How to Start An Affiliate Program in iGaming Software?

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how to start an affiliate program in igaming software

Introduction

The iGaming sector with online betting websites, online gambling, and online gaming has developed at a rapid rate in recent years. The global market size of online gambling, based on a Grand View Research report published during 2020, was worth $66.7 billion and is expected to have a compound annual growth rate (CAGR) of 11.5% between 2021-2028. With competition in this market escalating, operators find it challenging to acquire players amid the high level of competition. To do this, most iGaming operators have opted to use affiliate programs as a strategic means of increasing visibility and player recruitment.

Affiliate marketing has been an important instrument in the iGaming industry. In a report by Statista in 2021, affiliate marketing represented 15% of digital marketing revenue globally. This performance-based marketing tactic allows iGaming websites to expand their user base through cooperation with affiliates who market their services to future players, rewarding them on the basis of the players' activity. By leveraging the right iGaming software, operators can effectively manage their affiliate partnerships and optimize their programs. Throughout this blog post, we will walk you through the most important steps to starting and running a successful affiliate program in iGaming, highlighting the important role these programs have in player acquisition as well as revenue growth.

The Role of Affiliate Programs in iGaming

Affiliate marketing is a major part of the iGaming industry. Primarily, affiliates are third-party individuals or entities that market iGaming sites and earn a commission for bringing in players to the site. The affiliate marketing scheme is based on the fact that affiliates are paid based on quantifiable results, like clicks, sign-ups, or activity by players.

How Affiliate Marketing Works in iGaming

Affiliates usually employ numerous internet sources like blogs, YouTube, social media sites, websites, and mobile newsletters to advertise iGaming sites. They usually do this through exciting offers, promotional bonuses, or game reviews in depth. The moment a player clicks on the affiliate's referral link and creates an account or adds funds, the affiliate is paid their commission immediately. The commission may be derived through models of either Cost Per Acquisition (CPA), Revenue Share (RevShare), or a combination of the two in a hybrid model.

The Expansion of Affiliate Programs in iGaming

The past decade has seen affiliate marketing in iGaming skyrocket with the escalation of online gambling. As players are increasingly seeking more and more the convenience of placing bets, playing games, and sports betting from the comfort of their homes, the demand for affiliate marketing has kept pace. Affiliates have emerged as a successful medium for signing up players of various profiles and markets. iGaming operators can extend their presence into new markets, using existing traffic affiliates.

Benefits for iGaming Operators and Affiliates

Affiliate marketing is low-risk and inexpensive for iGaming operators. Operators only pay for performance, so they don't have initial marketing outlays. Affiliates, on their part, can earn significant revenues marketing platforms that have an already existing base of players. Therefore, an affiliate scheme is a win-win: affiliates receive exposure to a broad range of would-be gamblers, while operators receive commission on the quality and quantity of traffic generated.

Understanding the Basics of Affiliate Marketing

Prior to going through information about running an affiliate program, one must be familiar with the fundamentals of affiliate marketing for iGaming.

Affiliate Networks

The affiliate network brings together iGaming portals and affiliates who want to market them. The network is an intermediary between the operator and affiliate, providing a middle ground for handling affiliate relationships, performance tracking, and payments processing.

Commission Models

The iGaming business provides a number of commission schemes that establish the way affiliates are rewarded:

  • CPA (Cost Per Acquisition): A fixed fee given to affiliates for every player who completes a certain requirement, e.g., first deposit.

  • RevShare (Revenue Share): The affiliates receive a percentage of the revenue the referred players generate throughout their lifetime. It is usually regarded as a longer-term model because the affiliates gain profit from the brought-in players in the long run.

  • Hybrid Model: A mixture of CPA and RevShare, offering the affiliates a fixed amount for the initial sign-ups and a share of the revenue yielded from the players.

Tracking and Reporting

Affiliate software is critical in monitoring the performance of the affiliates. Software such as Income Access, Affilka, and Post Affiliate Pro helps operators monitor metrics such as the number of clicks, sign-ups, active players, and the revenue which the players bring in. Transparent reporting that is accurate is fundamental to trust development and relationship handling with the affiliates.

