OCT/NOV 2009

DIRECT MARKETINGEMAIL VS DIRECT MAIL

RULES OF WHITE HAT LINK BUILDING

AFFILIATE DECISION MAKINGTHE OPERATOR’S INFLUENCE

INTERVIEW: PATRICK MCKAY, FOUNDER, GOBETYA

INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING

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MIC306_DNA Advert_210x297_AW 9/9/09 14:51 Page 1

So, while a few of you commented that I must be getting older, after seeing me out of commission for the four days following the Budapest Affi liate Conference and EIG events, I have to remind you that back in the day, we didn’t host major back to back events. While I used to have to go hard for three days of conferencing, meetings and events with only two and a half hours sleep a night, I’m now required to go for seven days at pace. But now that we’ve cleared that up, you can be sure that I’m strategizing, training and preparing for the myriad of events, socials and parties that accompany the London Affi liate Conference and ICE.

But for now, we are all bedding down for winter and getting serious work underway. To make the winter push a little

easier, we have analysed some affi liate and webmaster tools that will shave hours off your week, freeing your time for driving players and making money. We’ve examined the sportsbetting affi liate market, looked at forex, taken a practical view on link building and have gotten an insight into why Bodog thinks it’s a good time to launch a poker network.

Hopefully, I will see some of you at our regional Affi liate show in Madrid. But if not, I will be ready for you at the London Affi liate Conference and Awards in January. Enjoy this issue of iGB Affi liate, and get back into webmaster mode!

Michael Caselli, Editor in Chief

FREE SUBSCRIPTION email: alex.pratt@igamingbusiness.com Print:

Magazine Print Company Published by: iGaming Business,

33-41 Dallington Street, London EC1V 0BB

T: +44 (0)20 7954 3515 F: +44 (0)20 7954 3511

www.igamingbusiness.com © iGaming 2009. All rights reserved.

No part of this publication may be reproduced or transmitted in any

form or by any means, or stored in any retrieval system of any nature

without prior written permission, except for permitted fair dealing

under the Copyright Designs and Patents Act 1988. Application for

permission for use of copyright material including permission to

reproduce extracts in other published works shall be made to the

publishers. Full acknowledgement of author, publisher and source

must be given. iGaming Business Affi liate Magazine is published by

iGaming Business Limited of 33-41Dallington Street, London EC1V

0BB, UK. The views expressed by contributors and correspondents

are their own. Editorial opinions expressed in this magazine are not

necessarily those of the Publisher.

The Publisher does not accept responsibility for advertising content.

Cover image: istockphoto.com ISSN: 2041-6954

Editor in Chief: Michael Casellimichaelc@igamingbusiness.com Editor: James McKeownjames@igamingbusiness.com Publisher: Alex Prattalex.pratt@igamingbusiness.com Production Manager: Craig Youngcraig@igamingbusiness.com Production Assistant: Laura Headlaura@igamingbusiness.comSales Executive: Ian Larcombeian@igamingbusiness.comDesigner: Magdalena Wielopolska

CONTENTS04 Events Calendar

06 Webmaster News

10 White Hat Link Building

12 Conversion Rate Psychology

15 Tools of the Trade

18 Direct Marketing: Email Vs Direct Mail

21 Interview: Lady Hold’em

22 Interview: Patrick McKay, Founder of Gobetya

24 Reaching the Female Player Base

25 Sportsbetting Supplement

34 T&Cs: The Curse of Retroactive Changes

36 Forex and the Poker Player

39 Getting your Niche

40 Open Source Warfare: Google Takes on Microsoft

42 Weeding out Bad Affi liates

44 Affi liate Decision Making: The Operator’s Infl uence

46 Poker Money Seizures in the US

48 Interview: Patrik Selin, Bodog Network

50 Conference Season – What Have we Learnt?

52 Consolidate, Optimize, Maximize

54 Webinar Best Practices

4

AFFILIATE EVENTS CALENDAR

iGB Affiliate OCTOBER/NOVEMBER 2009

A4UEXPO LONDON 2009 EXCEL, LONDON, ENGLAND 13-14 OCTOBER, 2009

Summary: a4uexpo London is Europe’s Largest Affiliate Marketing Conference and Exhibition and will be returning to ExCeL London for the third year in October 2009. The two-day conference will boast over thirty sessions including strategies on SEO, Paid Search, Social Media, Affiliate Management, Start-up Strategy and Conversion Optimisation.

There will also be three parties to give affiliates an opportunity to fine tune their networking skills with some of the best in the business. This year’s event is expected to sell out, so advanced booking is suggested.

www.a4uexpo.com/london

iGB ESPANA, MADRID, SPAIN 30-31 OCTOBER, 2009

Summary: iGB Espana debuts in Madrid this October as the first Spanish-specific event. Although the event will showcase a compact exhibition, it will concentrate on content and networking, offering a diverse mix of presentations and lively panel discussions all of which will be aimed towards the Spanish markets. In addition, the majority of these sessions will be in Spanish, with live English translation.

www.iGBEspana.com

LONDON AFFILIATE CONFERENCE LONDON, ENGLAND 28 – 31 JANUARY, 2010

Summary: The London Affiliate Conference (LAC) is the flagship event on iGaming Business’ affiliate conference circuit. As ever, the 2010 event directly follows the IGE exhibition and is expected to attract over 2,000 affiliates, operators and vendors. The third annual iGaming Affiliate Awards (previously known as the CAP Awards) will once again mark the opening of this event and based on last years sell out event this is definitely not one to miss with a bigger venue that will take over 500 guests.

www.londonaffiliateconference.com

Due to their popularity and wealth of information, analysis and discussion, conferences have become an integral part of the affiliate industry and a key communications bridge between affiliates and affiliate managers. Whether used for networking, education or just an excuse to meet up with friends, the affiliate conferences listed below provide all the tools you need to improve your business.

WWW.iGBAFFILIATEAWARDS.COM

Every year over 500 people from the iGaming affiliate community come together, dressed to impress and be wined and dined to honour the ongoing success within the industry by announcing the best and brightest stars at an extravagant black tie event. Previously named the CAP Awards, we welcome the ‘iGaming Affiliate Awards’ which is set to be an evening of celebration, glamour and entertainment.

The iGB Affiliate Awards give the affiliate marketing community the power to choose the winner in each of the 23 categories. If you would like to nominate yourself, a colleague or a company visit: www.iGBAffiliateAwards.com

Best AffiliAte ProgrAm • Best igAming AffiliAte network • Best igAming softwAre • Best PAyment system for AffiliAtes • Best AffiliAte mAnAger • Best AffiliAte • CAsino • Poker • Bingo • sPortsBook • skill gAming • overAll

the 3rd AnnuAl igB AffiliAte AwArdsthursdAy 28th JAnuAry 2010 the grAnge st PAul’s hotel, london

THE MUCH ANTICIPATED online migration of the land based gaming industry’s biggest brands is officially under way following news that Harrah’s has penned a deal with 888’s independent B2B division, Dragonfish, in rolling out the UK launch of its World Series of Poker (WSOP) and Caesars Casino brands.

The long-term agreement with Harrah’s Interactive Entertainment, Inc. (“HIE”), a subsidiary of Harrah’s Entertainment, Inc. (“Harrah’s”), will see Dragonfish provide its Total Gaming Services, including poker and casino software, ePayments, CRM, Customer Support and VIP services, in creating a platform to grow the WSOP and Caesars

Casino brands online.888 CEO, Gigi Levy, explained, “This

is a groundbreaking deal for 888 and demonstrates our ability to provide real value to globally renowned, land-based casinos and their leading brands.

“We have the structure in place to realise our B2B division’s full potential over the next 18 months and beyond and today’s announcement of our partnership with an industry giant is further vindication of this strategy.”

Mitch Garber, CEO of Harrah’s Interactive Entertainment and former CEO of PartyGaming, added, “As we develop and roll out our interactive strategy, we have chosen to work with

888, primarily for their world-class technology, scalability and a strong commitment to compliance and responsible gaming.”

With reports of the US land based casino market experiencing bleak financial times, the move by Harrah’s, though heavily predicted, may prove to be the catalyst in forcing more offline brands into the more stable online environment.

FROM ONE MYTHICAL fish hybrid to

another, Devilfish Gaming has announced the

launch of a new B2B consultancy operation

which will be dedicated to the online

gaming industry.

Devilfish Services has enlisted a team

of gaming executives with several years

of online and offline gaming experience

in both the B2B supplier and B2C

operator segments. The team arrives with

expertise in building businesses from scratch,

from the initial funding requirements through

business planning, marketing strategy,

marketing planning, staff recruitment and

supplier selection.

The full consultancy services cover

the following:

●● Business and Financial Planning ●● Business Analysis and Requirements Specification●● Online Marketing and Planning●● Search Engine Marketing●● Design of Affiliate Programs●● Market Research●● Market and Competitor Analysis●● Customer Promotions and Bonus Programs●● Website Functional Specification and Design●● Product and Channel Management●● Regulatory and Certification Review●● Supplier Product Reviews and

Selection

Paul Barnes, CEO of Devilfish Gaming Plc,

said, “We are unique because we both

operate an online gaming business and share

that know-how with selected businesses in

non-competing markets using high-calibre,

in-house management consultants. The

market environment is changing and we

are diversifying to benefit from the new

opportunities in B2B alliances.”

DEVILFISH GAMING PLC LAUNCHES B2B ARM

HARRAH’S BEGINS ONLINE MIGRATION

iGB Affiliate OCTOBER/NOVEMBER 2009

WEBMASTER NEWS

6

NORDIC GAMING GROUP LAUNCHES AFFILIATE PROGRAMThe Nordic Gaming Group Limited has announced the launch of an aggressive new affiliate program aimed at seizing a large portion of the regional market.

The program will serve the company’s three flagship brands in NordicBet.com, TrioBet.com and ToBet.com through the launch of affiliate sites at NordicBetPartners.com, TrioBetPartners.com and ToBetPartners.com.

“This is a really hot program and the affiliates we’ve been in touch with so far have been signing up like you wouldn’t believe,” said Shaun O’Neill, Affiliate Manager for Nordic Gaming Group.

“To be honest, it’s an easy sell since the affiliates have already been turned on by our top-notch products and services. They especially like the fact that we’ve got such a wide sportsbook offer and can work well in both the global and local markets.”

The Nordic Gaming Group also went on to heap praise on its affiliate manager declaring that after four years in the affiliate sector, O’Neill is considered one of the program’s largest assets after developing extensive contacts and becoming a recognised industry heavyweight.

“We’re lucky to have Shaun on board,” said Per Hellberg, Chief Executive Officer for Nordic Gaming Group.

“He knows this aspect of the industry inside and out and understands exactly what the affiliates want. This program will be a nice complement to our already successful business and we are expecting to get a lot out of it.”

LONDON SET FOR RECORD JANUARY TURNOUTThe converged worlds of the offline and online gaming industries are set to descend on London like never before in January, as Clarion Gaming, the organiser of London’s annual International Gaming Expo (IGE) and Amusement Trades Exhibition International (ATEI), reveals that the shows are already at 80 percent capacity with a total of 240 exhibitors from 40 nations already signed up. (Continued p.8)

AUSTRIAN SPORTSBOOK bwin is reportedly closing in on the acquisition of Italy’s forerunning online gaming operation, Gioco Digitale in an attempt to position itself in the box seat upon the anticipated deregulation of the Italian online gambling market.

Bwin, the world’s largest publically traded online gaming company, said it was in the final stages of negotiations to purchase 100 percent of Gioco Digitale from current shareholders, having previously stated its ambitions to expand its Italian operations.

The acquisition is earmarked to cost bwin the sum of 50 million and 2.3 million bwin shares, with an initial 25 million being paid upon the completion of the transaction. Further, separate

installments of 20 million and 5 million will be paid upon fulfillment of certain terms of the agreement.

Shares in bwin rose 0.7 percent to 27.42 in the first minutes of trading

following the announcement. The deal is forecasted for completion by early October (at the time of writing).

The deal continues the recent spate of M&A activity in the industry, with such deals being touted as catalysts for the expected move towards the consolidation of the sector as the economy emerges from one of its darkest hours.

BWIN READIES ITSELF FOR ITALIAN JOB

IF EVER THERE was a time when the US would welcome a previously untapped and undoubtedly significant source of tax revenue, then surely now is that time.

Indeed, the potential revenue from the regulation of the Internet gaming industry has already been earmarked for several causes in need of currently unavailable financial backing.

The latest proposal to land of the desk of the Financial Services Committee, chaired by Congressman Barney Frank, suggests that Internet gambling revenue could be used to offset the costs of health care reform. The amendment offered by Senator Ron Wyden (D-OR) would dedicate Internet gambling tax revenue generated through the implementation

of the currently pending Internet Regulation, Consumer Protection and Enforcement Act (H.R. 2267) to increase low-income subsidies provided through the America’s Healthy Future Act of 2009.

Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, commented, “We applaud Senator Wyden’s proposal to collect and put to good use tens of billions in Internet gambling revenue that would otherwise be lost in the underground marketplace.”

A report by PricewaterhouseCoopers revealed that the US could collect up to $62.7 billion in Internet Gaming taxes over the next decade.

ONLINE GAMING TO BOLSTER US HEALTH CARE REFORM?

THE INDUSTRY’S FOREMOST 3D online poker room, PKR.com, has rather surprisingly announced its entry into the sportsbetting market in a move that will see the company partner with exchange and sportsbook software provider, Global Betting Exchange (GBE).

GBE will provide PKR with its iBroker sportsbook software, allowing the online poker room to automate all aspects of its sportsbook management from creation and pricing to settlement of events, while providing automated risk

management and dynamic hedging. Brian O’Sullivan, CEO of GBE, said in

a statement: “Global Betting Exchange has leveraged its experience as the developer and operator of one of the Industry’s leading betting exchanges to develop a unique sportsbook platform. The GBE iBroker is a low cost sportsbook platform with sophisticated risk management technology. The selection of iBroker by a company with PKR.com’s reputation for innovation and excellence is a huge endorsement for the iBroker product.”

PKR TURNS HAND TO SPORTSBETTING

iGB Affiliate OCTOBER/NOVEMBER 2009 7

(Continued from p.7) The shows will take place from January 26 to 28 at the Earls Court Exhibition Centre where for consecutive years the annual expo has continued to grow in the numbers of both delegates and exhibitors attending.

“To be 80 percent full at this stage of the marketing cycle and set against the broader trading backdrop is extremely encouraging,” said Julian Graves, Managing Director for Clarion Gaming.

“The amusements offering comprises a buoyant 51 organisations that have an interest in the sector with the dedicated ATEI component comprising some 3,700 square metres of stand space.”

January represents one of the busiest periods for the industry as operators, delegates and affiliates from all over the globe descend on the English capital for a week of conferences and exhibitions, which includes the London Affiliate Conference.

BETFAIR CONSIDERING IPOAccording to reports, Betfair could be about to launch a $2.5 billion initial public offering in order to help consolidate its position in the event of any positive movement in the US market.

Reports attributed to financial information website MarketWatch.com, say that Betfair’s founders, Bertie Black and Ed Wray, are scheduled to meet with banking advisers over the coming weeks to discuss what would be the UK’s first major listing since the onset of the economic crisis.

The Sunday Telegraph newspaper reported that any floatation would provide Betfair with capital that would enable it to lead a “likely consolidation in the gambling sector”. It added that a lifting of the Unlawful Internet Gambling Enforcement Act (UIGEA) prohibition could come as soon as next year, which would spark deals in the industry.

However, current M&A activity in the industry would suggest that such consolidation is already starting to gain momentum.

ONLINE BANKING SERVICE, Ivobank, has fi nally announced it is to be shut down after its bankers decided it could no longer fund the business any further.

Right from the outset, Ivobank reportedly ran into problems on various levels despite a vocal strategy to establish

itself as the dominant player in online banking for the gaming industry.

Ivobank released a statement to declare that it was no longer accepting new business, although more information would be made available for stakeholders in near future.

IVOBANK CLOSES DOORS

IN REPORTING NEGATIVE fi nancial results for the fi rst six months of the year, gaming company Codere has pinpointed the harsh economic climate in Spain together with the affects of the Swine Flu outbreak in Mexico as principle triggers for the drop in revenue.

The Madrid-based company revealed a 2.2 percent year-on-year decrease in revenues to 492.6 million. It also stated that earnings before interest, tax, depreciation and amortisation fell 12.9 percent year-on-year to 105 million while its net income decreased to a loss of 5.7 million from 700,000 last year.

The offi cial line from the company blamed the results on “the slowdown of consumption provoked by the economic crisis in Spain and the impact of the swine fl u virus in Mexico alongside the appreciation of the Euro against local currencies”.

