In today’s very competitive affiliate marketing space, there is no shortage of options regarding what type of products you can promote as an affiliate.
While it helps to be interested in the products you are going to promote as an affiliate, other considerations will affect how successful or rather how much money you will make as an affiliate.
The types of commission structures on offer generally depend on the type of product, and the industry standard.
When it comes to online gambling or more specifically the online lottery genre for affiliate programs, they generally work on one of the following;
1. Revenue Share – This is a % commission payable on the Net Gaming figure, which is worked out from deposits, less costs to the lottery operator.
2. CPA – Cost Per Action or Acquisition – This is a set amount paid as a one-off amount when a trigger such as the first time a new player makes their first transaction.
3. Hybrid – A combination of the two above methods of payment calculation.
On some rare occasions, operators may pay a tenancy and a tenancy plus one of the commission structures mentioned above, but this is not common.
The whole idea of the lottery affiliate program is that the operator only pays on results, and the affiliate earns when they generate that result.
This is all relatively straight forward. It’s generally accepted that affiliates like to work on a CPA because they get their earnings as soon as the first deposit or trigger is activated. At the same time, operators prefer to pay affiliates as the money is spent by the player over the course of that player’s lifetime. That is one reason why a Hybrid can be a good option for both the lotto affiliate program and the affiliate because it’s a halfway between solutions.
As an affiliate, you have to consider that if a lottery affiliate program is going to pay a specific CPA that ultimately, the operator is going to expect to make a profit from that referred player over the time that the player is actively playing the lotteries. This stands to reason that if you were to work on a Revenue Share basis, you would actually make more money over time.
There are, of course, many variables to this, such as your source of traffic and the brand’s ability to retain the players, but you can take this as a general guide.
When selecting which operators to work with, you will want to know you are dealing with a reputable company. This factor alone can make up a huge part in finding a high commission affiliate program!
There is a graveyard of gambling operators’ affiliate programs that have left many affiliates high and dry after closing their affiliate program and ceasing to pay the ongoing commissions from the players that the affiliate had referred.
In most cases, if you check the affiliate program terms and conditions, you can see if any predatory terms may affect your ongoing trail commissions.
If you do find predatory terms and want to promote the operator’s brand, you may want to consider sending them your own agreement to sign. In many cases, you will find the operator is ok with working outside of their standard agreement if it means they will get new players.
Gambling is a favorite pastime of many people, and in Australia alone, it is estimated that one in three people will play the lottery at least once per year.
Given that all types of lotto draws happen many times a week, and that there is an appetite for players to want to play the lotteries, it’s not hard to work out that by getting an ongoing trail commission for these lottery players can build a great revenue stream for you as a lotto affiliate.
The other thing that can make lotto affiliate programs high paying is if there is competition. Competition means that as an affiliate, you can choose more than one online lottery affiliate program to promote and get the best commission deal for you!
Every online gambling operator is keen to generate as many new players as possible each month. The affiliate program is an essential channel for the lotto operator to generate these players.
If you work in markets with many brands, this can help you negotiate the highest commissions. Tie this in with excellent retention of the players at the brand and good lifetime player values, and you have the perfect storm to have a high paying affiliate program with online lotteries.
There are some types of lotteries in Australia that have affiliate programs that pay a revenue share, BUT only on the first transaction a player makes.
This means unless you keep sending new players each and every month, you will earn nothing as you are not going to receive any revenue share from players’ future deposits.
Becoming a high earning or super affiliate as they are called does not happen overnight.
Once you have identified the products you want to promote and have tried and tested a working formula to generate consistent results, you can then start accumulating revenue.
By promoting a reputable lotto affiliate program, you can start to build ongoing trail commissions that, over time, could see you get the status of super affiliate too!