Setting Clear Goals and KPIs for Your Affiliate Program

Specific objectives and KPIs are the indicators of success for your affiliate program. In the absence of specific objectives, it is difficult to measure performance, track effectiveness of affiliate campaigns, and maximize strategies.

Player Acquisition and Revenue Generation

The key goals of the majority of iGaming affiliate schemes are:

  • Player Acquisition: Recruiting excellent players who deposit and play on the site.

  • Revenue Generation: Generating maximum revenue by turning referred players into long-term, paying users.

KPIs to Measure Performance

Having quantifiable KPIs enables iGaming operators to measure the success of their affiliate scheme. Some of the most widely used KPIs to track are:

  • Conversion Rates: Number of users who convert on the target action (e.g., sign up, deposit) after clicking through an affiliate link.

  • Average Revenue Per User (ARPU): Average revenue per user earned within a time frame.

  • Affiliate Performance: Statistics that approximate how well performing any affiliate is, such as traffic quality and conversion rates.

Choosing the Structure of the Commission

Selecting the best commission structure will be determined by your business model and objectives. Flat fees (fixed CPA) are chosen by some businesses, and long-term relationships are preferred by others with a RevShare structure. The right strategy will meet the need for urging affiliates while accommodating the business's financial objectives.

Selecting the Right Affiliate Software

The proper affiliate management software is an essential consideration in operating your affiliate program effectively. With the proper tool, you can handle relationships, monitor performance, and pay correct amounts.

Affiliate Software Must-Have Features

  • Real-Time Reporting: You must be able to view real-time information for clicks, sign-ups, deposits, and commissions.

  • Payment Automation: Pay affiliates on time without any manual intervention. This involves installing automated payment mechanisms through bank transfer, PayPal, or even cryptocurrency.

  • Fraud Prevention: Fraud detection software is employed to prevent affiliates from cheating by sending bot traffic or scamming players.

  • Integration with iGaming Platform: Your affiliate program must integrate seamlessly with your platform, providing you and your affiliates with an integrated experience.

Building and Structuring Your Affiliate Program

With you having established the groundwork and the appropriate tools, you can now construct and assemble your affiliate program. Here are some recommendations for developing a program that will appeal to high-end affiliates and give you results.

Define Your Commission Model

Will you use RevShare, CPA, or Hybrid? The commission model that you use should fit your business's financial objectives and the way that you wish to reward affiliates. RevShare models tend to be best for long-term revenue production, while CPA might be a good choice for instant conversions.

Set Affiliate Tiers

A tiered commission structure can motivate affiliates to work harder. A higher-tier affiliate may be paid a greater percentage of the revenue share or higher CPA rates.

Set Up Promotion Tools

Elevate promotion for affiliates by making it easy for them with pre-written materials such as banners, landing pages, and emails. These should be in the tone and style of communication used by your brand.

Recruiting Affiliates and Building Relationships

Hiring quality affiliates is critical to the success of your program. Your mission is to hire affiliates with a mass and targeted market, high-quality traffic-generating potential, and are quality revenue-producers.

Targeting Potential Affiliates

To hire affiliates, use the following strategies:

  • Affiliate Networks: Partner with established networks that have affiliates in your market. 

  • Influencers and Content Creators: Hire influencers and content creators in the iGaming niche who already have an audience.

  • Industry Conferences: Go to affiliate marketing and iGaming conferences to meet people and find potential partners.

Relationship Building

Have solid affiliate relationships. Provide dedicated support, provide incentives, and maintain open lines of communication. Foster a trust relationship which will lead to long-term success for both entities.

Compliance and Legal Considerations for Affiliate Programs

The iGaming industry is regulated severely, and compliance with local and global regulations is of paramount concern. Failure to comply with the law may result in legal sanctions, penalties, or termination of affiliate programs.

Compliance with Gaming Laws

Make sure your affiliate program is in accordance with gambling law in all the territories you are present in. Every area has particular legislation with respect to advertisements, player recruitment, and affiliate behaviour.

AML and KYC Processes

Affiliates need to adhere to Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures to validate referred players and prevent them from engaging in fraudulent schemes.