Earnings in Mexico fell 13 percent year-on-year to 96.3 million with Codere assigning these fi gures to the

closure by offi cials of 71 of its 105 sites in the region for various periods due to fears over Swine Flu.

IT’S THAT TIME of year again. iGaming Business is busy preparing to host the most prestigious awards ceremony on the affi liate calendar, the iGB Affi liate Awards, and nominations are now open for the 2010 ceremony in London.

The twenty-three awards across six categories have been created to honour the brightest lights in the gaming affi liate community and have become a highly coveted seal of approval in the iGaming industry.

The impartial voting process, for which the awards are famed, are now underway with nominations being accepted at www.iGBAffi liateAwards.com until November 1st, after which all nominees will then be put through a rigorous online voting system. The fi ve with the most votes for each award will be put through to the next phase;

the judging panel. The criteria for the fi nal fi ve is each specifi c to their category and will be analysed by a panel of distinguished and seasoned industry professionals, whose expertise span the entire iGaming industry, in order to select the fi nal winner.

“We are proud once again to bring you the iGB Affi liate Awards to both launch the London Affi liate Conference (LAC 29th-31st Jan) and celebrate the ongoing success within the iGaming industry”, announced Kiera Goymour, Event Manager for iGaming Business. “We plan on creating another glamorous and exciting, themed night of entertainment and have revised the categories to ensure we take in the whole spectrum of the iGaming industry.”

AFFILIATE ‘OSCARS’ OPEN FOR NOMINATIONS

FINANCIAL RESULTS TAKES SWINE FLU HIT

iGB Affi liate OCTOBER/NOVEMBER 2009

WEBMASTER NEWS

8

http://www.affiliateclub.com

IN THE WORLD of SEO and Link

Building a lot of people still preach

incorrect theories about the adequate

way of building links. Improving the

traffic to your website is important for

every business and link building is the

way to achieve that organically. No one

gets around link building!

Link building is a technique widely

used by SEOs that took off when

Google introduced its link analysis

algorithm PageRank in 1999. That was

the time when links were not only built

for direct traffic from human visitors

but also for search engine robots.

Since then, both the link building

practices as well as the ways in which

search engines operate have changed

inconceivably and keep on changing

continuously.

But the web is wide, and so in

addition to the outdated stuff, there

is also a lot of rather up to date

information on link building available.

The problem with outdated information

mainly exists because of old 2004

posts in forums and sometimes blogs

– and Google loves to rank those old

articles higher than new information.

This outdated information is falsely

applied in many ways.

LINK BUILDING – HEY 2004 WAS FIVE YEARS AGO!A lot of self-proclaimed experts still

do link building for their clients as

they did in 2004. But they forget that

it’s not only time that goes by and

changes; search engines change too,

continually. And that is why you cannot

point a PR8 site-wide link at a three-

day-old data feed domain and expect

it to have five billion pages indexed

within a couple of days and earn a lot

of money over Christmas time. Though

it was fun back in 2003/04, it simply

doesn’t work that way anymore. The

only two things that still matter in link

building are relevancy and trust!

WHAT STOPPED WORKING IN LINK BUILDINGPrecise Anchor Texts – preciously,

SEOs were used to optimizing by using

the same anchor texts for their links

over and over again. Since anchor text

filters have been in full effect since

2006, varying your anchor text is

essential today.

You should really avoid having the

same anchor text over and over again

– it’s not natural! Our new public tool,

the Backlink and Anchor Text Tool

helps you in finding all your backlinks

and provides you a breakdown of all

anchor texts being used. The results

should look like a natural distribution

of various phrases related to your main

keywords.

Google PageRank – the famous green

bar is no longer a metric to gauge the

strength of a page. Google returns

random PageRank data if and when

it feels like it – just because it is fun

and it likes to fool us SEOs. This fact

was even confirmed by Matt Cutts of

Google.¹

Alexa Rank – this metric is skewed

towards online marketing people and

is, therefore, not an adequate traffic

metric to be used.

Google Backlink Data – the number

of backlinks reported by Google

is only a fraction of what is really

there. Furthermore, random samples

iGB Affi liate OCTOBER/NOVEMBER 2009

TRAFFIC

10

An Introduction to my link building world…

THE SEVEN GOLDEN RULES OF WHITE HAT LINK BUILDING

iGB Affi liate OCTOBER/NOVEMBER 2009 11

‘spammiest’ of all links you have. The metric was crippled in 2004 and shouldn’t be used for making decisions either.

Google Cache Date – this metric was also crippled as it is heavily used by SEOs. Juicy Pages are often returned as having no cache set. Therefore, you can forget about the cache date too.

THE 7 GOLDEN RULES OF WHITE HAT LINK BUILDING1. Relevant Pages and in-content LinksLink building today is all about relevant pages and in-content links. You need to have the links inside the content of a relevant page; a page talking about your business, products or topics relevant to you. You want links neatly embedded inside a page, not navigational text links.

The practice of using presell pages, a term introduced by Aaron Wall, enables you to get such high-relevance, in-content links easily. You write up a page that talks about your industry, company or products and have links to your site in there. The content on the page looks just like a normal article written by a newspaper or a fan of yours. This method used in link building replaced irrelevant footer links that were crippled in 2005.

2. Domain TrustDomain trust concerns the trust of your domain and the trust of the domain linking to you. What this means is that you need links from trusted sites in order to become trusted. Both the trust of linking from and to a domain is important as well as the domain age, the brand and co-citations. All of these factors make up the trust rank of your website.

What trust rank means is that link quality is relative: if your domain is trusted it will respond differently and more quickly to links and there will be more LSI in effect. What this signifi es is that you should not build trust only on links. It is not just about link building – it is more than that!

3. Natural Anchor TextYou might ask yourself what really is natural when it comes to Anchor Texts?

A natural link looks like it was built by a user, not an SEO. Normal users don’t care about anchor texts, and so, if all your links look like they were built by an SEO,

you are in trouble. What this means is that you don’t only have high value keywords in your links, but also some links saying “cool site”, “brand name x”, “click here” or even a longer phrase. Don’t over-optimize.

If you create a breakdown of all anchor texts going to a page or domain using our LinkResearchTools you will instantly understand what I mean. A natural distribution is your goal – not the maximization of equal anchor texts which happen to be your “money keyword”.

4. NoFollowIf you build links, do you build NoFollow links on relevant pages as well? Of course you do, because you don’t look at PageRank. If you apply the NoFollow tag PageRank is not passed on – but it does not avoid passing relevancy and trust. This is why NoFollow tags from very highly trusted sites still have an effect on your rankings.

In addition, normal users don’t care about NoFollow – if you ask the everyday guy what a NoFollow is he will have no clue and won’t care, because he doesn’t have to. All your links should look like they were created by normal users, which means you should also include NoFollow links in your backlink profi le.

5. Juicy PagesWhen a page is juicy this means that the page ranks and that it passes value to you if you place a link on it. Therefore, a webpage that does rank for a phrase or keyword important to you is a page that you want to have a link on regardless of PageRank, cache date and other ‘SEO type’ metrics. Why? Well, if Google thinks the page is important (for the particular search query) so should you.

We have developed our new Juice Tool based on technology we’ve been using for the past three years. This Juice Tool helps you analyze the sub-pages of your domain and identify if they are Juicy along with over 30 other different key SEO indicators. This tool is also perfect to verify deliverables of your link builders or the links acquired through third parties.

6. No-Spam!You don’t want to have links on duplicate content pages like article directories and article sites – at least for Google (Yahoo!/Bing are a different story). You

don’t want to add links into pages that are years old without changing their content. Don’t try to get a link on a site if the neighborhood consists of 48 very obvious link buyers that have placed their links for different topics even if it is a PR4, PR6 or even PR10! Don’t even think about it! It is not a content page talking about your product, business or industry. The page is only plastered with links because of a little green bar – you are smarter than that, you don’t want a link there!

7. Don’t buy links for PageRankI guess you got the message already, but let me repeat it again: you don’t care about PR, your users don’t care about PR and Google merely uses it to signal that a site has been banned. PR is not important. I’m referring to the visible Toolbar PageRank of course, not some hidden parameters inside the Google algorithm. The webmaster guidelines of Google explicitly state that you shouldn’t buy links for PageRank and in this matter, you should really trust them.

I hope this gave you an insight in the way we at CEMPER.COM think about link building and look at the value of links.

¹ http://www.marketingfan.com/matt-cutts-confi rms-we-return-ed-random-pagerank-data

CHRISTOPH C. CEMPER has been building links and affi liate sites since 2003, the time he founded his very own Link Building Company and worked his way up to become a well-respected guru in the SEO industry, especially when it comes to getting real juicy links on trusted domains.Before starting his own business, CEMPER.COM, in the online marketing industry, Christoph was building large scale transaction platforms for online betting and other e-commerce ventures for 15 years as a developer and project manager.With his team Christoph just launched a new powerful toolkit at LinkResearchTools.com a set of tools that the CEMPER.COM team has developed and been using for link building for two years already. Now in late 2009 this toolkit was fi nally made available to the public but still has limited membership slots to start with to cope with the high demand by fellow SEOs.

ANYONE WITH A WEBSITE that

expects to make any money from it

can understand the importance in

turning casual, everyday visitors into

people willing to part with money

for whatever your site provides. Be

it merchandise, services, handmade

crockery or something more on the

gambling/gaming side of things, there

is ‘something’ that is needed in order to

push the window-shopper into a state of

mind where he/she has the active desire

to partake of what your site is offering.

This is known as conversion rate.

Metaphors and similes aside, a

successful gaming website will have

a high conversion rate, meaning that

non-paying/playing visitors to the site

will convert to Real Money Players

(or Payers) that spend money on said

site at a relatively high ratio when

compared to other, less successful

websites. Everyone seeks a high

conversion rate but many will rarely

achieve the lofty heights of conversion

rate success mainly due to the fact

that people just don’t ‘get it’. So what

is there to get? What’s the mystical

essence that one must distil from the

seemingly arcane practices employed

by the successful? The answer itself

is a simple one, however, the meaning

and understanding behind it is complex

and getting it horribly wrong is a facile

task indeed.

The answer: psychology. A good

example of this were the problems faced

by Debenhams’ online store which was

losing hundreds of millions of pounds

(GBP) until Google stepped in and

helped improve its conversion rate.

Conversion rate psychology involves

getting many smaller things right, all

at the same time and then maintaining

a precarious balance or equilibrium

between these things. Too much of

something may yield the same negative

results as too little of the same thing,

which is why someone seeking to

accrue a good conversion rate ratio has

to be especially careful. Essentially,

it’s all about being able to effectively

channel visitors into the sales funnel,

simultaneously adding value to your

site and sufficiently holding the interest

of any potential customers/players so

that they keep coming back. A few ways

in which this can be achieved include

website design, site/room atmosphere

and interaction with other customers/

players as well as with website/company

staff. Ideally, a combination of a number

of these factors employed in the right

ways will contribute to a positive

conversion rate.

WEBSITE LAYOUT When people land on a website, the first

thing they notice is the layout. Anyone

can see the importance of a good, clean,

orderly layout in order to appeal to a

visitor – that’s pretty much Web Design

101. However, an important underlying

psychological message or response

that you want to try and elicit is that

your website can be trusted, and this is

achieved via trust signs. Trust signs can

come in many shapes and forms such

as:

●● A telephone number responded to by actual humans.●● A physical address based in the real world as opposed to simply an email address or minimal methods of contact.●● Decent T&Cs and/or privacy policies.

Add to this other trusted logos that’ll

reassure the visitor, such as credit card

logos, VeriSign, PayPal – any established

brand that people will be used to

seeing around and will recognise. This

inches your site/brand further into

their subconscious, making them more

prepared to trust and return.

TESTING TIMES A more technical way to advance your

‘psychological warfare’ in the search for

conversion is to employ various testing

methods, such as A/B Split Testing and

Multivariate Testing.

A simple way to explain A/B testing is

to say, for example, that you have two

titles/headlines/designs that you want

to experiment with but have no idea

how to proceed with them. You set up

the site so that half of your visitors see

example A whilst the other half would

see example B, letting things progress

naturally. After a time, you would

then examine which example had the

highest rate of conversion and progress

accordingly.

Multivariate testing is similar to A/B

split testing, but instead of testing one

element that has changed (A or B) you’ll

be simultaneously testing a multitude

of different elements, always trying to

discover which tweaks and changes lead

to the better conversion rate results.

As you may have already gathered,

this specific branch of psychology –

much like the whole of psychology

itself – is vast. Too vast to be completely

covered here, as this is only intended to

be a mere pointer or starter guide to the

realm of conversion rate psychology. To

fully master and be in control of what it

takes to become a successful conversion

rate expert, takes practice. A cliché it

may be, but the old adage of ‘try and

try again’ certainly rings true when it

comes to conversion rate. Depending

on the psychological angle you want

to undertake, as well as what area of

conversion (customers/subscribers/

gamblers/players) you want to tackle,

you will need to experiment. Try out

various ideas with the aforementioned

tests, make up tests of your own (with

psychology, sometimes you never

know until you try), do research and

eventually, become your own conversion

rate expert.

CHRISTOPHER ANGUS is a respected and renowned Internet marketer and search engine optimiser, having worked for and with some of the biggest names in gambling and fi nance. He can be reached either via his company’s website at www.seocompanyuk.com or his personal email: chris@seocompanyuk.com.

THE PSYCHOLOGY BEHIND TURNING VISITORS INTO REAL MONEY PLAYERS

TRAFFIC

iGB Affi liate OCTOBER/NOVEMBER 200912

http://www.buzzluck.com

http://www.egamingonline.com

WEBMASTER WORLD

iGB Affi liate OCTOBER/NOVEMBER 2009 15

TOOLS OF THE TRADE

SECURITYI don’t need to explain too much on why

security is important but if you ever had a

computer virus or have heard of affi liate

accounts getting hacked then you might

want to read this. Let’s start with keeping

track of all your usernames, accounts

and passwords. If you are using the same

password for everything you do from

banking, emails, affi liate accounts and

forum accounts you need to stop doing

this immediately. Imagine if a forum gets

hacked and your username and password

get compromised, perhaps you might have

the same username and password at all

of your affi liate accounts and next month

your payments are $0 because someone

‘updated’ them for you. What if someone

accessed your domain host and transferred

your domain to themselves. For people

who make a good living from this business

you cannot compromise this any longer.

Thankfully, there are some low cost tools

available for Mac and Windows users.

KeepassX (www.keepassx.org)

– Mac Users – FREE

1Password (www.1password.com)

– Mac Users – $40/user

Roboform (www.roboform.com)

– Windows Users – $30/user

The fi rst program I’ll mention, and is one

that I personally use, is KeepassX (www.

keepassx.org) for Mac users. With this

program I can store all my usernames and

create unique random passwords for all

accounts. I can make all passwords with

letters, number and special characters

so a password that I just generated right

now would read like this: 1xJGVy1v. An

alternative browser based program exists

for Mac and Windows users and they are

1Password and Roboform respectively. They

will both store your passwords and will

automatically fi ll out forms for you while

generating unique random passwords.

True Crypt (www.truecrypt.org)

– Mac/Win/Linux – FREE

True Crypt is a beautiful program

that will encrypt any hard drive that you

want. You can have your entire computer

encrypted so that is virtually impossible

to crack. If someone were to take your

hard drive and to examine its contents,

they wouldn’t be able to do anything with

it as it would appear as random data. You

can create a folder as large as you want,

store your sacred, important and valuable

fi les and encrypt them all. The only way

to decipher them is with your True Crypt

program and your password. When you

load your computer you can enter a

password to get it to work. If you are the

paranoid type and feel you may encounter

a situation where someone may force you

to enter your password to get into your

computer, well there is a solution. Create

an extra folder, store some unimportant

fi les and create another password and drive

for it. Whenever you enter your incorrect

password, upon launch, the computer will

show the dummy computer without ever

exposing what is really in your computer.

Just don’t make the mistake of forgetting

your password because only you will be

able to decrypt your computer. If your

computer gets lost or stolen you don’t want

confi dential fi les being in the wrong hands,

True Crypt should be used by all affi liates

and gaming operators.

MESSENGER ENCRYPTIONParanoid that someone might be spying on

your messenger or skype conversations?

