is an excellent way to make some additional revenue. Such schemes are becoming more and more popular, so it will probably be reasonably easy to find a plenty of casinos – and players – who want to work with you.