CPA vs rev share

[dividend]

Hello. I am sure this has been discussed before, however I am new to this so I would appreciate some insight. Obviously rev share has a higher potential. I am wondering if there is any suggestions as to how to pick a particular plan. I am guessing for the newer sites, CPA might be better as player retention would not be as high as the larger sites.

If there is already a thread on this feel free to simply point me in that direction.

Thanks!

[Graham]

Lots of info in this article:

http://www.pokeraffiliateworld.com/MGR+or+CPA+with+Poker+Affiliate+Programs.......+Wh at+should+I+do%3F.1.far.htm

I look at it like this, CPA if you just need to make a quick buck. MGR if you plan to be in this for a while.

[losercore]

One of the best ways to look at this is regarding your part of the industry,

Are you in this for the long run? If not, grab some CPA's
Do you have some capital to get things started? If not get some CPA's to make some money to re-invest.

The answer to this is within what you want out of your venture.

Just because a room is new does not mean CPA is a better choice. Even if you get a player that only makes you $50 a month. In 2 months you will make more than a CPA deal in most cases.

Also dependes on your niche. If you are giving away a free T-shirt for a signup you may want to go with a CPA plan to cover costs.

Figure out your over all plan and the answer will just come to you.

Do you just wnat some extra $ for beer while in college? Or do want to make a living from affiliating?

[Zilla]

I have a mix of both CPA and MGR.

Mostly MGR but I have 3 rooms on CPA including the primary room that I push.

This has meant that I have had a good bonanza from my CPA deals from the first two months my site has been operating and I can now put this money back into the site to grow it.

While at the same time I'm building a small but growing MGR player base for the future.

[Flopster]

MGR is a losing deal.

CPA is the way to go. I have been doing this for nearly 2 years. I wish I had done CPA right from the start. If so I would have done much better on most sites in my early days.

CPA has less risk from a legal aspect as well. Taking a 1 time payment for referring a player is like most affiliate marketing programs. MGR on the other hand is a cut from the casino on a players action. MGR would be harder to explain to a tax guy or the judge overseeing your case.

MGR players can drop off and you never really make your money for life as the rooms states. Besides have you had a room tell you they are cutting your account....well when you do you will understand the meaning of MGR for life.

CPA all the way.

[gder03]

mgr shot down inflames.

[Bryan]

MGR shot down in flames if you're in this for 2 seconds....

Point being... if you're a real affiliate and actually trying to make money over a time being then MGR is the way to go, otherwise simply do CPA and watch your money get flushed down the tubes.

Think about it... if you get one decent real money player then you'll be set for a while. Why not take a percentage on play?

I think mixing the two between rooms is great, but if you drive any type of real traffic... MGR is the way to go.

Bryan

[pokernut]

Anybody that says MGR is the only way to go is a DA that knows nothing about the industry. The same goes for you guys who scream CPA is the only way to go.

Every deal is different and depending on your relationships with the poker rooms one or the other can be clearly better for your situation. If you could get $400 CPA from Party Poker and sign up 500 players a month, would you still say MGR is the way to go?

For those that have not negotiated a beter cpa deal, say only $75, and a site has found a niche where they sign up whales, then the MGR at 50% would be a no brainer.

Also, if you are worried about online poker being banned in the US, then CPA is a no brainer for you.

Make you own decsion based on your own circumstances, but don't assume for a minute that the site next door is getting only $75 cpa or just 25% MGR. Once you start producing, the affiliate world changes and you have a LOT more power in what you make and how you make it.

[Bryan]

He clearly stated he is new to being a poker affiliate. Obviously as your traffic grows, so does your relationships with these rooms and ones ability to receive higher CPA's and Rev shares, but again if you look at the question... he clearly states he is new to this.

Someone who is new and has no prior relationship or track record with any sites has no pull and will obviously have to start off at the regular starting rates which is why he asked the question. And I believe people were freely stating what they thought was the best way for someone starting off.

Then Pokernut comes along and quite rudely calls me and whoever else posted a "DA" for suggesting my views which were to mix it up between rev share and CPA since he's just starting out and has no prior relationships. Please explain what "DA" is, i'm curious to know what I'm being called. Also, I'm quite familiar with the industry Pokernut and simply because someone feels something different worked for them, doesn't make them an idiot.

Also, please read the questions asked before posting rude remarks. Again, he clearly stated he is just starting out, so how would he have ANY leverage on his deals CPA or Rev?

My opinion would be to more importantly look at the type of players you are sending specific rooms and then make a decision based on that. For instance... if you're site is geared towards freerollers... chances are a good CPA deal would probably be the way to go since the majority of the players are obviously there initially for free and probably won't generate huge amounts of rev share. On the other hand lets say you run a highly visible blog or forum dedicated to high stakes poker where you see feedback from your visitors and you know they tend to play higher stakes... then a good Rev share program would probably work better.

It really comes down to one knowing their customers. Talk to them, have them fill out polls, quick surveys etc... Then connect them to the right room that benefits both you financially and them as a player.

This is why I said a mix of the two would be a good start.

Hope this helps dividend!

Bryan

[DealerDan]

Originally Posted by Bryan

My opinion would be to more importantly look at the type of players you are sending specific rooms and then make a decision based on that.

Bang! That's it right there, Bryan hit the nail on the head. It's all about who you are marketing to that should dictate CPA or MGR. Well, that and the amounts of CPA obviously

Excellent post Bryan.