Bojoko calls for more fairness among affiliate revenue share
Bojoko has revealed its brand new report which showcases that some partners had been paying an 8% rate for revenue share. The casino comparison site has since called for improved fairness among the iGaming affiliate market.
The report highlighted online casinos on the Bojoko website with whom it has a 45% revenue share deal. Despite that fact, the average net revenue share was around 23.9% among the casinos, and the lowest one was reported to be at only 8%. The highest revenue share mentioned in the report was 40.8%.
Chief business officer at Bojoko, Joonas Karhu, spoke of the newly-published report as he stated that it indicates that there is a long way to go in order to achieve fairness between iGaming affiliates and operators.
“We accept the need to pay fees on revenue share agreements, but those fees must be fair and transparent so that affiliates have the opportunity to discuss them before entering into an agreement to promote and operator’s brand. But the report does more than just highlight this issue – it provides solutions and steps that can be taken to ensure fairness and transparency so that both parties can maximise the benefit of the relationship.”
Additionally, casino fees are linked to many varying constituents including market taxes, marketing, bonuses, licencing fees, banking costs, admin fees and more…
“When an affiliate and operator agree to share revenue and the cost item is reasonable, it should be split evenly. When it’s a question of cost-per-acquisition (CPA), which refers to a one-time reward to the affiliate for referring a qualified new player, the operator should absorb the fees – as the industry standard is now. This is because with a CPA, the operator believes in their ability to enjoy more revenue than the paid CPA and yield a positive return on investment due to their operational excellence. But when it comes to revenue share agreements, costs should be split as the operator is not paying an up-front free for the player, rather sharing the revenues they generate over time.”
Karhu also presented further solutions, citing some including even revenue share split which is fair to both sides, improved communication from the iGaming operator to the affiliate and transparency surrounding affiliate programmes.
The chief business officer also said that the Professional Gambling Affiliate Association (PGAA) will also help out in future talks. The association was initially launched back in October and its goal is to address the polarity in the operator-affiliate relationship.