Just get some of the many plugins that

are now appearing for all the various chat

programs including MSN messenger, Skype

and more. If you need help getting your

computer’s setup to encrypt your messages

just ask your tech guys, a tech friend or

email me. More information for one website

that covers many messenger programs is

http://www.secway.fr/us/products/

simppro/

PRODUCTIVITYClickTale (www.rockbet.com/clicktale) –

Browser – $100 and up

After the seminar, I was asked what

is the single most useful tool you would

recommend and without hesitation, I said

ClickTale. It isn’t easy getting inside the

head of your customers but ClickTale will

give you visual feedback on your websites

to improve your conversions. To use

ClickTale you just need to install a few lines

of javascript onto your website and the

program will record the mouse movements

At Budapest Affi liate Conference I gave a seminar on tools for affi liates and affi liate managers. I would like to thank all the affi liates, managers and friends that contributed to the content of this seminar who truly deserve more credit than I do.

iGB Affi liate OCTOBER/NOVEMBER 2009

WEBMASTER WORLD

16

of most of your visitors. You can replay

videos of your players clicking on links

or hovering over a link before they click

on something else. All online marketers

should use this tool to get feedback on

your websites; knowing where they click is

one thing but watching them not click on

certain links or ignoring a section of your

site is worth knowing.

VMWare (www.vmware.com) – Mac/Win/

Linux – $100 and up

VMWare is a program available for all

operating systems and gives you a great

testing platform. If you are a Mac user and

you need to use or test some Windows

programs, just install WinXP or Vista on a

virtual machine and run your programs.

You can also use these virtual machine

operating systems to test out programs

especially if you feel there may be malware,

spyware or viruses. It is a safe way to test

and download fi les without compromising

your true operating system.

ALL IN ONE MESSENGER PROGRAMSIf you need to use MSN Messenger, Yahoo

Messenger, Skype, GTalk, AIM, Jabber and

ICQ (yes people still use ICQ) just register

your logins into one program and keep all

contacts in one place.

Adium (www.adium.im) – Mac – FREE

Trillian (www.trillian.cc) – Win – FREE

Pidgin (www.pidgin.im) – Win – FREE

TRAINING AND SUPPORTMikogo (www.mikogo.com)

– Mac/Win – FREE

Mikogo will allow you to show your whole

computer screen and invite many users to

view it. Many professional poker coaches

will use Mikogo in conjunction with Skype

to teach and watch their students in action

playing online poker. If you are training a

new employee on how to use your backend

or to teach them how to use a program,

Mikogo is a great tool for this.

Camtasia (www.techsmith.com)

– Mac/Win – $100 and up

Screen Toaster (www.screentoaster.com)

– Mac/Win/Linux – FREE

These programs are great for recording

videos of your desktop or a specifi ed

section of your computer. This tool is also

used by professional poker coaches to

record themselves playing poker and doing

voice over recording to explain what their

thought process is while playing. This tool

would be great for affi liate managers who

want to show how to use their affi liate

backend and even better for affi liates if you

want to make videos of yourself playing

casinos. If you want to make a one minute

clip of how to deposit at a poker room just

get setup, record and make your deposit

with voice over to produce tutorials. The

possible uses are endless.

SEARCH ENGINE OPTIMZIATION (SEO) AND SPYINGSEO Quake (www.seoquake.com)

– Mac/Win Firefox plugin – FREE

SEO Book & Bar (www.seobook.com) Mac/

Win Firefox plugin – FREE

Both of these Firefox plugins work in

a similar fashion but I have heard that

the SEO Book toolbar is better than SEO

Quake, so the choice is yours. Both of these

toolbars will allow you to visit a website and

the toolbars will show you data about that

site such as: Alexa Rank, Google PageRank,

Total links on Yahoo/Bing/Google, whois,

archive.org to show the history of the site,

compete traffi c and more. From these tools

I can determine how much traffi c a website

has and do more research on its marketing

campaigns to fi nd out what other websites

are linking to it. As an affi liate manager,

I fi nd this tool important for recognizing

affi liates who have a lot of traffi c.

SEM Rush (www.semrush.com)

– FREE to start

If you want to look up a website and see

what its top keywords are and how it ranks

on google, use this tool to know which

affi liate is ranking for the top keywords.

Copy Scape (www.copyscape.com) – FREE

If someone is copying your content on

your website just type in your domain

and fi nd out who has stolen your valuable

content. Remember, stolen content is not

cool and search engines might not respect

your site for not having unique content.

SpyOnWeb (http://spyonweb.com) – FREE

Type in an affi liate website and fi nd out

how many other sites it owns or manages.

You can even do the same with casino

operators.

Google Insights (www.google.com/

insights) – FREE

Find out the trends in keyword searches.

Yahoo Site Explorer (https://siteexplorer.

search.yahoo.com) – FREE

If you think link building campaigns are the

key to SEO then this tool will show you all

the links any website has pointing to it.

Google Keywords (https://adwords.

google.com/select/KeywordToolExternal)

– FREE

Find out how often keywords are

searched and fi nd similar matches.

Wayback Machine (www.archive.org)

– FREE

Find out what old sites used to look like

or get a good idea of how often a website

gets updated.

EXTRASLitmusApp (http://litmusapp.com)

– $50 and up

This website is great for testing how

your newsletters look in many browsers

and email clients and to test against spam

fi lters. Test your website in many browsers

to make sure they work with the most

common ones.

dotMobi (http://mtld.mobi/emulator.php)

– FREE

If you have a mobile site or want to

develop one use this program to do some

testing on phones.

Stats Remote (www.statsremote.com)

– $30 and up

Have all your program statistics pulled

into one program to let you know your

results and, of course, keep track of your

earnings. A must have for affi liates!

Block Websites (no website) – FREE

I have many websites that distract me

from doing work on my computer. Rather

than using programs on my browsers to

block it I prefer to get to the source and

make it diffi cult for me to unblock them.

Firefox, IE and Safari have features to block

this but I fi nd I can easily over-ride the

blocks and continue to waste time. On Mac,

Windows and Linux you can edit the host

page for this.¹ Thanks for taking the time to read this

article. I will be making a second part to this

article in the future as the tools of the trade

continue to change.

¹ For further instructions on how to block

websites, and for the full length article,

visit

www.rockbet.com/budapest-affi liate-

seminar.

JOHN WRIGHT is the marketing manager for Rockbet.com online casino and currently lives in Toronto, Canada. After obtaining a Bachelor of Applied Science in robotics at the University of Toronto he decided a career in gambling would be more fun and exciting. In 2002 he began playing poker, card counting and bonus hunting despite the requests from concerned friends and family members to pursue a real job. In 2003 he began creating his own affi liate sites teaching players the rules and strategies for online gaming. In 2005, he provided marketing services for 400affi liates.com and became the affi liate manager for ThisisVegas in 2007. At the start of this year John helped to launch Rockbet and is not only the marketing manager for the casino but also the casino and affi liate manager. In his spare time John enjoys travelling, reading, surfi ng and Muay Thai kickboxing. He can be reached at john@rockbetmarketing.com

igb ad temp.indd 1 18/3/08 16:45:39

INSIGHT

In the constantly changing Internet

environment, online marketers are

always looking for better ways to

improve acquisition and retention

rates; this can be seen in changes to

SEO strategy, advancements in PPC

tactics and the fact that overall affiliate

marketing practices are changing every

day. Yet, there is no marketing medium

that can drive results as well as direct

marketing practices, as it provides the

marketer with the ability to ‘touch’ the

consumer in a very personal, direct

and quick way as opposed to other

marketing channels. So what makes

direct marketing so effective?

WHAT EXACTLY DO YOU MEAN BY DIRECT MARKETING?Direct marketing is different from

other marketing methods for two

specific reasons.

1. Direct marketing is about sending

a streamlined marketing message

directly to the consumer without the

use of any other sources of media.

2. The main focus of a direct marketing

campaign is to get the consumer to

react to a specific ‘call to action’.

Generally speaking, this can be

tracked and measured more easily

than conventional marketing methods

regardless of market vertical.

You should also take into consideration

that there are three general methods of

direct marketing – email, direct mail and

telemarketing. This article will discuss

the background, history, day to day

practices and the impact this extremely

strong marketing channel offers both

operators and affiliates.

HOW DID DIRECT MARKETING DEVELOP INTO WHAT IT IS TODAY?Direct mail has been around for as long

as soldiers have been sending messages

to loved ones overseas and students

sending letters to their parents telling

them all is well. Mail has gone through

a huge evolution; from running on foot

for miles to the recipient, to a double

click on the mouse with a cup of coffee

in hand and no geographical boundaries

– the means of which the message is

delivered is constantly evolving.

Direct marketing practices have

been around since the 15th Century as

the first catalogue was sent out to get

young dames to shop ‘til they drop,

but it wasn’t until 1954 that modern

direct mail marketing methods were

used to acquire new potential business

– perhaps also trying to get people to

shop ‘til they drop. The first use of email

as a direct marketing method was in

1993, as it is reported that an email was

sent with a marketing message inside –

voila! Spam was born.

BENEFITS AND DRAWBACKS OF DIRECT MARKETINGEvery marketer’s ‘dream’ is to touch

the consumer in a personal way, as

each consumer will react differently

to different marketing methods and

different communications; direct

marketing allows both marketers

and affiliates to deliver a highly

concentrated message to our

customers/prospects.

By taking a direct marketing

approach, you establish a qualified

and potential database of consumers

as this method encourages loyalty

and immediate recognition as well as

develops a streamlined feedback system

in comparison to other marketing

methods. Another benefit is that you

can actually gather valid statistical

information on your target demographic

and consumer base, thus, giving you

more information to optimize future

direct campaigns.

THE BENEFITSOne of the greatest benefits of email

marketing is that a marketer can

track the funnel of an email campaign

relatively easily, as everything from

auto-responders, web bugs, bounced

messages, unsubscribe requests, read

receipts, CTR and actual responses

can be measured. This helps with the

optimization of the marketing funnel

and, ultimately, leads to a greater

number of total acquisitions as well as

being an excellent tool for retention

purposes as it creates loyalty and a

better ROI. In addition, the delivery

time of an email is relatively short (can

be seconds to minutes) and it is a very

cheap marketing channel (in comparison

to other marketing communications

such as TV, print and media buying).

Direct mail can also be an amazingly

powerful marketing channel as the

consumer receives an offer that is

direct yet private at the same time

(this also applies to email marketing).

On top of this, direct mail is quite easy

to send and can easily target different

market segments and verticals. If used

with proper database analysis, direct

mail marketing can be a very lucrative

practice. Another benefit is that when

creating direct mail you do not have to

worry about your message finding its

way into a spam box because you’ve

used ‘too many graphical elements’.

THE DRAWBACKSWhen talking about the drawbacks there

are several aspects of direct marketing

that can be quite aggravating to your

marketing efforts.

DIRECT MAIL Direct mail marketing suffers from

several drawbacks such as the fact it

costs a fair amount (although is still

cheaper than other channels), cannot be

tracked as well as email, is also slower

than email and due to the vast amounts

of junk mail being sent daily, you cannot

ensure that your direct mailing message

won’t end up in the trash.

EMAIL MARKETINGWhen looking at the disadvantages of

email marketing one does not have

to look any further than the issue of

spam. Due to large amounts of spam

emails being sent on a daily basis

iGB Affi liate OCTOBER/NOVEMBER 200918

One could think of email marketing as the more tech savvy offspring of direct mail but what is the relationship between the two today where it concerns online gaming? Is direct mail still relevant? How compelling does the call to action have to be in today’s offl ine campaign to bear fruit, considering that there is no ‘click here’ function on an envelope? The two forms of direct marketing share the same principle, and even have the same pitfalls – unopened junk mail on the doormat/junk mail in your spam folder – but what effectiveness do they share?

EMAIL MARKETING VS DIRECT MAIL

iGB Affi liate OCTOBER/NOVEMBER 2009 19

(there is more spam in the world then

legitimate emails) many email clients

and ISPs incorporate drastic measures

to fight illicit email marketing practices.

The bad news about spam filters is

that they sometimes filter legitimate

messages, thus, potentially preventing

your marketing message from reaching

the intended consumer. In addition, the

design of an email must be bland in

comparison to a direct mailing message

as emails that are full of images often

find themselves in the junk mail folder.

The use of creative and pictures

can have a significant effect on the

strength of your marketing message in

communicating emotions; something

that spam filters, in their over zealous

reach, are diluting.

IT ALL COMES DOWN TO THE CALL TO ACTIONAs stated before, direct marketing relies

heavily on the use of a call to action in

order to get the required results, but

how exactly do you get your audience

to react?

When creating a call to action

in an email marketing campaign, it

is extremely important to let your

audience know exactly what to do in

a manner that is easy to follow. It is

very important to control the mixture

of content against a clear call to action

as the latter needs to be simple and

clear enough to get the prospect to

react (call, email, download software).

This may mean placing a giant arrow

pointing to a ‘click here’ button, or

placing a shiny red box with the words

‘play now’ inside, but what is important

to remember is that if users don’t react,

you miss a sale. Either way you need to

guide your audience to the call to action

as failing to do so will seriously affect

your campaigns statistics.

Direct mail may not have a ‘click here’

button on the envelope but you can still

lead them to a call to action by following

these four simple rules:

1. Tell your audience what you want

them to do.

2. Tell your audience the benefits of

acting quickly.

3. Re-assure your audience on how easy

it is to give a response.

4. Guide them to where they need to go

in order to respond.

This may sound easy, but many direct

mail campaigns avoid using the above

principles and end up losing valuable

acquisitions because the consumer is

not exactly sure what to do with the

marketing message offered and as a

marketer/affiliate you must always test,

test and test again. There are many

ways to achieve an action (creative or

traditional) but it all depends on the

prospect/segment you are targeting.

You need to create a tailor-made

message in a way that is relevant to the

consumers you are targeting.

The most important item when

sending any type of marketing, email

or direct mail, is to make sure that the

message and funnel are all given in a

logical, easy to understand way.

THE MANY FACES OF DIRECT MARKETINGWhenlooking at direct marketing, there

are three main viewpoints for every

marketing campaign:

1. The operator

2. The affiliate

3. The user

If we take a look at these viewpoints in

terms of email marketing we will see

that on the one hand, the operator will

favor this method because it is easy to

analyze the statistics as well as being

cheap, but on the other hand, there is

always a danger that a percentage of

the emails sent may end up in the spam

box and in the worse case scenario, the

operator’s website could be blacklisted

among ISPs. By contrast, the affiliate

likes the method of email because when

sent, it is quick and generally quite

effective. However, the downside is that

collecting a proper sized double opt-in

email list may take a significant amount

of time (both these examples are also

true for operators) in addition to the

fact that sending emails through an

email server can prove to be expensive.

The user will usually open the email

according to the subject line and if they

like what has been conveyed by the

message, they will be more compelled to

answer the call to action.

When looking at direct mail marketing

the operator needs to prepare all ‘copy’

materials (which can be expensive) as

well as make sure it has analyzed the

database well enough to target the

proper message to the right people.

If done right (maybe a CD campaign

with a specific bonus attached), the

conversions can be great (many VIPs

have been acquired through offline

marketing methods). The affiliate’s

perspective on direct marketing can be

much different as the average affiliate

may not have the means to properly

distribute direct mail promotions.

Conversely, the user (assuming it is a

casino player receiving the promotion)

may develop a strong affinity to the

brand behind this ‘personal’ promotion

since it is actually entering their place

of residence.

CONCLUSIONBoth email and direct mail should

be part of any affiliate/operator’s

marketing portfolio as using a mixture

of marketing channels provides for

a stronger acquisition strategy and

ultimately, a stronger brand value.

Regardless of whether you place more

emphasis on email or direct mail, it is

the lead generation of the list itself

that will make for better success, with

the emphasis placed on the consumer

opting in to receive your marketing

message. On top of a proper lead

generation strategy, you must always

take measures to maintain a healthy

lead list; this means constantly cleaning

and reviewing the list and never

overusing it.

Our personal view on this subject

is that you must use both email and

direct mail as part of an effective

market portfolio because if both

methods are used properly, they will

drive quality traffic to your site, keep

your current players loyal and deliver a

better ROI.

PATHS OF RESISTANCE

Direct Mail Resistance Email Resistance

Post offi ce ISP

Human fi lters Email client fi lters

Junk mail Spam

Mail box is full Soft Bounce

JOSHUA KRIMBERG is the affi liate director for GaminGang. He has been

in the online marketing fi eld for over fi ve years with experience as both an affi liate and operator.

http://www.chanceroom.com

FEATURED COMMUNITY MEMBER, CATHY “LADYHOLDEM” ROBERTS

How and when did you become a gaming affiliate? I started out in the gambling industry in late

2004. I didn’t really believe people were

making money as gambling affiliates… well,

some money, but I also believed more of

them were grossly exaggerating than telling

the truth.

I found a casino affiliate forum looking

to set up some private poker freerolls – my

profit was to be the winnings from the

freerolls. I read every single post within a

few weeks – literally. I read many of them to

my husband. I followed links in posts, and

boy did I learn.

The people in this industry were amazing

and truly helpful to one another, I asked

questions, and I received invaluable

information in response.

