Given the number of times gambling companies have been criticized for misleading advertising, it is reasonable to assume that most operators are now striving to make their marketing more transparent.
However, when it comes to selling themselves to affiliates, operators often fall short in delivering on their seemingly generous revenue share deals.
A recent report by Bojoko uncovered some alarming findings regarding the level of deductions for affiliates. On average, the net revenue share after fees was only 23.91% – almost half of what was initially advertised.
This lack of transparency regarding fees is a major concern for affiliates. While they understand that fees are part of the business, there is rarely clear definition of what these fees encompass and how much affiliates are being charged.
As a result, affiliates often find themselves partnering with brands that promise higher revenue shares, only to realize later on that the deductions are much higher.
Bojoko suggests that operators should provide a detailed breakdown of fees and be more transparent about what it means for the actual revenue share received by affiliates.
This lack of transparency not only affects affiliates’ ability to make informed decisions about which brands to partner with, but it also hinders their ability to grow their own businesses.
Some operators, like MrQ, have taken steps to address these concerns by implementing a flat fee structure that includes all deductions. This transparency allows affiliates to negotiate a fair revenue share.
While increasing fees may be necessary due to market regulations and rising taxes, it is crucial for operators to provide clear information about these fees and their impact on revenue shares.
Ultimately, both operators and affiliates need to work together to establish fair and transparent partnerships that benefit both parties. This may involve renegotiating terms or walking away from deals that do not meet their requirements.
Only through open communication and fair practices can the industry reach a point where both operators and affiliates feel their partnerships are working fairly.
