I get asked this question quite a bit so I thought I would write an article about my thoughts on it.
I often get asked by fellow affiliates if they should promote via MGR or CPA. The easy answer is "It depends". But it really does. As an affiliate you need to know what kind of players you are sending to the individual programs. Although this can be quite difficult at times to really know, it will definitely help you decide which is the right decision for your business.
Personally I promote both MGR and CPA in my business but I do this depending on several factors. Some of the factors I look at are as follows:
- Is this site I'm promoting bringing in newbies or experienced players.
- Do I trust that the affiliate program will be around for a long time.
- If I were a player would I make multiple deposits there....(retention).
- How big is the aff. programs CPA versus their mgr %.
- Am I going to promote these guys long term or just for a few months.
- And last but not least..........gut instinct.
Let's look at all of these. If I am promoting to primarily newbies I often look at the fact that they are more than likely going to be at the play money tables for a while and if they do make a deposit, it will probably be minimal and they will lose it fast. They may make a few more deposits but more than likely they will lose that fast as well and move on to the next poker site as they believe this one is rigged or they had bad luck, ect.
When I say new site, I mean a site that is devoted to teaching visitors the difference between Hold'Em and Omaha or showing what the best starting hands are. If you get a conversion from a site like this, the odds are that these people are destined to lose their money at first and will move on to the next poker site. Think about how bad you were when you played at your very first poker site online. CPA is the way to go with these guys.
Now lets say that your site or promotion is more so about strategy and perhaps you have forums or many visitors that are familiar with the online poker scene. These players are savvy when it comes to depositing or withdrawing at online poker sites. These type of players may very well be able to deposit $200 and ride it out for several weeks at the tables. With that said the obvious choice would be MGR. I think anyone that has poker forums or an established community should be promoting via mgr. You should then utilize those contacts by hosting private tournaments with $5 or $10 buy-ins that forces your members to make deposits and get comfortable with playing real money at an individual site.
The next thing I look at is if I trust the affiliate program will be around for a long time. Lets face it, consolidation is happening in this industry and you shouldn't be bringing on multiple players on MGR if the card room has a large potential of being bought out in the next year or so. On the same token, think about if you would be willing to become a regular at this poker site and make multiple deposits. I may try out many of these new rooms, but the odds of me becoming a regular player at the new sites versus my old reliable like Party, Paradise, Stars, and a few others are very slim. With that criteria, you should be promoting CPA.
Minimal but still important, look at what a program pays you on CPA versus MGR. Also try to estimate your player value. If you can negotiate $150 CPA on a player versus 20% MGR (minus b.s. fees) and it is a room that meets the above criteria, then you are obviously better off sending 6 players, taking your $750 and running versus hoping that those 6 stick around long enough to generate between $3500 - $4500 MGR..
Also as a poker affiliate you have to be realistic and ask yourself how long you plan on promoting a program. Are you going to just give them a test drive or speak with the affiliate manager and truly partner with them. It is always hard to say at first, but your gut instinct about an individual program or affiliate manager can go a long way. Follow it and look at all the variables before deciding on MGR versus CPA.
In closing I am a big fan of MGR. But this is because I primarily promote the big players who I know will bring me great player retention and will more than likely not be sold any time soon. I do promote CPA but only with a few sites. If I were to start promoting the smaller guys or if I am just going to test drive a few programs I would probably take the CPA route. The most important thing to remember about promoting MGR is retention and does that poker room have good retention! If they do not then you need to look at CPA.
In my opinion if you are promoting any of the top sites, and we all know who they are, then MGR is absolutely the way to go. Build yourself a nice residual income and sit back and watch the money come in. However if your dabbling with the new sites that have minimal action, consider looking into CPA and negotiating a good deal with your affiliate manager.
Jeremy
Jun 17, 2008