Things really snowballed from there.

What were you doing previously? I have done a lot of things in the past,

including driving an ice cream truck,

managing call centers, working in the

travel field, working for my state, and in the

Human Resources department of a popular

retail store, and just prior to becoming a full

time gambling affiliate, driving a taxi.

That’s quite a selection – would any of these fall into the category of ‘my worst job’? I enjoy everything I do, or I find something

better to do, so I’ve done a lot of things.

I think that driving a taxi, although the

most fun I’ve ever had working, was my

‘worst job’.

I was robbed once while I was on shift;

that was a super scary experience that I’d

prefer never to relive.

The hours were also insane, 12 hours

a night, 7 nights a week. I barely knew

what my children looked like while they

were awake!

Did you manage to lean anything from that experience? Yes, taxi cab drivers do not get

maternity leave.

OK, moving on, what gaming verticals are you currently working across? In the gambling industry, I’m only

promoting the majors right now; poker

is my primary focus, followed by casinos

and then bingo, where I once worked

as a chat host.

Have you seen any shifts in the performance levels in any of these verticals since the fall of the economy? Actually, my numbers have all gone up,

not down.

Have you ventured into any new verticals that you sense potential in? I have been tinkering a touch with Rummy.

For now though, in the realm of gambling,

I think I’m really focusing on the big three

(bingo, poker, casinos).

Do you have affiliate commitments

outside of the gaming industry?

Yes, I work in a few other affiliate

industries, including dating, real estate

and travel.

How do these compare with the gaming industry in terms of revenue and stability of business? Travel is obviously down, however, if you

get into the right niches, there’s actually a

bit of an increase in profits. I’ve written a lot

of content in this industry over the last few

years, so I have a lot of insight into what’s

going on, where and when. I think that

helps me a lot.

On another note though, the gambling

forums and the affiliate conferences

have all made a big difference in the

gambling affiliate markets, so when you

do venture out, you find things to be a lot

more primitive.

What are your ambitions as an affiliate? Do you look to build a stable and successful business or do you aspire to super-affiliate status to push your business as far as you can take it? I have accomplished stable affiliate status,

in fact, I‘ve grown beyond my own dreams

of five years ago, but times change, dreams

get bigger, and now, I want so much more

than that.

What about those just starting out in the affiliate industry – is the overall gaming market saturated or is there still room for affiliates in certain (if not all) verticals to make a living? I think that new affiliates have an

advantage, if they get right in and get on

the right track. What I mean by that is that

so many new affiliates get caught up in

the things that don’t matter. They design

decent looking websites, with nothing to

offer.

I was guilty of that myself when I first

got into the industry. I poured my heart

and soul into two websites, always hearing

the cliché ‘content is king’ in the back

of my mind… yet I had no real idea what

content was.

I didn’t offer anything useful or valuable

to my visitors.

Brand new affiliates have a fresh outlook,

new ideas, and the eyes of a player more

than the eyes of an affiliate. Eventually, as

we start to talk more like affiliates and less

like players, we’re blind to the things we

used to see, like good banner placements

for instance.

What would be your advice to them in grasping this advantage? Learn, and build. When it looks like your site

is never going to rank for any useful search

engine term, and you’re losing faith in your

ability to work in this industry, don’t sell. Let

that site simmer if need be, let it age.

Start a new project. Affiliates tend to sell

out just before they really would have made

it, which is of course great for the veterans.

Would you advise them attend conferences if they can?Yes, definitely. Affiliate conferences light

fires in the souls of affiliates. Affiliates

from every sector come back with a new

redefined energy, new business contacts,

and often very lucrative deals.

How useful are theses conferences, Budapest as an example, to affiliates? The relationships built at these conferences

are invaluable – we as affiliates live in

this virtual world with no actual contact.

The conferences, if they did nothing else,

change all that and make us real to each

other. Networking in any business is an

invaluable tool.

Finally, what’s your gut feeling about the industry as we race towards 2010? I think the US market is getting ready

to take a dip, and then, the casinos (the

land based casinos) will emerge as online

gambling becomes regulated, and the

industry will go crazy once again.

iGB Affiliate AUGUST/SEPTEMBER 2009 21

INTERVIEW

iGB Affi liate OCTOBER/NOVEMBER 2009

INTERVIEW

22

TAMING THE DRAGONS

LET’S START WITH some personal background and on your gaming platform Gobetya. I am 33 years old and have three kids. In

the 1990s, I worked for British Telecom

and that’s where the original idea for

Gobetya came from. After leaving BT,

I started a small industrial services

business for which I appeared on the

first pilot show of Dragons Den in 2004. I

have the honour of being the first person

ever to be offered an investment!

In 2005, I started Gobetya Limited,

which is based in Glasgow, UK. Over

the past four years, Gobetya has

been developing a unique and secure

multiplayer gaming and gambling

platform. This allows both real money

multiplayer gaming and standalone

gaming for mobile and wireless devices.

The company licenses its platform to

brand owners, thus allowing them to

monetize their own customer bases via

mobile play. Gobetya’s principal USP is

its B2B multiplayer poker network that

can support multiple partners sharing

the same liquidity across a single

platform. The platform can support up

to 10,000 concurrent players, playing at

over 1,000 tables, all on mobile devices.

According to Juniper Research the mobile gambling market will reach $16 billion dollars in less than five years. Do you believe that the industry will exclusively shift to mobile? Absolutely, there has been more

progress made in the last two years in

relation to mobile gaming than in the

past ten combined. I think the speed of

change will now really accelerate. An

important, yet staggering statistic that

will further drive the adoption of mobile

play is the prediction that smart phones

will out sell PCs by 2011.

I understand that Gobetya has a platform, an assortment of casino games for partners to enhance their offering…Gobetya’s product offer is based on the

V2 platform that was created by the

company and for which all IP, design

rights and copyrights are registered

to Gobetya. The V2 platform has been

built to support a B2B business model

and, therefore, was designed from the

outset to provide shared liquidity across

multiple partners as well as unique

branding options for each individual

partner.

The V2 platform and unique mobile

interface has been designed to be

conducive and intuitive to the mobile

user. The multiplayer poker user

interface has been designed with the

online and mobile gambler in mind,

with a host of innovative functionality,

including table chat and private chat

options as well as mood avatars that

enable players to show others exactly

how they feel. Another unique aspect of

the system enables partners to deliver

advertising messages, promotions

and offers to mobile players through

integrated adserving that can be

programmed to activate at preset times

within the application, such as when a

player is leaving a game. These advanced

functionalities are aimed at creating the

first mobile poker experience equivalent

to the quality and security of online play

Amongst a number of signifi cant milestones in a rapidly blossoming career, Patrick McKay, founder of mobile gaming platform, Gobetya, can lay claim to being the very fi rst entrepreneur to be offered an investment on the hit BBC TV show, Dragon’s Den. Here, we fi nd out more about the man who was fi rst to tame the Dragons. Questions by Rene Colin Magri.

iGB Affiliate OCTOBER/NOVEMBER 2009 23

as well as providing the tools for the

operator to cross-sell between online and

mobile play. The Gobetya platform has

been specifically designed to appeal to

the new generation of time constrained,

tech-savvy consumers who increasingly

demand their entertainment ‘on the

go’. With Smartphone sales (with touch

screen functionality) to surpass PC sales

by 2011, I believe that Gobetya is uniquely

positioned to capitalise on delivering

industry leading gambling and gaming

services to the new iPhone generation.

The Gobetya platform enables multi-player functionality. How important is this viral element for the business?I don’t think that being viral or

offering viral advertising is one of the

cornerstone challenges that mobile

gambling faces. There are far bigger

issues out there. Mobile gaming is a very

tricky business and very complicated.

Mastering mobile multiplayer gaming

is by far the most complicated and

technically challenging aspect of all

mobile gaming.

Is the mobile gambling solutions space a crowded one? Who are your competitors?I wouldn’t say that it’s any more

competitive that any other sector and

we welcome competition as it creates

awareness for the industry as a whole.

A lot of what you would class as ‘mobile

gaming companies’ are doing business

with each other, and we welcome that.

Probability, a competitor of yours, has recently launched a new platform called Zaphod. The platform in question has many social features: networking, community features and more. What is your take on Mobile 2.0, and will we see an up-take of community features in the mobile segment?I would not say that Probability is a

competitor as such. In fact, I would class

them as a potential client, as we are a

B2B software platform/product provider.

We have built our software so that we

can easily plug our multiplayer products

into a partner’s backend.

In relation to Mobile 2.0, I believe

that the mobile gaming industry has to

attract a new breed of consumer. These

customers are more casual, social and

tend to consume entertainment content

ad hoc and on the go. In essence, their

first experience of gambling is likely

to come from placing a wager via a

mobile or social media site. Therefore,

community features that are standard

within social media and community

based online sites are important for

mobile offerings. We have incorporated

several of these features into our

thoughts in developing our own content.

Is mobile gaming a direct transfer from online gaming? How do you attract and reach new

markets? I believe that the best way is

not to reinvent the wheel, but simply

to package and deliver it differently; in

this case, delivering proven entertaining

customer experiences via mobile. In

essence, the experiences and products

are very similar, but a retail customer

may never bet online and the same could

be said for an online or mobile customer.

The flip side of that coin is that mobile

gaming will open a new incremental

market to the entire gaming and

gambling sector.

Does mobile gambling compliment the online offering?Yes, it’s an extension of the retail and

online markets. However, I believe by

offering content direct to mobiles it can

bring new customers to the gambling

and gaming sector as a whole. Mobile will

lower the cost to acquire players to the

whole sector.

A bit of a sociological point: do you think that because the mobile is essentially a personal device, it will augment the up-take of gambling from non-traditional gamblers as this new way of gambling is more private? Thus, expanding the market dramatically?Mobile will attract a new breed of

consumer to the market as a whole. I

think that the development of mobile will

make it easier to bring new customers

to the gambling market but that doesn’t

mean that these new customers will

solely use mobile. I think that’s what’s

being missed by some of the online and

retail industry. Mobile is an important

way of communicating and enforcing a

brand’s whole offering. It is not just a

standalone, isolated channel.

Where are we going in terms of Handset design? Touch screen and Smartphones are the

future. In terms of gaming experience

for the players, the ability to touch and

participate in the game is as real as it

gets… its almost virtual.

Tied with this, what about the developing nations and the low-end phones available there? Juniper estimates that by 2014 more than 700 million phones in the market will be of low end functionality. Problem or opportunity? Low end mobiles are limited to what can

be done with them. We can push and

squeeze them as much as possible but

they are simply not designed to offer

interactive gaming services. You may be

able to connect to the Internet via these

devices and that may allow some sort

of download or connection, but it’s very

limited.

Partnerships with mobile operators are the order of the day it seems. Probability partnered in the UK with 3, whereby more than two million handsets will have a pre-installed link to an online gambling offering. Do you think mobile operators are warming up to mobile gambling? I don’t think it’s about gambling, it’s

about content as a whole. You must give

consumers choice. If they are forced

to only buy or play selected mobile

networks’ own offerings, the industry

will suffer. I think that’s been tried but

long-term it doesn’t work. In terms of

operators warming up to the idea; they

have no choice… they need data usage to

increase.

What will be the ultimate driver in taking gaming to mobile? It’s the iPhone and Smartphone device.

These devices have educated the

consumer to trust and believe that

buying or playing with content on the go

is the same as online. I’m sure that RIM

(the blackberry manufacturer) is now the

fastest growing company in the world,

which tells us about the need for content

on the move.

It will mirror online but has taken a bit

longer to mature. The iPhone generation

will be the generation that makes mobile

happen. We all expect and now demand

content on the go… what the customer

wants, the customer gets.

iGB Affi liate OCTOBER/NOVEMBER 2009

OPINION

24

FEATURE

IT’S NO SECRET that most online bingo players are women, and for the last few years the marketing behind the various bingo products out there has focussed heavily on bringing women into the market. For most online gambling companies bingo became the star product in this conscious move towards marketing directly to the (previously) untapped female demographic, with signifi cant marketing spend allocated to it. Bingo marketing and the marketing of gambling products in general is now split between targeting the smaller segment of savvy, established female online gamers, and the larger bulk of women and potential gamers that are still out there. So how can affi liates move into this lucrative demographic segment and get a piece of the action?

In the UK, 70% of all online bingo players at MariaBingo are women and range from 18 up to 55-plus years in age, with most of them spending, on average, almost three times as much as men in the bingo rooms on a monthly basis. The success of the game amongst the female audience has largely been attributed to the simple fact that it is an easy and fun game that allows for a high level of social interaction without tying people down for too long, unless they chose to stay themselves.

As has been seen over the years, men tend to gamble for the excitement and adventure it adds to their everyday life while women are more likely to have moved into the online space in search of entertainment, social interaction and last but not least, escapism from their everyday world. This slow but steady online migration of women has, over the last few years, made online gambling companies start to allocate funds as well as specifi cally develop their marketing campaigns and products to cater for this large segment of potential players. The fact that this is a demographic with time to spare and substantial purchasing power to go with it has fi nally started to get the attention it deserves.

For affi liates, this means just the same

as for the larger gambling companies; there is a whole brave new virtual world with millions of its people, ready to be explored. Working with MariaBingo, we have seen many interesting differences when marketing to women compared to men. Here below, I have listed three things that have helped increase the success of MariaBingo in its approach to advertising gambling products for women.

THE LOOK AND FEELFirstly, and probably most obviously (for me at least), marketing to women does not just mean slapping lots of pink on your site or adding some gossip features to it. Women bingo or casino players tend to be just as savvy about the product and the promotions as men, so rather than focussing on making a whole new “womanized” site, provide them with relevant information in a well designed user environment. Even novice female players do not want to waste time on a patronising site trying to fi nd information or fi gure out how to use it. They value highly developed usability along with great promotions presented in a relevant way.

NOT EVERYONE IS A BINGO PLAYERSecondly, faced with the current economic climate and with the bingo market reaching an unprecedented maturity level in the UK, many online companies are starting to look beyond bingo when targeting women players. As the female demographic is getting more established online, the demand for a broadened selection of products, rather than just bingo, is increasing. The various successful cross sell campaigns on MariaBingo, promoting our other products to our bingo players, has shown that casino and slot games are particularly well received and deliver high conversion rates. Working closely with the online gaming companies, affi liates can optimise their product mix and increase the appeal of their product selection, both to the experienced and novice player.

AGE IS JUST A NUMBERThirdly, online gaming seems to have an age aspect to it; women who are playing online tend to be older than their male counterparts. At MariaBingo, the average female bingo player is 37 years old while the male player is about 35 years old. At MariaPoker, the average female poker player is 33 years old, while her male counterpart is three years younger. Age does not make a difference as to who will spend money gambling online, but it becomes interesting when looking at where these people can be found on the Internet as well as how they expect to be treated online; something that can be seen especially well in how a site uses its language. We have continually found that the highest conversion rates are coming from campaigns where items such as editorial, advertorials, articles and other relevant pieces of text have featured, showing that women tend to value information as well as the way they are addressed online more than they do a banner or image.

At the moment, marketing to women seems to be something of a holy grail, with everyone wanting a piece of the action. In the end, when it comes to experienced players in bingo, casino, poker or games, gender is not really relevant at this level. The biggest challenge as well as the largest potential within this demographic group seems to lie more in how the approach to, and introduction of the novice player to the world of online gambling is dealt with. This is also where gender difference seems to take on its most prominent role, but more on that in my next article.

How to Approach Women Online

LINDA NISKANEN is Marketing Manager at MariaBingo, Western Europe. After completing her MA (hons) Economics with Economic history in Edinburgh, Linda moved to Spain and worked in Business process outsourcing for a while before moving into IT consulting. In combination with her move to London, Linda got sucked into the gaming industry and has enjoyed the challenges so much that she is still here.

Sportsbetting

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in BookmakerS’ meeting rooms up and down the country heads are being scratched, brains are being stormed and ideas are being bounced. The UK betting market is fi ercely competitive, close to saturation… the task for industry professionals is to fi nd the next ‘big thing’: the innovation that will allow them to steal a march on the rest.

Sunday racing has not been around for long, however, ‘Sunday driving’ is probably the best way of describing the formative stages of the betting industry. For years, betting fi rms meandered through country lanes, took a few wrong turns and got stuck behind the odd tractor.

Now, however, the industry has got itself

“ODDS COMPILING IS A SIMPLE CONCEPT. ITS EXECUTION,

HOWEVER, ISN’T THAT SIMPLE. THAT LEVEL OF COMPLEXITY WOULD TURN PYTHAGORAS INTO A GIBBERING WRECK.”

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iGB Affiliate OCTOBER/NOVEMBER 2009 27

the highway. It’s only matter of time before

the ‘next big thing’ comes along and the

industry goes after it at full speed.

