One of the businesses that has boomed in recent years thanks to the Internet is the online affiliate marketing. Due to the very nature of this system and the way that leads to generating money, the affiliate marketeer is able to work through his laptop or PC potentially from any location in the world. While the system itself might seem simple from a business perspective, the way affiliate programs work needs unique calculations especially when the commissions paid to affiliates depend on a share of the revenue generated by not just one action of their customers, but a complex series of activities like it happens in the sports betting sector.
In a market economy, when a company wishes to promote their products, they can do this by employing a team of individuals that are professionals in advertising on different communication means e.g. the mass media. Thus there is a team to pay as well as all the advertising space acquired in the process. These are upfront costs, that not all businesses like to budget in advance for. The revolution of the online affiliate marketing system is that these 2 points fall and the mother company has just to pay a slice of its revenue after the sale is completed.
The affiliates are not paid directly for their job, but they get paid afterwards, when customers buy mother company products or services. So what’s so complicated in a sports betting affiliate program model? The difference from other affiliate programs, let’s say from the affiliate program of an online shoes store for example, is that the amount of the commission paid to the affiliate is not promptly estimable after the customer joins the sports betting site, but it is calculated at the end of the month on all the activity generated by the player during the month. Thus there will be calculations to be made according to which the amount of money to pay to the affiliate is figured out.
To make this model work properly and hence getting to a correct figure, the sport betting affiliate program has to keep track and reach to an accurate calculation of the player’s betting, both wins and losses. But how does this work in practice? Firstly, the affiliate is given a unique tracking URL through which the sports betting site can locate correctly the place from where the new player has entered. Second there is the need of monitoring all the player’s activity throughout the month and keep track of when and how much money is bet.
The system is rather complicated when it comes to explain the dynamics of payment, especially when it is compared to the system of ‘upfront payment’. But the sports betting affiliate program is simply an automated system that functions smoothly and efficiently time and time again. This model works absolutely well and this fact can be backed up by the numerous companies that enter the sector using the same proven marketing approach.
The affiliate business is something that many companies from the most different sectors can benefit from and this certainly includes the profitable sports betting industry.