In the brutally competitive iGaming’s niche the fight for customers is literally a billion-dollar-war. Whilst traditional marketing like TV ads has its place, the true lifeblood of the local industry is a performance-driven machine: casino affiliate marketing.
And for founders jumping into the nest, getting a handle on the above model isn’t just implementing another brand-new tactic – instead, it’s a requirement for both survival and growth there.
Read on, and we’ll explain what’s what and why.
The performance-based pact: A risk and reward symbiosis
Basically, the iGaming affiliate model is a performance-based partnership.
Yet unlike ‘traditional’ advertising where companies pay for vague impressions or clicks, iGaming operators only pay affiliates when a specific, valuable action happens. This creates an alignment of interests and also a pretty clear separation of jobs.
The main ways affiliates get paid are:
- RevShare – the most common model. Here, the affiliate gets a pre-negotiated percentage generated by the players they refer, for as long as that very players are remaining active. The model builds long-term partnerships, as affiliates are incentivized to send over loyal players who will actually stick around and play, and not just chase a sign-up bonus. For the operator, it means their CAC is directly linked to LTV, which’s a more sustainable way to grow, even if it’s a slower burn.
- CPA – under this, the operator pays a fixed, one-time fee for each player who does a specific thing, usually making their first deposit. CPA is great for an operator’s budget predictability – they know the exact cost of each new customer. For affiliates with firehoses of traffic, it’s a faster, guaranteed payday. The downside is it can sometimes misalign incentives, therefore encouraging affiliates to focus on quantity over quality.
- Hybrid models – the savviest partnerships often mix these models. A typical setup is a lower CPA fee upfront to cover the affiliate’s immediate costs, which then later flips into a RevShare. This balances the affiliate’s need for quick ROI with the operator’s goal of building a profitable and long-term player base.
On the whole, this performance-based structure is designed to spread risk: the operator transfers the upfront risk of customer acquisition to a network of entrepreneurial affiliates. These affiliates, in turn, invest their own capital in building websites and creating content, betting on their ability to deliver results.
Scalability: The double-edged sword
The affiliate model is ridiculously scalable, which’s exactly why it owns the iGaming landscape. An operator may bring on hundreds of partners without having to hire a proportional number of in-house marketing people.
This creates a massive sales force that works around the clock. And across the whole globe.
However, the scalability is a somewhat classic double-edged sword that founders have to manage carefully:
- The upside – one may enter new markets and reach a global audience almost overnight: a single partnership with a major affiliate site can dump thousands of players into a new brand, therefore making it relevant instantly. The model also lets to quickly test new markets to see what kind of affiliate content (betting tips, slot reviews, and so on) works best for the exact product.
- The downside – scalability also means that you might lose a grip on your brand, as your message is now in the hands of third-party affiliates. That said, founders have to be super vigilant about brand safety, making sure their logo isn’t showing up on sketchy websites or next to misleading ads. What’s more, the competition for top affiliates is fierce (putting it mildly). To attract the best, operators need to offer competitive deals, reliable tracking tech, timely payments, and a product that actually converts visitors into lasting players.
What this reveals about modern customer acquisition
The overwhelming success of affiliate marketing in iGaming is a microcosm of a bigger shift in how all businesses find customers today – it tells three critical things.
Trust is the new currency
Modern consumers (especially in an industry where people worry about fairness and security) are deeply suspicious of corporate ads.
They trust independent voices.
That said, a detailed slot review on a blog or a ’best new casinos’ list from a known expert carries way more weight than a fancy banner ad.
Niche content is the ultimate king
The iGaming affiliate world is proof of the insane value of hyper-specialized content.
Like, there are affiliates who focus exclusively on this or that group of players or on specific titlemakers. This allows for unbelievably efficient targeting – the deepest expertise attracts the most valuable customers.
Data is the ultimate judge
The entire affiliate model runs on data.
Tracking software provides a transparent, real-time view of performance for everyone involved. Every click, sign-up, and deposit is both tracked and attributed. It shows that customer acquisition is no longer a dark art, yet a science driven by metrics like LTV:CAC ratios.
The aforementioned metric is itself a crucial measure. Yet a comprehensive understanding of its relationship with other metrics provides even greater strategic insight. You may get further information on the actual subject here.
To sum things up: A founder’s playbook
For an iGaming founder, the takeaway is obvious – the affiliate strategy just can’t be an afterthought. Instead, it needs to be ’baked’ into the business model from the very beginning.
For best results, we suggest the following:
- Differentiate the offer – considering that you’re competing for affiliate attention, why should a top affiliate promote your new playhouse over an established giant? You need a unique angle – like, a killer welcome bonus, a standout game library, or simply a more attractive deal.
- Guard the brand – implement strict rules for affiliates and actually enforce them. Use tools to see where your brand is being mentioned. Everything‘s simple here: strong brand reputation is just the most valuable asset you may get.
- Optimize the journey – the best affiliate terms are worthless if the website can’t convert traffic. The entire player journey has to be both seamless and compelling.