Initially, we had the backstreet bookie

offering singles on the horses. After

legislation was introduced in the UK, we

had the regulated betting shop, although

up until ten years ago, singles on certain

football matches were sanctimoniously

waved away. ‘Trebles only, sir’ was a regular

refrain when canny punters tried to put a

fiver on Arbroath to beat Alloa in the lower

reaches of the Scottish league.

Gradually, the major players began to

open call centres to enable you to bet from

the comfort of your front room. Then came

the Internet. ‘It’ll never work’, they cried,

or, as one well-known senior executive

of the gaming world put it, “We’re not

concentrating on developing our Internet

product because quite frankly, we don’t see

it as the future”.

How wrong he was. Online gambling is

the future and the only thing holding it

back is that imagination can’t keep up with

technology. (Or should that be technology

can’t keep up with imagination?)

So what is the focus for gaming firms at

the minute and where is innovation leading

us? Here are my contenders:

LIVE STREAMINGWhy even leave the website when you can

watch the snooker and bet on it without

going elsewhere. All good in theory except

the technology isn’t quite there yet. The

quality is poor and the time delay means

the black ball (snooker) will have already

been missed before you’ve even thought

about placing a bet. But as technology

improves this will become a central part

of the industry, and it’s likely that major

sporting rights holders will hold similar

pricing auctions for online as we currently

have with TV. American sports are already

setting up their own Internet channels to

screen live events – it won’t be long before

Europe cottons on.

POKER/CASINO/ SKILL GAMES/BINGOInnovation galore. Live dealing,

tournament betting – opening up new

market opportunities by appealing to a

whole different demographic. It’s going

to increase the traffic on your website

exponentially, but once you have the poker,

the live dealing casino and themed bingo

hall, what more can you realistically add

before people reach overload? Have we

reached a natural plateau, or is there still a

product out there which is going to set the

world alight? I don’t know but if there is can

you give me the nod first please…

So if we are not yet looking to the above,

what are we looking at to drive the industry

forward, where will the growth come from

and what should be the focus for the gaming

community? We all lead busy lives, so when

we eventually get some leisure time we want

an immediate fix. If, like me, your fix happens

to be a sneaky bet on football, you don’t

want to be constrained by time. You want to

sit down in front of Sky, either in the pub or

in your front room, log in to your account

via laptop or mobile and bet. You don’t want

to be told the game has kicked off and you

can’t place your bet. There was a gap in the

market and it was quickly filled, hence the

in-running betting revolution.

When I started in the industry 15 years

ago, you could bet in-running on precisely

nothing. Once the event started that was

it, market closed. Then one firm decided

to update a golf tournament ‘in-play’ on

the final day. This meant that you could

actually watch the leader tee off, decide

if he was playing well or not, and bet

accordingly. Brilliant stuff, although by all

accounts it wasn’t the most technologically

advanced of affairs. This lack of technology

is probably the reason why it has taken

so long for in-running betting to progress

beyond the one or two markets updated

during an event to the current situation

where some firms are trading hundreds of

markets with prices updated in a flash.

Odds compiling is compellingly simple

in its concept. How many outcomes of that

event are there? What percentage chance

do you think that each component has of

winning? Make sure that they add up to

100, add a bit to each component for good

luck, convert to a fraction or a decimal, get

people to bet equally on every side and

take the margin, job done!

Its execution, however, isn’t that

simple. You have to account for the stats

of the event in question, injury worries,

weather, time of year, the importance of

the competition and so on (not forgetting

your existing and long-term liabilities upon

which the outcome of the event will have

an affect). Try factoring all of this in and

update the outright win, win-draw markets

in real time in the middle of a football

match when the team who were favourites

before the start of the game have gone a

goal down and had their star player sent

off. Then try updating the 100 plus markets

on every live football match. All of this

needs to be updated and put back up within

a moment so clients can trade. The level

of complexity would turn Pythagoras into

a gibbering wreck and is the reason why it

is only in the last two or three years that

firms have started to make such strides.

Today’s market is all about choice: who

do you bet with and what do you want

from them? Not happy? Go elsewhere.

This is of course what has driven firms to

invest so heavily in pricing engines which

can compute vast amounts of complex

calculations in milliseconds. With the

maturing of the Internet and the opening

up of the world markets, your service has to

be exceptional and any interruption to your

prices kept to a minimum or your clients

will go elsewhere. Technology is what sets

you apart.

NICK BUTCHART is Head of Operations at extrabet.com, the recently re-launched sportsbetting offering from the FTSE 250 listed IG Group, which has incorporated all of its sportsbetting and casino offerings under one roof to allow a truly unique betting experience. Nick has 15 years experience in the sportsbetting world.

Extrabet Statistics Here at extrabet.com it takes us 30 milliseconds to update 200+ prices after a goal is scored. We can display these prices in three different formats: spread bets, traditional fixed-odds and 0-100 binary markets. Oh, and we also allow you to lay, as well as back, any of our markets. If that isn’t enough, we value your bet in real-time throughout the duration of an event allowing you to take a profit or cut a loss at any point.

This is simply the tip of the iceberg. We are currently in the process of developing a multiple trading tool that allows you to choose up to five different markets, from five different events, and have any combination of singles, doubles, trebles, four-folds or accumulators. ‘So what’ you may say. Well the impressive bit is this: you’ll be able to have differing stakes for each bet component, and we’ll value all of the separate markets in real time both during and in between the individual events. In short, we’ll offer in-running multiples which allow you to take a profit or cut a loss at any point! Difficult, yes; impossible, no. Too much choice? I don’t think so. After all, can you ever have too much choice?

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ROUND TABLE

iGB Affi liate OCTOBER/NOVEMBER 2009 29

NICK BUTCHART, HEAD OF OPERATIONS, EXTRABET.COM In terms of its popularity as a betting medium, football has grown steadily year-on-year over the last decade to a point where it now accounts for approximately 50 percent of our revenue and is thus, the single biggest contributor to the business. Should we be surprised by this? Well in all honesty, no; more people in Europe play, watch or simply absorb the beautiful game than all other sports combined. At the top tier of the game there is almost blanket TV coverage of football, often to the exclusion of other sports. It stands to reason that the more access people have to live sport the more likely they will be to watch it and, if so inclined, have a bet. This increases turnover for bookmakers and hopefully revenue, while also fuelling the desire to offer and develop new areas of interest. This can be most vividly seen in the proliferation of in-running services currently being developed for football.

That said, the popularity and development of certain other sports is on the rise – as the access to live sport increases, so does the interest in betting on them. We have, for example, seen a two percent increase in the number of bets struck on golf and tennis over the past four years, indicative of the broadcast coverage now afforded to these sports. Dedicated live coverage on a weekly basis means that interest in the tennis and golf tours no longer solely revolves around each sport’s four major tournaments.

The advent of live streaming is, therefore, of obvious interest to all bookmakers and it is my belief that over the next ten years, it will change the face of sports coverage. This season, the NFL is advertising live streams of games and it cannot be long before the major European sporting bodies launch partnerships with online fi rms to enable accredited coverage of all their events. The global reach of such technology is far in excess of the current

television-based service and I would envisage that in the near future I will be able to log on and watch whatever sporting event I want from any part of the globe, and the quality will be near perfect. The effects of this can already be seen in the expanded services that many are beginning to offer. The revenue streams are beginning to emerge, the interest is there and as technology catches up with desire, they can only become an increasing part of all sportsbook services.

However, at this stage the quality isn’t quite there. To trade events successfully you need reliable ‘real-time’ pictures, but, for now at least, that isn’t the case. They may be good enough to watch but they aren’t yet good enough to bet on. When they are, and with the inevitable opening up of certain restricted markets, you will see the industry take on a truly global perspective. This will alter the balance of revenue streams as we know them and maybe, just maybe, knock football off its perch.

REVENUE STREAMS BEYOND FOOTBALLFootball is the biggest driver for many European-facing sportsbooks, more so now that the consumer has embraced in-play betting. But how is the market outside of football developing? Has the growth of live streaming suffi ciently increased the visibility of fringe sports to make a monetary difference? We asked three people in the know…

REVENUE STREAMS

ROUND TABLE

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ROUND TABLE

30 iGB Affi liate OCTOBER/NOVEMBER 200930

JAMES ARNOLD, EUROPEAN AFFILIATE MANAGER, SPORTINGBETSportingbet generates a substantial proportion of its total revenues from football. It is, however, worth highlighting that the company has always followed a strategy of market localisation, and this applies as much to the type of sports and games that people prefer to gamble on as it does to the way in which they gamble, and the languages in which they do so.

Around the world and across Europe there are substantial differences in the way in which people want to interact with gaming companies and gamble online. Football continues to be the main revenue driver across European markets accounting for over 60 percent of Sportingbet’s total sports revenue. Tennis and basketball are also showing consistent and sustained growth owing, at least in part, to the popularity and success of live streaming and in-play betting.

There is no doubt that the continuing evolution of in-play betting and live streaming has lead to signifi cant growth in what may have traditionally been viewed by sportsbooks as smaller revenue drivers or ‘fringe’ sports such as darts, volleyball and snooker. This has also mirrored the relative decline of previously popular sports as betting mediums such as golf. The opportunity for Sportingbet customers to bet in-play on markets such as ‘colour of outshot’ (darts), next point and colour of next ball potted (snooker) has vastly increased the potential revenues that can be derived from these markets, and as such, their signifi cance to the business as a whole.

Basketball is a good example of a market in which Sportingbet has seen strong growth outside of football. Our continued sponsorship of Euro League Basketball, combined with market leading prices and selection of in-play markets, has allowed us to achieve a substantial and growing market share.

We believe that by offering in-play markets and live streaming we are not only changing the way in which people are gambling, but also changing the way in which people view and consume live sport. Traditionally, watching live sport and placing a bet were two separate actions, but with the advent of live streaming and in-play markets the lines are becoming blurred. This has resulted in sportsbetting appealing to a totally new breed of younger, tech savvy customers preferring to watch live sport and gamble via a single medium.

As the evolution of online gambling continues the signifi cance of in-play markets and live streaming will increase with customers demanding more choice, instant engagement and the ability to view the games, matches and races they choose to, 24 hours a day. As is its tradition, Sportingbet will continue to increase the development of smaller sports and markets in order to offer its customers more choice and fl exibility in the way in which they choose to gamble on, and view live sport.

LLOYD PURSER, HEAD OF ONLINE MARKETING, EXPEKTAt Expekt, football has been the main driver of turnover across Europe in both fi xed odds and in-play betting since our inception ten years ago. As mentioned in the question, football is very well suited to in-play but there are also other lower profi le sports with a steady fi xed odds turnover that have grown in stature within in-play.

If we take Europe as a whole, we have seen sports like tennis proliferate in terms of in-play betting. It has been to such a degree that recently, tennis in-play has been catching up with football in terms of money placed. This has led us to further develop the product adding more live streamed matches and increasing the in-play portfolio to not only Grand Slams, ATP and WTA events, but now to Challenger tournaments.

There are other sports which are growing in terms of in-play but they tend to be more localised. For example, our customers are very active on ice hockey in Scandinavia, basketball in Southern and Eastern Europe and handball in Central Europe. Although the sports do maintain a decent percentage in terms of fi xed odds, there is still a long way to go in terms of them competing with football and tennis where in-play is concerned.

Outside of Europe, US sports have always been good revenue generators. Fixed odds can maintain the turnover on NFL and Baseball but in-play is more challenging due to the time difference for European customers.

With regards to whether live streaming has had a monetary impact for Expekt in sports outside of football; it is still very early in our product lifecycle. We launched our live streaming package across Europe to coincide with the kick off of major European football leagues back in August.

We have one of the most complete packages on the market, especially in Scandinavia and the product has proven to be an excellent extension to the portfolio both in terms of acquisition and retention.

We are focusing on the major sports and events for our live streamed offering and undoubtedly, showing the best live matches in less popular sports than football (basketball, handball, etc) will have a positive effect on the revenue we generate, especially in-play. If we were to do this round table again in a year’s time, I think we will see that tennis is taking an even bigger piece of the action in-play, especially having had the opportunity to live stream the majority of the majors and ATP events.

There is no doubt that the future is in “live” and Expekt will continue to add further sports and events to its live streaming package and continue to develop further in-play opportunities for its customers. This will allow us to deliver more value to our customers and in turn, deliver more revenue to our affi liates.

“IF WE WERE TO DO THIS ROUND TABLE AGAIN IN A YEAR’S TIME, I THINK WE WILL SEE THAT TENNIS IS TAKING AN EVEN BIGGER PIECE OF THE ACTION IN-PLAY.”

NICK BUTCHART is Head of Operations at extrabet.com, the recently re-launched sportsbetting offering from the FTSE 250 listed IG Group, which has incorporated all of its sportsbetting and casino offerings under one roof to allow a truly unique betting experience. Nick has 15 years experience in the sportsbetting world.

JAMES ARNOLD is the European Affi liate Manager for Sportingbet PLC. Prior to joining Sportingbet in February 2009 James spent two and a half years at Gaming Media Group where he progressed to Head of Affi liate Marketing promoting a range of brands including PokerHeaven.com. James cut his teeth at IMG in the Sponsorship & Advertising department of Trans World International, and has worked in the online affi liate sector since 2003. James.arnold@sportingbet.com, +44 (0)20 7184 1678.

LLOYD PURSER is Head of Online Marketing at Expekt. With over ten years experience in both traditional and online marketing Lloyd has been managing the team at Expekt since 2007. In his role, Lloyd has responsibility for the affi liate program, media performance and tracking, social media marketing, offsite SEO, campaign management, global media planning/buying and business development.

Supplement Sponsored by:

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IGB_210x297_Extrabet.indd 1 16/09/2009 15:21:32

iGB Affiliate october/november 2009

sportsbetting supplement

32

The way iT really goes is that yours truly, head of one of the most respected and advanced technological groups within the communications and content industry, delivering world-wide sports information in real-time 24 hours a day, seven days a week all year, does not even use an ATM. Need cash? That is why my pants have pockets and I have a wallet which, by the way, is used only on special occasions. At other times, a simple rubber band with a sterling silver clip and engraved initials. And, yes, I buy my cars “with everything included”, no listings or discussions concerning same necessary.

PoinT?I never had much faith in affiliate relationships, in all honesty, and envisioned those sites as simply anyone and anything, located anywhere on the planet with sites that depicted not much of anything but always had room for another banner and whatever KFC monies trickled in every month.

wrong!Whether this applies to you or not, there are affiliate sites, very focused on the gaming industry, that are getting high five figure checks (USD) monthly and many doing even better than that. Impressive – very much so. Do the smaller ones still exist? Of course. It is the nature of that which is available and the alliances achieved over the years.

Sports are here to stay and billion dollar venues, like that of the Dallas Cowboys’ Cowboy Stadium, are starting to dot the landscape. Others like that one? Not likely right now. Close, but not quite as ostentatious or Texas style… not even the Tokyo Dome in Japan. Been there, done that. Yet to visit the Cowboys.

Along with sports comes wagering. It is what fans do besides cheering, rooting, painting their bodies in their team’s colors, wearing somewhat ridiculous outfits (and not so ridiculous team attire), leaving the wives who could not care less to fend for themselves on weekends, brain-washing children and investing a few hard-earned Dollars, Quid, Euros, Pounds, Yen, Francs, Pesos, Rubles in the eventual outcome of a given event.

Directing these devoted enthusiasts and self-styled aficionados to the source where they can place their wagers is a business

unto itself and it has grown greater than Topsy ever imagined… or I.

There will always be zealots that preach the evils of gaming, how it will ruin lives, destroy families, cause more gun sales than the NRA, disrupt the integrity of the sport… any sport, and be the antithesis to a wonderful life and picture perfect societal existence. Such is not the reality. It is the way to disparage, frighten and separate and distinct from the norm.

Excuse me! It is the norm! It is what people do. A government, for example, cannot conscionably encourage the populace to go to the cookie jar, the bank or the trust fund to wager on a lottery daily, weekly, monthly in an attempt to win a prize that ranks right up there with any one of them suddenly having the ability to soar across the skies with eagles and without a plane. It is not going to happen. Yet, that is good, purchasing lottery tickets, and wagering a slightly larger amount on Manchester United, the New York Yankees or Dallas Cowboys is bad.

It is hypocrisy by its very utteranceThe engine is the world of gaming and the affiliates, coupled with the players and punters, are the freight cars behind it. The tracks have been laid for miles around the globe and the trip has no end with room for limitless numbers of passengers. If the economy, the recession, has caused a bit of a lull at present it is only temporary. If the governments that object and create the unenforceable rules that emanate from parliamentary and congressional gatherings create hurdles, the bettors and bookmakers will find their way around and over them. Whether it is due to that which takes place offshore or the advances in communications that allow contact between two human beings from anywhere at any time, on phones to computer. The facts and resolve, when in place, are that gaming is here to stay and affiliates that promote it to their multiple audiences will continue to expand, create more and more alliances, improve their sites and start looking for summer homes in Cannes with a Ferrari in the driveway.

