Betfair Revenue Share or CPA ?

[4ndy]

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Hi

Betfairs in house affiliate scheme offers a choice of revenue share or CPA.

Am I right to asume that if I go for the revenue share deal I get 25-35% of all revenues created less costs.

Therefore if I am promoting £25 Free Bet then the customer would have to stake £500 meaning at Betfairs commission rate of 5% to the punter this generates revenue of £25 which covers the £25 Free Bet cost , so to make any money I need my customer to stake at least £500 and then after this amount I will make 12.5 pence for every £10 he or she stakes (£10 X 5% = 0.50p X 25% = 12.5 pence to me.

Summary - customer needs to stake min £500 before revenue is created for me then is payable at 12.5p for every £10 staked.

In comparing rev share V CPA then to make the £30 offered on CPA with the revenue share deal then the customer must stake £2900 (within 1 year) on revenue share deal which creates rev shares of (£2900 X 5%) = £145 minus £25 Free Bet leaves £120 X 25% revenue share = £30 commission to affilaite, where as to get £30 CPA customer only needs to stake £75!.

However on the revenue share deal you would earn an extra 12.5p for every £10 staked after stakes of £2900 but this is capped for 1 year and then ends on sportsbook but not other products.

My initial thought is to go for CPA what do you think?

Hope that was all clear!

4ndy

[Valuechecker]

Hi

My understanding is the rev share for the exchange is payable on the commission someone pays... so with your example rather than £2900 staked it will need to be £2900 won - as an exchange punter only pays commission when they win.

Depends on the quality of player you pick up of course - typically someone who joins betfair not just for the free bet will be a decent punter - many exclusively use betfair and stop using other bookies in which case they will turn over a lot. If you pick up a trader then they could turn over thousands a day.

I wouldnt look at just the sportsbook earnings - the cross over earnings are probably where you could earn more.

In my view £30 is a bit cheap for a betfair account if you can introduce quality and arent just selling on free bets

[4ndy]

Hi Richard

Thanks for the info.

If the comm payable is on winnings then that makes it harder to generate revenue.

I ve traded a bit on betfair myself say £500 worth of bets on 1 race to make say a guaranteed profit of 0.3% which equates to £1.50 won @ 25% that is £0.38p commission which I suppose a weeks trading could cover £25 commission based on this example.

I think you are correct in that it depends on what type of traffic you are targeting, however if the rev share deal was for the lifetime of the player as it is with most bookmakers (i know Betfair is an exchange not a bookmaker) then I would go for rev share all the time. If you are looking betfair then take note!

I believe Betfair is a great company and once people have tried and can use Betfair they will never go back to a traditional bookmaker, lets be honest if you like betting you only need 1 account and that is with Betfair.

Thank you for your thoughts Richard.

One other thing I notice you have put some of your urls on your post.

I have always wondered wether to do this or not and what the benefits were from a SEO point of view.

I was concerned that someone typing in say betting in a serach engine would find my url which is good but with a post from a4u discussing how much money I made.

What are your thoughts and advice on this matter.


4ndy

[oliviaharis]

Earthport, the online and offline payment infrastructure company, has signed an agreement to provide its Universal Payment Network (UPN) to Betfair, the first and largest person-to-person sports betting exchange. The initial two-year agreement, with options to extend, will provide earthport with licence fees and transaction based revenue streams.
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oliviaharis

Betfair freebet. How to bet at Betfair.com.

[BettingOnline]

Hi 4ndy

I found your example very interesting

But what about match bettors?
You know that many punters do only lay bets on betfair on high odds so basically they keep winning all the time . That is a case when you do mb with other bookie with bonus offers

I am sure that would wipe any commission earned...

What do you think ?

[mobillica]

dont forget that betfair resets customers to zero after a year...for sportsbook anyway

[gregdpowell]

dont forget that betfair resets customers to zero after a year...for sportsbook anyway

I am wondering if this re-set at zero at the beginning for all Sportsbooks,including the US facing ones? If so it's a good thing for us as the Superbowl and March Madness are right around the corner.

[4ndy]

dont forget that betfair resets customers to zero after a year...for sportsbook anyway

Yes that's right.

I think its about time Betfair started paying rev share on Sportsbook for the life of the customer.

Conversions are not as good now that the free bet is available from the main site where as before a bonus code or exclusive landing page was offered and not available from the main site.