Several years back, actually back in 2001 I first got involved in promoting online Sportsbooks, and moved over to Curacao to understand the market better and realise the potential recruiting new sports gamblers online has. Back in 2001 it is safe to say the general online competition was weak and made it quite easy to make a big break in this industry. However like all affiliate marketing sectors back in the late 90’s and early turn of the new century it was very important for the affiliate to have a wide and vast array of programming and marketing skills.
Since 2001 there has been an explosion in the number of companies setting up online profiting from the online gambling market, with an increased number of affiliates wanting their share of the pie. It is safe to say there is now over 2,000 online Sportsbooks with over 100,000 affiliates promoting these gaming companies. However it is still only a select few affiliates who generate the majority of the traffic.
The 90/10 rule where ninety percent of your traffic comes from ten percent of your producing affiliates is as clear in the online sportsbook affiliate market as the other markets out there. Sportsbook affiliates profit from online sports betting by taking a cut of the revenue generated for the house from the players they recruited. These players are tracked from the day they click, through to sign-up to the very last wager they place with the sportsbook. For example if you recruit a gambler and he/she looses $1,000 in a month, you could easily earn $250 from this one gambler alone based on 25% revenue-share deal. Here is a working example of how an affiliate makes money in the sports gambling market;
Player 1, looses $1,000 ($1,000 profit for the house)
Player 2, looses $2,500 ($500 bonus subtracted resulting in $2,000 profit for the house)
Player 3, looses $1,000 ($1,000 profit for the house)
Player 4, win’s $1,000 ($1,000 loss for the house)
Player 5 has a $1,000 chargeback ($1,000 charged back from credit-card)
Commission calculations at 25%;
1,000 + (2,500-500) + 1,000 – 1,000 – 1,000 = 2,000
2,000 x 0.25 = 500
Total house win generated from all players is $2,000, so as an affiliate on 25% revenue-share commissions he/she would earn $500 from this one affiliate account.
Making the most of live lines, free bets
Most sportsbook affiliate operators offer live lines, as well special bets leading up to big events that they can place on their site. It is proven that the more relevant content and sports information the affiliate offers to his/her site visitors will results in greater conversions and better profits for them. Ideally they will target all the main sporting events and offer bespoke pages on their website around these events.
NFL Betting for the US, and Grand National for the UK
The biggest sporting events in the US calendar for players to gamble on is football (American football and in particular the NFL). From September through till Super Bowl Sunday (first week in February) results in millions a day being placed on the outcome of who will win a football game. The affiliates sees most of the traffic driven from their website to the US facing Sportsbooks around September to November time and during this time it is not uncommon to see top performing affiliates earning six figure a month in commissions.
In the UK the main event to bet on is football in the premiership league and this is from September through to May. The Grand National horse race ran at Aintree in April also sees a vast number of Brits gambling online for this one day event, and hence this event is targeted by many internet marketing entrepreneurs to profit from the day event.
Check out Sportsbook Commission for a list of sportsbook affiliate programs.