There is a branch in the i-gaming industry which deserves much more recognition than it currently gets: affiliates. These are self-made individuals or companies that help bring traffic or new deposit players to remote gaming sites. Affiliates are considered a vital element because they help secure a stream of healthy traffic to a website, increasing the number of new deposit players.

A company owning a poker website strikes a deal with a reputable affiliate, whereby the latter gets a commission for every new deposit player acquired by the site owner. Tracking systems exist which allow both i-gaming company and affiliate company to verify from which lead a player is coming.

The affiliate system has become a custom way to promote a remote gaming website because its main advantage is the reduced risk: payment is only made when a new client deposits money.

The payment or commission can take various forms, the most popular being cost per acquisition (CPA), revenue-share or a combination of the two. With CPA, the affiliate receives a one-time fee, which may go up to a staggering €500 for every quality deposit player. In contrast, with a revenue-share deal, the affiliate splits the revenue every time a player deposits money.

There are various factors that both remote gaming companies and affiliates must consider when launching an affiliate deal.

• Reputation of the company and popularity of the brand

It is easier, for instance, for an affiliate to promote a brand that is marketed heavily on TV and newspapers. Pokerstars is one such popular brand that advertises a lot on TV. In fact, due to its popularity, Pokerstars was recently sold for $4.9 billion to Amaya (which has 10 per cent of its operation running from Msida). Its shares sky-rocketed following the acquisition;

• The CPA or revenue-share deal

A good CPA or revenue-share deal will also entice an affiliate to start marketing for that i-gaming company;

The affiliate system is now a custom way to promote gaming websites

• The bonus offer

The i-gaming company often provides an incentive for new players to open an account and deposit money, such as a 100 per cent welcome bonus, where the player gets double the amount deposited, or perhaps a number of free spins for bingo sites;

• The quality of traffic that an affiliate can bring

An affiliate that can bring quality traffic from Nordic, German or UK countries is often given better revenue-share or CPA deals than an affiliate who is focused on other markets, say East-European, simply because the players from those markets are more valuable.

There are several studies that indicate that less than 10 per cent of all existing affiliates worldwide may be responsible for up to 95 per cent of profits generated through affiliate marketing.

This is why remote gaming companies invest a lot in recruiting affiliate managers who know the best affiliates on a one-to-one basis. The role of this department would be to acquire affiliates to work and generate quality traffic to their site. In Malta, it would benefit the entire remote gaming industry to invest in creating the right setting for affiliates to relocate here by offering them advantageous tax and other incentives. This is where the Lotteries and Gaming Authority (LGA) can work hand in hand with Malta Enterprise and possibly even the Malta Tourism Authority.

Affiliate marketing is based heavily on relationships. By having quality affiliates set up operation in Malta, one would provide i-gaming companies with an added reason to stay. Why would a company relocate if its main source of new deposit players is based in Malta as well? Malta boasts an ideal setting for affiliates a good work ethic and quality of life, 250+ i-gaming companies registered in Malta as well as a strong 8,000 workforce, directly employed in i-gaming. It is important that the government maintains a holistic vision on remote gaming in order to guarantee that the industry keeps flourishing against any odds.

Mr Pulis is responsible for SiGMA, the i-gaming summit, taking place in Malta between October 31 and November 1.

www.maltaigamingsummit.com

Eman Pulis is the CEO at Viking PC Health Ltd.

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