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Serious Issues Reported At Award Winning Affiliate Program

We have recently heard some rumours circulating that one of the internet’s award winning affiliate programs has been caught seriously shaving their affiliates, with some rather convenient and dubious tracking methods. As such, we set about trying to gather some more information and have been provided with some pretty damning evidence.

Of course, for legal reasons, we will not name and shame the affiliate operator at this stage, but we can confirm that we have seen evidence to prove the facts, and I’m sure a lot of webmasters and affiliates will be very surprised when they are finally revealed.

A little research on the web shows there have been suspicions cast about this operator in the past, but as most affiliates these days, when you catch an operator cheating you out of your hard earned commission and future revenues, you simply dump them as fast as you can and move on.

This time, we understand the affiliates have potentially been cheated out of multi-millions in revenues, and from the evidence we have seen, the operator has been caught and has admitted to some serious problems.

Sadly, unscrupulous operators are more than happy to take advantage of and even facilitate problems within their systems to avoid paying affiliates. Since the early days of internet gambling, some casino operators used to “knock” paying out on player winnings to sure up their bottom lines, but since that generates a wave of bad publicity, operators have moved on in their thinking.

Since the cost of advertising and marketing increased greatly, 99% of gaming operation relies on their affiliate programs to generate new customers. Competition for affiliates is fierce which has the natural effect of driving up commission rates. If affiliates can generate a very high volume of players each month, it’s not unheard of to command rev share deals around 60%.

With most operators paying software licensing and payment processing fees around the 20% mark, take the affiliates 60% and you see that the operator is left with around 20%. It’s clear to see who is receiving the largest share of the profit these days, which makes affiliates a prime target to get shaved. Operators seem to forget that the reason they turned to affiliate marketing was due to the cost of advertising, so even though they are paying out 50 – 60 %, the affiliate actually makes a much smaller amount.

In the past, we have seen just about every conceivable way for operators to cut the affiliate out of the payment chain, from cross marketing (beware of all gaming operators that have multiple brands) to the simply amazing “change of the terms and conditions” that in effect turn a lifetime revenue deal, into a deal where the operators can simply refuse to pay you if you don’t send them x amount of new players each month.

We’ll keep you posted on developments in this case, as I am sure it could turn out to be one of the biggest cases of its time, with literally thousands of affiliates being cheated.

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