If you are in the online casino affiliate business, you need to accept the fact that downswings don’t affect only the players, but also your venture. Given the fact that players are frequently losing money, affiliates assume that their own business would only go upwards, which is of course a mistake. Even though it happens far more often for the house to win, every now and then, even online casinos see their profits diminished and even lose money.
One of the recent examples was provided by William Hill, a company that runs both sports betting rings, online casino games and has even a few poker rooms. For a business of this magnitude, it all evens out because even when a division loses money, it is very likely for another one to be very lucrative. In the great scheme of things what matters is to finish above the profitability line and it is only fair to assume that the bookmaker turned online casino and poker room does just fine.
First-quarter results on the other hand were a bit worrisome and contrary to popular belief, the losses were not caused by the casino business. Sports betting proved to be Achilles’ heel for William Hill early this year, as punters proved to be particularly inspired at picking winners. What happened is that they won a lot of money over a relatively short period of time, which made it impossible for the casino generated revenue to completely offset these losses.
It goes without saying that the online casino affiliates who partner with William Hill will also experience a setback, if losses haven’t piled up already. Depending on the system chosen, players will cause irreparable damage to the affiliate, or the latter will be given a clean slate started the next month. This is why it is very important to choose your affiliate plan carefully to make sure that if the worst-case scenario becomes a reality, you won’t be crushed by the burden.
Furthermore, it is recommended to have a b-plan or an exit strategy and try to expand your affiliate business, instead of risking everything on one card. Whether you choose to diversify, by covering sports betting, casino games and poker, or work with different online partners, the result is the same. You mitigate the risks of incurring consistent losses in one area and both your profits and occasional losses will be spread across several divisions.