There are levels, as there are with any business. Some among those that go to affiliate conventions from Amsterdam to Budapest have created incredibly productive and financially rewarding alliances. Others are looking for their opportunities. And, the bookmakers are willing to speak with

anyone that will promote their efforts. It now becomes a buyers’ market.

How much are you giving, what ●●

percentage? Based upon play or winnings?Do you send details on revenue, ●●

substantiated and factual? How do I know?What can I expect to earn?●●

How often do I get paid?●●

Will you include reconciliations for ●●

all payments?Will you take care of expenses for me ●●

to attend the affiliate conference(s)?Will you furnish all the ads, banner ●●

or otherwise?

And so it goes, one after the other, and rightfully so. There are a few things that are forever, regardless of all else… one is wagering on sports and the other is sexual to satisfy the presumed needs of those whose appetites are not satiated elsewhere. Affiliate relationships are one more ingredient in the mix. They work. I am not going “oh for two” after questioning the viability of phone cards.

The waters in which one swims as an affiliate may not be the safest from time to time but those particular bodies… oceans, seas, any portion of the briny deep… are forever and, since God Himself (or Herself) started it all by gambling on Adam, then Eve, who can question its credibility and intention to be part and parcel of the human experience?

Some ThingS are Forever…“There are a few Things ThaT are forever, regardless of all else… one is wagering on sporTs.”

From the same guy that said phone cards would never work…

MiCKey CharleSAn attorney by training, Mickey’s background includes newspaper syndication, talk show host, panellist/moderator and chairperson at conferences worldwide. He is a pioneer in the audiotex industry, sports wire services and sports displayed on the Internet. He is President and CEO of The Sports Network, an international real-time sports wire service with customers throughout North America and Europe.

Supplement Sponsored by:

iGB Affiliate october/november 2009

sportsbetting supplement

32

The way iT really goes is that yours truly, head of one of the most respected and advanced technological groups within the communications and content industry, delivering world-wide sports information in real-time 24 hours a day, seven days a week all year, does not even use an ATM. Need cash? That is why my pants have pockets and I have a wallet which, by the way, is used only on special occasions. At other times, a simple rubber band with a sterling silver clip and engraved initials. And, yes, I buy my cars “with everything included”, no listings or discussions concerning same necessary.

PoinT?I never had much faith in affiliate relationships, in all honesty, and envisioned those sites as simply anyone and anything, located anywhere on the planet with sites that depicted not much of anything but always had room for another banner and whatever KFC monies trickled in every month.

wrong!Whether this applies to you or not, there are affiliate sites, very focused on the gaming industry, that are getting high five figure checks (USD) monthly and many doing even better than that. Impressive – very much so. Do the smaller ones still exist? Of course. It is the nature of that which is available and the alliances achieved over the years.

Sports are here to stay and billion dollar venues, like that of the Dallas Cowboys’ Cowboy Stadium, are starting to dot the landscape. Others like that one? Not likely right now. Close, but not quite as ostentatious or Texas style… not even the Tokyo Dome in Japan. Been there, done that. Yet to visit the Cowboys.

Along with sports comes wagering. It is what fans do besides cheering, rooting, painting their bodies in their team’s colors, wearing somewhat ridiculous outfits (and not so ridiculous team attire), leaving the wives who could not care less to fend for themselves on weekends, brain-washing children and investing a few hard-earned Dollars, Quid, Euros, Pounds, Yen, Francs, Pesos, Rubles in the eventual outcome of a given event.

Directing these devoted enthusiasts and self-styled aficionados to the source where they can place their wagers is a business

unto itself and it has grown greater than Topsy ever imagined… or I.

There will always be zealots that preach the evils of gaming, how it will ruin lives, destroy families, cause more gun sales than the NRA, disrupt the integrity of the sport… any sport, and be the antithesis to a wonderful life and picture perfect societal existence. Such is not the reality. It is the way to disparage, frighten and separate and distinct from the norm.

Excuse me! It is the norm! It is what people do. A government, for example, cannot conscionably encourage the populace to go to the cookie jar, the bank or the trust fund to wager on a lottery daily, weekly, monthly in an attempt to win a prize that ranks right up there with any one of them suddenly having the ability to soar across the skies with eagles and without a plane. It is not going to happen. Yet, that is good, purchasing lottery tickets, and wagering a slightly larger amount on Manchester United, the New York Yankees or Dallas Cowboys is bad.

It is hypocrisy by its very utteranceThe engine is the world of gaming and the affiliates, coupled with the players and punters, are the freight cars behind it. The tracks have been laid for miles around the globe and the trip has no end with room for limitless numbers of passengers. If the economy, the recession, has caused a bit of a lull at present it is only temporary. If the governments that object and create the unenforceable rules that emanate from parliamentary and congressional gatherings create hurdles, the bettors and bookmakers will find their way around and over them. Whether it is due to that which takes place offshore or the advances in communications that allow contact between two human beings from anywhere at any time, on phones to computer. The facts and resolve, when in place, are that gaming is here to stay and affiliates that promote it to their multiple audiences will continue to expand, create more and more alliances, improve their sites and start looking for summer homes in Cannes with a Ferrari in the driveway.

There are levels, as there are with any business. Some among those that go to affiliate conventions from Amsterdam to Budapest have created incredibly productive and financially rewarding alliances. Others are looking for their opportunities. And, the bookmakers are willing to speak with

anyone that will promote their efforts. It now becomes a buyers’ market.

How much are you giving, what ●●

percentage? Based upon play or winnings?Do you send details on revenue, ●●

substantiated and factual? How do I know?What can I expect to earn?●●

How often do I get paid?●●

Will you include reconciliations for ●●

all payments?Will you take care of expenses for me ●●

to attend the affiliate conference(s)?Will you furnish all the ads, banner ●●

or otherwise?

And so it goes, one after the other, and rightfully so. There are a few things that are forever, regardless of all else… one is wagering on sports and the other is sexual to satisfy the presumed needs of those whose appetites are not satiated elsewhere. Affiliate relationships are one more ingredient in the mix. They work. I am not going “oh for two” after questioning the viability of phone cards.

The waters in which one swims as an affiliate may not be the safest from time to time but those particular bodies… oceans, seas, any portion of the briny deep… are forever and, since God Himself (or Herself) started it all by gambling on Adam, then Eve, who can question its credibility and intention to be part and parcel of the human experience?

Some ThingS are Forever…“There are a few Things ThaT are forever, regardless of all else… one is wagering on sporTs.”

From the same guy that said phone cards would never work…

MiCKey CharleSAn attorney by training, Mickey’s background includes newspaper syndication, talk show host, panellist/moderator and chairperson at conferences worldwide. He is a pioneer in the audiotex industry, sports wire services and sports displayed on the Internet. He is President and CEO of The Sports Network, an international real-time sports wire service with customers throughout North America and Europe.

Supplement Sponsored by:

iGB Affi liate OCTOBER/NOVEMBER 2009

INSIGHT NOTES FROM THE FORUM FLOOR

34

AS OF LATE there has been a very unpleasant trend in the industry. More and more affi liate programs have tried to retroactively change the terms of their contracts with affi liates.

The terms and conditions set forth by affi liate programs are regarded as a binding contract. Affi liates are expected to abide by the rules or face expulsion from the program.

Somehow, some affi liate programs view this as a one way street – they consider themselves immune to the contract. This is not the case. Two parties in a contract both have to adhere to the terms unless both parties agree to change them.

Yes, most programs have a “catch-all clause” that states they are not bound by the contract and can change it at will, at anytime.

Now, this type of clause has been accepted online in certain types of “terms of usage” of various types of software. However, there is a precedent of courts tossing this clause aside when it comes to contracts involving the payment of money. Payment of money for services already performed (players sent) is an even stronger case against these catch-all clauses.

Think about it – I could create a site selling televisions for $100. After you send the money, I could just change my mind and ask for $200 or you don’t get the TV, and on top of that I get to keep the $100 you already paid.

Of course, business cannot be conducted on such a basis. No court in the world would determine that I have a right to add new conditions to a sale after it has been made.

Affi liate contracts work the same way. Assume I enter into a contract with program ‘X’ and commence to send players on the basis that I will be paid Y% for the life of the player. Program ‘X’ can’t suddenly change its mind without my consent and stop paying on players that were sent under the contract, or change the payment amount or anything

else we agreed on in our contract. This is called breach of contract and a serious matter in any court.

Beyond the legal ramifi cations, there is the very basic matter of trust. Are you going to trust that website selling TVs ever again? Of course not. Then how are affi liates supposed to trust a program that arbitrarily alters their contract? Who knows when it will seem advantageous to the program to change the contract again?

Affi liates are real people living in the real world and running real businesses. A contract between an affi liate program and an affi liate is a business to business binding agreement. Once the players are delivered, the program needs to pay as agreed – period.

Changing the contract going forward is another story; of course, that is not an issue. New affi liates will sign up under the new contract and will be fully informed about what the conditions are. They can plan their business model accordingly.

The worst example of an affi liate program breaching contract was Grand Prive – it just closed the affi liate program altogether and established a new one for one of its brands. While this happened quite some time ago, the issue has not yet died down, the affi liate forums still regularly talk about it and there will still be further repercussions for Grand Prive. Affi liates are not going to let this drop; it sets a terrible precedent and just cannot be tolerated.

Other affi liate programs should also be upset about this. This breach by Grand Prive has substantially reduced trust in all Microgaming powered programs – Microgaming always used to be presumed to take care of its licensee’s obligations. Here, the ball was dropped for what I estimate to be millions of dollars owed to affi liates over time. When Microgaming tries to re-enter the US market and get licensing, past debts will have to be cleared up. At the very least, Grand Prive will come to

regret this action – by then a very goodly sum will be owed to affi liates for their player bases.

In a working environment where you cannot trust that the contracts agreed on are actually kept, tolerance for minor issues (like payments being late for unforeseen causes) will likely be blown out of proportion and all programs will suffer. Affi liates become nervous and keep looking over their shoulder to see if another program is trying to pull a fast one. Lately, there have been a lot of terms and conditions changes and some of them quite unpalatable. So far, the last word has not been spoken on any of these, so I won’t name them here... yet.

This industry may be operating in a grey area but within the industry, proper business practices need to be established and enforced. It is impossible to sustain an industry where a contract is not a contract and a handshake is not a handshake. Without that, no trade is possible.

All the affi liate communities feel the same way about this and lately, there has been talk about forming an affi liate Union to take care of matters such as breach of contract. Here are some quotes from the owners of some of the major forums catering to affi liates and their positions in this, in no particular order, all are equally important: (see opposite page)

So you see, while affi liates are not unifi ed (yet?!) and splintered into many groups, they all agree on this issue. In my opinion, any program that decides to breach its contract is stepping into a hornet’s nest. I sure wouldn’t want all these communities angry at me....

Additionally, any casino planning to apply for certifi cation in the US once the laws have changed (and it sure looks like this will happen) will have to contend with charges levied against them by affi liates who are owed money according to contract law. I would imagine that this would have more consequences than just being told to pay up.

Regular columnist and founder of GamesandCasino.com, Dominique, heads to the forums to uncover the unifi ed stance taken by affi liates against recent contract breaches in the form of retroactive amends to terms and conditions.

THE TERMS OF THE CONTRACT

iGB Affi liate OCTOBER/NOVEMBER 2009 35

Disclaimer: The views expressed in this article in no way refl ect those of the publisher.

AFFILIATEGUARDDOG.COM constantly monitors changes to T&Cs and alerts us when these occur. It also has a list of programs and ratings for the T&Cs, from rogue to predatory to having somewhat unpalatable T&Cs such as negative carry-over.

Andrew from the Affi liate Guard Dog (AGD) states:

“Many affi liate programs have begun breaching their own contracts to increase profi tability at the expense of affi liates in the industry. AGD, with help from GPWA, the APCW, Casinomeister and especially players and affi liates has begun to affect some change in regards to retroactively applied terms (i.e., Contract Breach).

With the continued support of players, affi liates and organizations in the industry, our voice will be heard and programs will respond. It’s a testament to the collective efforts to see such success in this industry.”

CASINOMEISTER.COM is well known for its mediation efforts between players and casinos, but there also is an affi liate section, a newsletter for affi liates and it accepts complaints in its famous ‘pitch a bitch’ section.

Bryan from Casinomeister asserts:“Like I have explained before,

making retroactive changes should not be done at the expense of their business partners – the affi liates. I think it would be fair for programs to introduce new terms as a proposal to their current affi liates, and come to a mutual agreement. Any new affi liates coming on board would have to accept whatever the program dictates, but current affi liates should be given a choice. That’s my opinion on the whole subject.”

THE GPWA.ORG and its subsidiary, the APCW.org have published several YouTube segments ousting programs that breached contracts with their affi liates.

Michael from GPWA says:“Revenue share arrangements

between affi liate programs and affi liates have been marketed and

positioned by most programs as representing an annuity for the lifetime of referred players. When a program adopts this positioning then any unilateral change by the program that decreases the value of that annuity can be seen as breaching the trust the affi liate placed in the affi liate program. Successful business relationships depend on trust, and shattering trust shatters business relationships.”

CASINOAFFILIATEPROGRAMS.COM has been mediating individual cases and plans more informative program listings in the near future.

Warren from Casino Affi liate Programs (CAP) states:

“CAP strongly advises operators not to change terms and conditions on existing affi liate deals as this is the quickest way to lose competitive ground in a market where you must fi ght harder than ever to earn the business of a good affi liate. We’ve seen time and time again how this action spreads across the industry like wildfi re and can create huge repercussions for operators, regardless of their size or stature. CAP plans to label such operators in the near future so affi liates can make informed decisions of where they should send their business.”

POKERAFFLIATELISTINGS.COM is home to an outspoken community of poker affi liates and also caters to casino, sports, bingo and forex affi liates.

Jeremy from Poker Affi liate Listings explains:

“Would it be unethical and completely unacceptable if a mortgage company broke their agreements and arbitrarily changed the terms and interest rates of their clients? You better believe it would be! Then I wonder why lately a few casino and poker affi liate programs have taken it upon themselves to retroactively change the terms and conditions affi liates initially agreed upon. We affi liates need to take note of the

programs doing this and protect the integrity of our role in the industry by refusing to promote these shady operators.”

THE GAMBLINGINDUSTRYASSOCIATION.COM aims to bring together the Gambling Industry Stakeholders, one and all, and to create an environment of honesty and co-operation.

Nick from the Gambling Industry Association comments:

“Affi liates in general understand that changes need to be made occasionally, and as a whole, we have no desire to expect or infl ict unfair terms on our partner programs. Changes going forward are fi ne, however, infl icting retroactive terms changes on the folks that helped get you to where you are after years of promotion is DEAD WRONG!

“If declining profi ts are driving your program to cut affi liate expenses, then make them going forward and bite the bullet in support of your existing affi liates. It’s been a rough few years since UIEGA for us too.

“When the worm turns, and everyone is fi ghting for ‘top spots’ again, do you really want your program on the shit list?” (The entire statement is posted in the forum.)

THE GAMBLINGAFFILIATEPLACE.COM is a fairly new community that has grown very quickly in a short time.

Steve from the Gambling Affi liate Place comments:

“Retro changing T&Cs is about the dumbest thing I can think of a program doing because it immediately creates a loss of trust – what guarantee do we affi liates have that tomorrow they won’t change things again? And I don’t think I need to point out that the chances of them changing things so to give their partners more money is about the same as these programs getting a 100% effort promoting their establishments after they’ve proven they are capable and willing to change a deal that they’ve already given their word to honour.”

iGB Affi liate OCTOBER/NOVEMBER 2009

INSIGHT

36

THE FOREX MIGRATIONIt is no secret that the forex industry has been gaining massive momentum ever since its migration online. More recently still, the global fi nancial crisis has been particularly pivotal for forex trading both because of the exposure given to the fi nancial markets and because the forex market remained the only market to provide consistent profi t opportunities throughout the crisis. The big surprise, however, came from the gaming industry of all places, with huge numbers of consumers switching from online gaming to forex trading. Curiously enough, a large portion of these consumers turned out to be poker players. This may sound somewhat strange at fi rst, since poker is a huge and fl ourishing online industry with legions of loyal followers. However, if we take a closer look at the similarities between poker and forex trading, we will discover that this move makes perfect sense.