Data Protection and Privacy

Since the application of data protection acts like the GDPR, there is a need to ensure that affiliate schemes comply with privacy conditions of player data.

Tracking, Reporting, and Paying Affiliates

Monitoring and reporting of affiliate performance effectively is advantageous to both affiliates and iGaming operators.

Affiliate Tracking Software

Utilize affiliate tracking software to give affiliates instant feedback regarding their performance. Honesty is the best policy when ensuring strong relationships and that the affiliates are paid in a just manner.

Affiliate Payments

Set sensible payment schedules (e.g., bi-weekly or monthly) and offer several payment options such as bank transfer, PayPal, or cryptocurrencies to suit affiliate preference.

Continuous Program Optimization and Support

After launching your affiliate program, continuous optimization and support are the secrets to lasting success.

Continuing Support

Remind affiliates of fresh promotions, game launches, and program updates on a regular basis. This keeps affiliates active and exposes affiliates to the newest information to promote.

Maximize Relationships

Use data insights to maximize your commission structure, marketing materials, and affiliate recruitment to drive maximum performance of your program.

Conclusion: Growing Your iGaming Business with a Successful Affiliate Program

Starting an affiliate scheme in the iGaming sector is very profitable. Through the use of affiliate relationships, you can construct player recruitment, expand the presence of a brand, and create long-term return. Having the right tools, setting objectives, and relationship-building and compliance focus, an affiliate program can be a driving force in your iGaming enterprise.

At AIS Technolabs, we are committed to helping iGaming operators install and maximize affiliate programs. Our seasoned solutions give you the tools and advice you require to efficiently manage affiliates, measure performance, and comply with regulations. You can count on AIS Technolabs to maximize your affiliate program's potential for driving player acquisition and revenue growth, whether you are beginning or expanding.

Disclaimer

This blog is intended for informational and educational purposes only. We do not promote or facilitate gambling activities in any country where it is considered illegal. Our content is focused solely on providing knowledge about legal and regulated markets. We only work with operators and platforms that are licensed and comply with the laws of jurisdictions where casino gaming is permitted. We do not operate or endorse any form of gambling in restricted regions. In countries where only skill-based games are allowed, our involvement is strictly limited to those games.

We believe gambling should be an entertaining and responsible activity. Our goal is to ensure that the platforms we review uphold the highest standards of fairness, transparency, and player safety.

FAQs

Ans.
iGaming affiliate advertising is an internet-based, pay-for-performance type of promotion wherein third-party affiliates promote an iGaming website and are paid only when they refer a player to the website, depending on what those players do (e.g., register, deposit, or other player activity).

Ans.
An affiliate program enables iGaming companies to extend themselves even more, attract players from growing markets, and generate revenue with no initial cash expense because affiliates are paid merely for results (e.g., signed-up or deposited players).

Ans.
iGaming companies usually pay affiliates in various models, including:

  • CPA (Cost Per Acquisition): A flat fee per referred player.

  • RevShare (Revenue Share): A share of revenue earned by the referred player.

  • Hybrid Model: A blend of CPA and RevShare.

Ans.
Some popular affiliate tracking software solutions for iGaming are software applications such as Income Access, Affilka, and Post Affiliate Pro. Such solutions provide features such as real-time reporting, automatic payment, fraud blocking, and support for integration to be utilized on iGaming platforms.

Ans.
To hire affiliates, you may approach affiliate networks, influencers, and content providers who operate in the iGaming sector. You may also attend industry events or utilize directories to find affiliates for an affiliate program.

Ans.
Adherence to gaming law, anti-money laundering practice, Know Your Customer requirements, and data protection guidelines (i.e., GDPR) is a prerequisite for running an affiliate scheme in the iGaming sector.

Ans.
The activities of affiliates can also be monitored through affiliate management software. Some of the most critical key performance indicators (KPIs) are the conversion rate, average revenue per user (ARPU), and total affiliate performance, which are observable through detailed reports.

Ans.
Affiliates may be paid in many forms, i.e., bank drafts, PayPal, or cryptocurrencies. Bi-weekly or monthly payment deals are feasible, and timely payments are extremely important in order to sustain affiliate relationships.