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Thread: CPA Deals

  1. #1
    CK
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    Default CPA Deals

    ok so basic question how do you dertmine what a fair cpa deal is on both ends. I assume it would be average amount a player loses to the casino or maybe Im totally off..ha but if someone would care to explain for me that would be awesome..poker I get...casino cpa I dont
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    Default Casino CPA 101 - The Study Guide

    Hey Kaus, and everyone else who is wondering. Basically the casino/operator will look at how much their average player is worth over a lifetime. One of the most basic figures for this below. This formula does not include operating cost (affiliate managers, support, IT, gaming license, etc).

    Player Deposits - Cashouts/Bonuses/Network Fees (typically 10-20%)

    Depending on the network deal and volume of the total database some programs can always outbid others for CPA. Typically you'll see an average casino player worth $500-600 lifetime. Now, this is an average number and there are plenty of whales on each side.

    Taking this into account you'll always get a better deal based on the volume you can send! This does not make sense when you break it down to player value; however Casinos tend to value volume in this market more than they do initial profitability.

    - If you tend to send each program 1-10 players per month then you should ask for around $150CPA / $125 US friendly rooms.

    - 10 to 25 Players then I would feel safe saying you can negotiate a $200-$300CPA. However in this range I would consider a hybrid deal of $125+10% commission. You will have a few whales and you'll want their residual income!

    - For anyone sending 25+ players a month to one program then you're already on a great deal. Expect $300+ per player at this level given the mix of whales you'll send on average.

    The reason I give US friendly rooms a little break is the fact these players have less places to chose from. Taking it a step further they have a harder time making deposits as well. These guys usually stick around so trial a little with Hybrid deals if possible.


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    CK
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    Thanks Greg that's awesome
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    Thanks for the response Greg - you're awesome.

    1 question though - I thought $200 CPA was a pretty standard base for a CPA to start on?
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    In my opinion I wouldn't consider anything less than $300 per player. I assume you are asking this Cheryle because it's a casino that you suspect may not do such a great job but is harassing you to be listed on a site Anyways even if it's not a solid brand, you still have to take into account that casino player values are much higher than poker and for it to really be worth it personally that's the type of deal I would be looking for.

    As has been stated numerous times, CPA is always a losing deal for one of the parties. That being said, if you are still going to go that route with this program, make sure they are paying you a very good amount.

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    Casino revenues can be very BIG depending on the portal site and the player types that they attract. Think poker - and multiply by 10 - at least that is our experience so far!


    If you've never done a Casino deal before - then racing into a CPA deal first up is likely to end badly - as wither you or the casino are getting the short end of the deal.

    I'd recommend that you find a reliable outfit and go Rev-share to start with. Then you will have a base to judge CPA deals against.
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    If you people take 1 tip from me for the rest of your life, let it be this,

    NEVER TAKE CPA ON A CASINO.


 

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