WHAT MAKES A POKER PLAYER?The game of poker is delicious mix of skill and luck that provides its enthusiasts with food for thought as well as a healthy dose of adrenaline to satisfy any risk appetite. Like forex trading, poker is simple to learn and diffi cult to perfect. The apparent simplicity of the game attracts many players simply looking for a quick profi t. Those who stick around, however, are the players who have a head for odds, the patience to calculate risk and profi t ratios, and the discipline to carry out long term strategy despite a few inevitable losses. If you had listed the above qualities to a forex buff he would tell you that you must be talking about a forex trader.

WHAT IS FOREX TRADING?As I’ve mentioned earlier, like the game of poker, the mechanics of the forex market are quite simple. The market revolves around eight major currencies which are bought and sold against each other.

To make a profi t all a trader has to fi gure out is which currency will go up or down relatively to which other currencies, and then buy or sell the currency accordingly. Sounds like a piece of cake, which would explain why forex trading is so popular. As you may have guessed already, it’s the fi guring out part that turns out to be rather tricky. There are various market forces to consider, micro and macro trends to spot, odds to calculate, risk and profi t ratios to estimate, strategies to adhere to, and what do you know – sounds like we’re back to talking about poker!

A QUESTION OF PRESTIGELet’s not get carried away however, poker and forex are anything but synonymous. This is where the difference between being an online gamer and being a fi nancial trader comes in. Mainly, it’s a question of prestige, and in this aspect, forex trading comes out on top hands down. As a whole, the online gaming industry suffers from terrible image problems, namely that it’s shady and full of scammers. That wouldn’t be so bad if this image remained at the superfi cial level, but as things stand today, it does have some very practical ramifi cations. These include major diffi culties in funding online gaming accounts and legal issues all over the world. Forex trading on the other hand is a perfectly legal and legitimate form of fi nancial trading with easily fundable accounts. In other words, being a poker player is not something you’d brag to your parents about whereas being a forex trader is something anyone would be happy to put on their resume. No wonder so many poker players are considering a career change.

WHY SWITCH NOW?The career change seems particularly appealing when it is so easy to make. Forex platforms like eToro now offer

guidance for forex beginners with visual trading interfaces and educational tools such as forex guides, video tutorials and demo modes with live market rates. Traditional forex platforms tend to crowd their interfaces with complex data fl ows and charts, which is why for a long time, forex trading seemed intimidating to novices who were thus reluctant to give it a try. With the new wave of forex technology, not only has the forex market been simplifi ed to accommodate newcomers from the gaming industry, but it also doesn’t cost an arm and a leg to get a forex account. If we take www.eToro.com, for example, it only takes $50 to set up an account.

WE’VE ONLY JUST BEGUNAs you can see, the opportunities that the forex market presents to poker players are often too good to pass up. Switching from poker to forex is not just a step up, but an easy step up, and taking advantage of that is just good sense. For an affi liate, referring a poker player to a forex provider is something of a dream come true, since not only is the poker player likely to be interested in forex, he’s also likely to be good at it which means that he will continue generating long term revenues. I personally believe that we’re only seeing the tip of the iceberg when it comes to poker players turning into forex traders, and that soon enough there will be no self respecting poker player without a forex trading account.

THE POKER PLAYER – WHY FOREX MAKES SENSEAs the choice of gaming verticals broadens for players, so too do the opportunities for affi liates. Recently, the forex market has been illuminating industry conversation and here, we look at the target demographic of this vibrant trading market.

“SOON ENOUGH THERE WILL BE NO SELF RESPECTING POKER PLAYER WITHOUT A FOREX TRADING ACCOUNT.”

JOHNATHAN ASSIA is the CEO and founder of eToro – the leading Forex trading platform that has managed to overcome the technological barrier preventing novice traders from entering the Forex market. Since its establishment, eToro has revolutionized the Forex industry and today it also holds the biggest Forex affi liates program: www.eToroPartners.com.

http://www.redreturns.net

iGB Affi liate OCTOBER/NOVEMBER 2009 39

INSIGHT

“A PESSIMIST”, Winston Churchill once noted, “sees the diffi culty in every opportunity; an optimist sees the opportunity in every diffi culty.” In gaming affi liate promotions, this can be taken as a truism.

With gaming affi liates beset on all sides by direct competition, seemingly baffl ing regulatory frameworks and the age-old series of contradictory “experts” giving you advice on getting SEO, it can be daunting to start out as an affi liate, and can be especially troublesome trying to refresh your existing promotions to increase the value of an established site.

So, what should affi liates do to fi nd their space, and where should you invest your time and effort to get your site where it needs to be: making money?

THE VERTICAL CLIMBBefore you identify your niche and open up your shiny new website, it seems to make sense that you should think about what your site is actually going to do. It doesn’t take an astrophysicist to realise that this boils down to earning hard cash. So, choose a niche you are happy with from the start. If you like horses, go with sportsbetting, if you have specialist casino experience, run a casino site, if you know bingo inside out, run a bingo site. Again, not rocket science.

Your site visitors are trawling through your site to get value, whether that be valuable information on why they should play on genericbingo.com, or what the pot sizes are like on anotherpokersite.com. If you’re not able to give them key information on your product, then they’re going to bounce off the site very quickly. Make sure you have a good grasp of the subject fi rst.

So, then, what verticals are open to gaming affi liates, and which ones look interesting for the future? There are affi liate programs opening up every day, in a multiplicity of languages, product types, and with a whole host of payout types. Putting it a little over-simply, this boils down to bingo, casino, poker, sportsbooks, and then a range of slightly less mainstream gaming products like backgammon, soft gaming or lotto sites.

GETTING IN WITH THE BIG BOYSCasino, poker and bingo products are often run by sites with huge brand equity. As a general rule of thumb, you can assume that people are going to be more prepared to sign up to brands they read about in the papers and see on the telly than those they know nothing about, especially when you consider that, ultimately, you’re asking them to spend real money. These higher-converting brands also tend to produce good player values because they have the staff to up-sell products once you’ve produced the sale. With some of the monolithic brands, though, you may have trouble fi nding a good contact in their 20-person affi liate team who is prepared to just talk to you about how things work. Ask other affi liates what their experiences with the operators have been, and make your decision based on the brand’s reputation for customer service to their affi liates.

DOWNSIZING: PROS AND CONSSmaller brands offering tried-and-tested products like poker or bingo are an interesting proposition for both new and old affi liates. They may offer you sizeable commissions, but, when you look closely, they may require your players to deposit a certain amount before paying you, or your visitors may have less trust in their products. If trust is a factor, the too-good-to-be-true CPA/rev share is probably that. If you haven’t heard of the brand before, and have a few doubts about the commissions you may or may not earn, then imagine how your players feel!

REGULATIONAlthough it makes for very, very dry reading, the 2005 Gambling Act is surprisingly clear on whether or not you can advertise a certain brand or product: “A person commits an offence if he advertises unlawful gambling”, if “arrangements for a licence, notice, permit or registration” as required under the Act “have not been completed”. In short, if you are a UK affi liate wishing to advertise an unlicensed brand, you are breaking the law.

Loosely speaking, if a site’s license is not from an ‘EEA State’, then you need to ask further questions from the merchant before launching your ads. Check the licensing details of the brand that you are choosing to run with. The likelihood is if it’s not proudly on display at the bottom of the homepage, there is some doubt. If you have doubts, then the likelihood is that that your site visitors will share them. Because your traffi c (and, of course, liberty) is precious, run due diligence checks if you’re working with a brand you’ve never heard of before, and run research on the major brands if you are new to that vertical.

THE BIG TICK-LISTPutting the heavy subject of licensing back into its very orderly box, we need to conclude by looking at what’s out there, and why you want to work in your vertical. Because I work in the bingo vertical, naturally, I would recommend this. However, on the general level, it’s sensible to run with what you feel most comfortable with.

If you have knowledge gaps in your chosen verticals, ring the affi liate managers at the sites you’re thinking of – they are experts in the fi eld and will help you make your decision. If they don’t want to talk to you, they don’t want your business. Someone else will! When you have chosen your vertical, and the right brands, decide what you will do to provide best value to your players. This is, of course, totally up to you.

Whatever approach you take, you can be sure that in an increasingly regulated market, dominated by brands rich in history, and with affi liate programmes that are recognised and respected, you will fi nd the right fi t for your niche. Keep your focus simple and keep your eyes on the prize and your hard work will hopefully be rewarded in sustainable commissions.

JONATHAN MANN is Affi liate Account Manager at Market Ace. affi liates@market-ace.com, www.market-ace.com.

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GOOGLE CHROME OS, as it will offi cially be called, is due for release some time in 2010 and will be aimed initially at netbooks with a view to moving on to desktop systems shortly after.

Instead of merely defending its top position in the world of search, Google is now totally on the offensive, striking what could be an extremely well aimed blow at Microsoft right where it hurts – its core product. There’s a huge difference between trying to gain a foothold in a new market and not really succeeding, to suddenly having to defend your core services from a company arguably as powerful (or potentially as powerful) as yourself, and this is the dilemma in which Microsoft now fi nds itself.

Since the mid 90s, Microsoft has dominated the desktop world with its fl agship operating systems and a plethora of accompanying applications including everything from browsers and games to productivity and offi ce applications.

Microsoft owns a bigger share of almost every market it is involved in than all of its competitors combined. So pervasive and consuming is its mere presence that when it enters a market, it’s usually time for everyone else to leave.

But there’s one area in which it has failed to dominate; the world of search. Despite its best efforts, it has been unable to take even second place. Following a recent re-branding with the release of Bing, its new search engine, it also recently announced a partnership with Yahoo! in an attempt to expand its search platform.

Microsoft has certainly had an interest in Yahoo! for some time, as previous, unsuccessful acquisition attempts would testify, so it’s unlikely that the new deal is simply a knee-jerk reaction to Google’s announcement despite how it may appear on the surface.

As part of the Microsoft-Yahoo! deal, Bing will power Yahoo! search; Yahoo! will retain control of how the search UI is presented, but it will be Bing that provides the results. Yahoo!’s share of the deal will involve selling search advertising, via the Microsoft AdCentre, for both fi rms. Additionally, Microsoft will recompense Yahoo! for traffi c generated by Yahoo!’s advertiser sites and affi liate network.

FROM BROWSER TO OSGoogle’s new OS will be built on the foundation of the three Ss – speed, simplicity and security; developers are aiming to create an operating system that loads and is ready to use in seconds. The interface will be designed to be very minimal and uncluttered so that it remains functional without interfering with usability.

However, the biggest innovation could be its security architecture, which is going to be a complete rewrite in terms of how other operating systems deal with viruses and malware. If these three principles sound familiar, it’s because they’re the same three principles that underpinned Google’s browser Chrome which was released at the tail-end of 2008.

The Chrome browser was created by

Google under the guise that the web had moved forward so far and so quickly since its early days that browsers had been playing a game of catch-up ever since it became mainstream. Google Chrome was to be a new browser, written from scratch that addressed the problems of the web today, not the problems of the web yesterday. It was a browser built from the opposite perspective of other browsers.

The release of Google Chrome was an exciting time; a brand new browser from a brand new browser vendor hit the scene amidst a maelstrom of hype and publicity and personally, I think Google did a great job; the browser is fast due to improvements in the way in which its JavaScript engine executes scripts, it’s secure thanks to its incognito mode and sand-boxed plug-in architecture, and it offers a clean and minimalist interface that is both friendly and intuitive. Some of these features have since been duplicated in other browsers, which I always believe to be a key marker of success.

Some people criticised Google because its Chrome browser didn’t instantly sweep aside all of its competitors as soon as it was launched. I’m not sure what the dissenters expected, but I think that the Chrome browser has been, and will continue to be, a resounding success.

Let’s take a moment to review some browser usage statistics; the stats for July 2009 on the W3Schools site (http://www.w3schools.com/browsers/browsers_stats.asp), show Chrome to have a market penetration of 6.5%, which sounds pretty low, but it’s double

Google’s plans for world domination moved up a gear in July when it was offi cially announced that the search giant would begin work on a new open-source operating system built on top of Linux.

iGB Affi liate OCTOBER/NOVEMBER 2009 41

the market share enjoyed by Apple’s Safari browser, a browser that comes preinstalled with Apple computers (and is, therefore, likely to be used by anyone that buys an Apple) and is already pretty well established. It’s also only a few percent behind Internet Explorer 8 (IE8) – Microsoft’s latest and greatest offering.

In under a year, Chrome has managed to do what Safari has been unable to do in approximately fi ve, and has almost caught up with the latest version of Microsoft’s browser. Remember that at one point in time, Microsoft enjoyed a 90% share of the browser market.

Month by month, usage with Chrome is increasing, and the browser market is already heavily saturated with well established players.

THE OS OF THE FUTURELike the Chrome browser, the Chrome OS will be written from the ground up. Google’s philosophy here is remarkably similar to that of the Chrome browser and is along the following lines: modern operating systems were designed and written in a world before the Internet existed. Solutions to the problems posed by the Internet have, therefore, all been bolt-on additions as opposed to built-in designs. Google is redesigning the OS from scratch and is building it with the Internet in mind. It’ll be the fi rst OS created in this way and it’ll be interesting to see if it works as well as the Chrome browser has.

First and foremost, the netbooks that will hit the stores with Google Chrome OS installed on them will be cheaper than those that come with Windows installed on them; Google Chrome will be free, Windows is not. It’s that simple. But also, as Google already provides online versions of offi ce software that rivals Microsoft offi ce, kitting out a netbook with productivity and ‘work-based’ software will also be much cheaper.

Speed is sure to play a big part in the success of the new OS and Google is already talking about start-up times of just seconds instead of the minutes that we expect from our Microsoft-based computers. Partly what has made Windows so popular is that it is all things

to all people. But this is also its downfall – many background applications and services are loaded when Windows starts, many of them are probably not needed by the average computer user so loading them during booting adds unnecessary waiting time.

This can be frustrating for the average user that doesn’t know how to disable the software and services that they don’t need, and as anyone that’s used Windows for longer than a couple of months can confi rm, the problem only gets worse as time passes. Chrome OS will be aimed at web users and as most Google software is web-based it doesn’t need to be all things to all people and shouldn’t need hundreds of services running. The whole architecture is bound to be different.

Perhaps the most important features could be those of security; it seems that every day brings a new exploit or a new virus targeting Windows. This results in an almost endless stream of updates, fi xes and patches which only adds to an already bloated system. If Chrome can overcome the modern challenges of security in a connected world, and given the Chrome browser’s successful security sandboxing architecture there’s no reason to suspect it won’t, this will also be a huge benefi t to consumers and, therefore, a massively enticing selling point.

THE EMPIRE STRIKES BACKSince Google’s OS bombshell, and aside from the partnership with Yahoo!, Microsoft has retaliated with the announcement that it will be web-enabling its Offi ce range so that customers can use Word, Excel and PowerPoint documents directly in their browser, with full online storage and collaboration facilities.

This will compete directly with Google Docs, and appears to be a total tit-for-tat strike back at Google. Whether it will be successful or not remains to be seen; certainly Google, which lifted the beta status from both Google Docs and Google Mail several months ago, is already years ahead of Microsoft in this respect.

There are also rumours of the imminent release of Bing 2.0 circulating,

news that leaked after excited Microsoft employees twittered messages about it during a recent Microsoft meeting. Bing 2.0 is supposedly an impressive update that brings Microsoft search to the same level as Google search. How true the rumours are and whether the new Bing will increase Microsoft’s slice of the search pie remains to be seen.

Weakening Google’s search dominance is not going to stop Google taking on Microsoft at the OS level, but it could be a good opportunity for Microsoft to prosper while Google is focused elsewhere.

A THIRD CONTENDERAs well as its obvious target of taking down Microsoft, is there anyone else that could potentially be in Google’s line of fi re? Apple, of course, already offer an alternative to Windows that is marketed as more secure, easier to use and more attractive than Windows. But it offers all of this at a price; Apple Macs tend to be a good deal more expensive than an identically ‘specced’ Windows machine and while some people are prepared to pay more for a superior product, the fact that more people don’t choose Apple is surely a sign that most people aren’t. With Google promising a secure, attractive and easy to use alternative to Windows that is free, Apple could have almost as much to worry about as Microsoft.

Until now, relations between Google and Apple have been clement, with Google products (Gmail) being installed by default on Apple’s iPhone, for example. Yet, the recent resignation of Eric Schmidt from Apple’s board of directors could potentially signal the beginnings of a distancing between two companies that are already in increasing competition.

An extremely popular recent spoof article on BBSpot which claimed Google had pulled Apple’s listing from its search results is indicative that the same tit-for-tat is expected between the two companies. What would more surprising would be if Apple and Microsoft teamed up against Google.

“GOOGLE IS NOW TOTALLY ON THE OFFENSIVE, STRIKING WHAT COULD BE AN EXTREMELY WELL AIMED BLOW AT MICROSOFT RIGHT WHERE IT HURTS – ITS CORE PRODUCT.”

DAN WELLMAN is a freelance writer and IT professional that lives and works in a thriving city on the south coast of England. He insists that he has other interests besides computers, and vows one day to prove this somehow.

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Rewarding good affi liates while weeding out the bad ones. by Matthew Castillo, Key Client Account Manager, NetRefer.

AFFILIATE RETENTIONMY PREVIOUS ARTICLE – Affi liate Marketing Retention Vs Acquisition Strategies (which you can fi nd on http://www.igbaffi liate.com) – focused on the importance of strategically choosing your affi liates using the Affi liate Value Model. This model enables affi liate managers to classify affi liates according to their potential and helps them to focus their energies on acquiring, growing and retaining valuable affi liates. This article will deal with the practical ways of categorizing affi liates and suggest ways of incentivizing good affi liates and weeding out the bad ones.

SET YOUR OBJECTIVESBefore starting to take an active role in proper affi liate management it is important to set clear SMART objectives. To be successful, objectives should be:

Specifi c – ● should specify what you want to achieve. Measurable – ● You should be able to measure how you’re progressing in meeting the objectives. Achievable – ● The objectives that are set must be achievable and attainable.Realistic – ● Consider the resources at hand and think whether you can realistically achieve goals.Time-Specifi c – ● Set a deadline for meeting objectives and review dates to monitor progress.

An example of such a goal could be: “to increase affi liate program profi tability by ten percent within six months from implementation with bi-monthly review”.

ANALYSE REWARD PLANS AND COMPOSITION OF NET REVENUEAt this stage it is important to benchmark your offer with that of your competitors. How do standard revenue share deals and CPA rewards compare with other competitors within the industry? Are the player promotions being offered to affi liates attracting the right players or are you mostly attracting bonus hunters?

This information is essential as one often realizes that due to high bonus payouts, Positive Revenues are turned into Negative Net Revenue as players do not carry on playing when their bonus runs out. This problem is especially

more relevant today as “No Negative Carry Over” has become an industry standard and hence, there is no recovery mechanism for affi liates.

You also need to review CPA deals and see whether these are based on stringent criteria that result from the company earning revenue from players. Ideally, CPA deals should be based on Positive Revenues from players and should be proportionate to the Net Revenue Criteria.

As an example: 125 CPA for players generating 75 Net Revenue in one month.

ANALYSE EXISTING AFFILIATESBefore devising any strategy aimed at improving the resource allocation and guaranteeing the best return on investment, one must be able to analyse the existing affi liates that the company already has. It is suggested that affi liates are split according to their current profi tability; high, medium, low (and even negative). The Pareto rule is usually adopted to select the top affi liates, however, in this industry, the 80:20 rule hasn’t yet proved to be so reliable. It is over-optimistic to say that 80% of profi ts are being generated by 20% of affi liates – it is rather more realistic to say that 95% of the profi ts are generated by 5% of affi liates. This creates a supplier dominated scenario, and the operator should pay extra attention to these top affi liates as losing one of them would have a large effect on the profi tability of the affi liate program.

CATERING FOR AFFILIATES IN DIFFERENT TIERSAfter splitting affi liates into different tiers, it is important to start planning strategies that aim to grow and retain good affi liates while at the same time improve or weed out bad ones. It is ideal to think of each tier as independent but it is just as important to devise strategies that help affi liates to move from one tier to the next.

Starting with the top tier affi liates, it is advisable that specifi c reward plans, which are agreed by both parties, are set up for the VIP affi liates. As with any business deal, it is essential that revenue targets are agreed in advance, in the same way that business targets are agreed internally, and special bonuses awarded

upon achieving and surpassing goals.When it comes to middle tier affi liates,

it is recommended that progressive deals are created, basing these on the average player profi tability. The higher the average profi tability, the higher the revenue percentage should be. Once the overall profi tability reaches a certain pre-agreed amount, affi liates should be moved to top tier status. It is important to note that certain middle tier affi liates will produce a constant return with no growth potential. These affi liates should be retained as cash cows.

In the case of low tier affi liates, these should be analysed in the same way as middle tier affi liates, hence creating revenue share percentages based on the average player profi tability. However, in the case of negative revenue generating affi liates, negative carry over plans should be considered. As an operator, you should retain the right to use such plans where affi liates deliver negative net revenues for a period of, for example, three consecutive months. Moreover, in cases where negative net revenues are prolonged, affi liate managers should consider closing off the affi liate account. Affi liates producing negative revenue not only reduce the overall profi tability of the program but also consume internal resources that add to overall costs – weeding out these affi liates would enable the affi liate manager to concentrate on more valuable affi liates.

CONCLUSIONKnowing your affi liates well is essential in enabling operators to develop different strategies to create more value for both the operator and those positively performing affi liates. Although painful, weeding out bad affi liates is essential for the long term success of the program.

One might say that the main aim of an affi liate program is to grow the affi liate base; weeding out affi liates will not help achieve this goal as these affi liates will sign up with other operators. This is exactly what you want. You don’t want affi liates who bring players who deliver constant negative net revenues so you should be more than happy to weed these out and even more happy to see them going to a competitor.

Cake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker AffiliatesCake Poker Affiliatesearn a piece of the action

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The influence an operator has on its software provider is usually determined by the strength of its brand presence – the bigger the operation (‘presence’) the more influence the operator will have.

Unfortunately for affiliates, however, this situation can be confusing and sometimes affiliates mistakenly consider the operator and the software provider as a single company when most of the time this is not the case.

Nevertheless, in some cases the software provider has no licensees and only powers its own brands.

Software providers operating on this model should be viewed as the same entity. When a software provider’s main focus is to distribute and license its games then usually its licensees are completely different companies.

OperaTOrs’ respOnsibiliTiesOperators usually have full control over all operational tasks of their business. Such tasks entail customer support, retention, transactions management, marketing and more. Some software providers do offer turnkey solutions to operators that include services that would usually be handled by the operator, however, most of the operators will still be completely responsible for their own marketing and affiliate programs. It is necessary for affiliates to understand the difference between the operator and software provider in order to properly evaluate their future/existing business partner.

This evaluation is crucial especially when an issue occurs. In some cases, one operator’s negative actions can affect other operators using the same software provider even though there

is no link between the two operators. It is important to be able to make the distinction if there is no direct link.

Nonetheless, it is a fact that both operators and software providers affect each other even if they are separate entities. The operators are generally in daily communication with their software providers. Typically, issues that affiliates send through to the operators relating to games or statistics are communicated directly to the software provider. On the other hand, issues with payments, creatives and commission are addressed directly by the operator.

The parameTers affiliaTes shOuld cOnsider when prOmOTing a brand(See figure 1)Affiliates should consider the following when deciding to promote any brand:1. The Reputation of the operation – it is recommended to do some research on the brand and its history.2. The Credibility of the brand.3. Affiliate Program – have you worked with this program in the past? Do they pay on time? Do they respond in a timely manner? Are the stats real time?4. Conversion – what is the conversion rate? Compare it to other brands you promote to evaluate which brands are the most worthwhile sending your traffic to.5. Player Value – very important to keep in mind that although conversion is crucial to an affiliate’s cause, it is worth less if the operations retention is lacking. It is essential to check your stats religiously to ensure that the operations you promote are maximizing the revenue on every player you send.6. The Software – which software are

they using? It is important to know the product offering, however, it is the operators that are responsible for the credibility and integrity of their operations regardless of the software platforms they choose to use.

influence On The sOfTware prOviderAn operator is responsible in ensuring that the players and affiliates are treated properly. It is essential to understand the brand/operation has the strength and ability to maximize the software it uses.

Currently, we find that more operations have integrated several casino/bingo/poker software platforms into one unique brand in order to optimize their operation in providing variety to both their affiliates and players.

For example:Winward Casino has taken a license

from three different casino software providers:

TopGame●●

Parlay●●

NetEnt●●

The intention is to maximize its brand and to ensure a variety of up-to-date games. Currently, it licenses its games from two of those providers.

It can be argued as to who is responsible for the conversion of the brand; the operator or the software provider?

Personally, I believe that conversion is primarily related to the operation. However, the software platform – its games, functionalities and frequent upgrades – will play a large part in determining whether the player will stay with a brand or not.

A closer look at the influence and relationship between operator and software provider in the affiliate decision making process.

Developing Influence

iGB Affiliate october/november 2009 45

As an operator you can provide the best service, however, if the software is not attractive enough or not up-to-date and ‘bug free’, then players will inevitably drop off. Having said that, all operators will experience glitches and bugs from time to

time but it is the way a software provider handles these so called ‘bugs’ that makes a difference in the eyes of the industry. The professional manner and clarity that the software platform utilizes when dealing with such issues will draw the

line between the top software providers in the market and the rest.

Affiliates must make their decision to promote an operation based on many factors besides the software platform it uses alone. The operator is the one who will/will not honour the affiliate’s commission/deals. It is the operator’s responsibility to convert, retain and provide good customer service to its clientele. And it is the software provider’s responsibility to provide the operator with the necessary tools to ensure an excellent gaming experience for its customers.

conclusionIn today’s world, operators have the choice to select particular, appropriate software or to run multi-software platforms along their brands. However, as far as the affiliate’s decision making process is concerned on which brands to market, the affiliate needs to make an educated decision on the operator involved by having a crystal clear understanding of the difference between an operator and a software provider as well as being able to distinguish the key parameters that will make one operation a greater success than another, even though they use the exact same software platform.

“From an aFFiliate’s point oF view, the critical relationship is with the operation and not the soFtware provider For this is where the reputation oF the operation and their aFFiliate program is taking place.”

software

affiliate programme

brand reputation

player value

brandcredibility conversion

commission

Figure 1

Malci is Affiliates and Marketing Director at Revenue Giants. Malci@revenuegiants.com, www.revenuegiants.com.

In order to gain some insight into the perspective of the software platforms, I have interviewed James King of the Business Development team, TopGame platform.

What influence do operators have on TopGame software development?“The operator has a significant influence on TopGame software especially because it is relatively new. We are eager for and encourage feedback from all our operators. We view this relationship as vital to our success as a software provider. We continually upgrade our systems in any way that will benefit our operators to optimize their businesses. Our goal is to become one of the greatest casino software providers and we know that the only way to do this is by listening to the customers, i.e. our operators.”

What should affiliates do when they have concerns with one of your operators?“It depends on the issue and level of concern. Most of the issues that affiliates have should be easily solved by the operator. We do not have control over how the operators handle their issues. It is the operator’s full responsibility to ensure that its affiliates are treated fairly. The operator is responsible for paying its affiliates, deciding on the commission structure and providing creatives. TopGame is responsible for delivering the statistics and ensuring an excellent gaming experience for players that choose their operators, but if an issue cannot be solved with an operator we encourage the affiliate to contact us directly so we can take the matter further.”

if affiliates were unhappy with one TopGame brand should, would that negativity transfer through to the other brands?“I would certainly advise affiliates to work with operators that honour their deals and provide a good service to their affiliates. That said, each operator is a competitor. Thus, I can clearly say that if affiliates are not happy with one of our operators, then this does not necessarily mean they will have the same bad experience with another and vice versa.”

iGB Affiliate october/november 2009 47

But perhaps prosecutors can stretch the law a little and say the payment processors were aiding and abetting the operators.

The problem is the money clearly did not belong to the operators, only to the players. And the players were not violating this federal law, because they were not violating New York state law.

The IGBA defines “illegal gambling business” as “a gambling business which is a violation of the law of a State or political subdivision in which it is conducted…”

Criminal law in New York, as in virtually all the states of the US, requires that there be a statute passed by the State Legislature and signed by the Governor. New York simply does not have any such law making it a crime to make bets at poker.

One of the payment processors, Account Services Corporation, has gone even further. It filed a Motion for Return of Property in federal court in Los Angeles on July 10, claiming that poker is not illegal – because it is not gambling. This attacks both the idea that there was a violation of state anti-gambling laws, and argues that Congress simply did not intend to cover games of skill, like poker.

The IGBA defines “gambling” as

“including but not limited to pool-selling, bookmaking, maintaining slot machines, roulette wheels or dice tables, and conducting lotteries, policy, bolita or numbers games or selling chances therein.”

The payment processor says the list includes only forms of gambling that are almost all banking games, where players bet against the house, and all are predominantly chance. Poker does not fit on that list.

The hearing is set for August 14, 2009, but it is very doubtful that a judge is going to decide such a major question as to whether poker is predominantly a game of skill without a full trial.

In fact, it is more likely that he or she will throw out at least part of the prosecutors’ seizures for failing to follow the most basic rules of criminal procedure: some of the money was seized without the DoJ even trying first to get a warrant from a court. And no civil or criminal charges have been filed against anyone.

What was the rush? Is the DoJ going to argue that the payment processors and thousands of players, most of whom had been playing for years, were going to run off with their money and hide?

What was the emergency? In fact, exactly what law justifies the federal government

seizing money from people who are not violating any federal or state law?

Why go after the one group involved in Internet gambling this is not violating any law – poker players in New York? Perhaps it was just a rogue prosecutor. Or maybe the New York office wanted to send a message, to counter rumors that it had disbanded its Internet gambling task-force.

It is even remotely possible that the DoJ knew how silly it was to seize the money of poker players. And it wanted to send the message to Congress to pass the pending bills that would set up a federal licensing system for Internet poker.

© Copyright 2009. Professor I Nelson Rose is recognized as one of the world’s leading authorities on gambling law and is a consultant and expert witness for governments and industry. His latest books, INTERNET GAMING LAW (2nd edition just published), BLACKJACK AND THE LAW and GAMING LAW: CASES AND MATERIALS, are available through his website, www.GAMBLINGANDTHELAW.com.© Copyright 8-09, all rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, www.GAMBLINGANDTHELAW.com

“such a theory (the statute) Would make every buyer of illegal drugs guilty of selling.”

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feature

The US DeparTmenT of JUSTice (“DoJ”) recently made an astonishingly bad bet of $34 million.

The size of the cash involved isn’t the issue – $34 million is peanuts for the federal government. The stakes are much bigger: the DoJ is trying to kill Internet poker.

The problem for prosecutors is that they are betting everything on a very weak hand. The DoJ expects to win, and scare Americans out of playing poker online. But the US Attorneys responsible for the recent seizure of poker players’ money don’t seem to realize that they will probably lose this bet. And when they do, the decision will be interpreted by players as declaring that Internet poker is legal.

The action was brought by the US Attorney for the Southern District of New York – New York City. Rumors in the legal community say the DoJ in Washington DC did not approve or even know that this was going to happen. Perhaps even the US Attorney himself did not realize the significance of what an assistant in his office was about to do. That seems logical, since the legal theories behind the action are so weak, and the Obama Administration has a lot more important legal concerns than going after online poker players.

For that is exactly what the DoJ has done: it seized more than $34 million of payments belonging to about

27,000 poker players held at banks like Citygroup and Wells Fargo, primarily in California and New York.

It’s important to understand just how horribly weak the DoJ’s case is. The major federal statute normally used against online betting operators is the Wire Act. The DoJ believes it covers all forms of gambling. But some courts have held that the Wire Act only applies to bets on sports events and races. So the government did not mention the Wire Act in its seizure documents or Grand Jury Subpoena. It gave up its major weapon.

Instead, the DoJ cited as authority for the seizure 18 USC section 1955, the Illegal Gambling Business Act (“IGBA”), added as part of the Organized Crime Control Act, and 18 USC section 1956, Money Laundering. Just looking at the names of the statutes gives you an idea of the problem.

Every federal anti-gambling law is limited on its face to people who are in the business of gambling. There is no federal law making it a crime to merely make bets.

Some states do outlaw betting. But half the states do not. In New York itself, for example, a person can make a bet by

phone with an illegal bookie in that state or another and would not be breaking the law. The bookie would be, of course. But here it was the players’ money that was seized.

The IGBA makes it a federal felony for a group of people to violate state anti-gambling laws. Here’s the heart of the statute: “Whoever conducts, finances, manages, supervises, directs or owns all or part of an illegal gambling business shall be fined… or imprisoned… or both.”

The statute clearly does not apply to players. And there is no way to try and make it do so, by, for example, claiming the players were aiding and abetting the operators. Such a theory would make every buyer of illegal drugs guilty of selling. In the law, this is called “bootstrapping”, as in trying to pick yourself up by your own bootstraps, and it has been thoroughly rejected. Congress carefully made it a crime to be in the gambling business, and chose not to make it a crime to merely make a bet.

It is even hard to see how the IGBA could apply to owners of the bank accounts seized, who were neither players nor operators. They were payment processors. They were not in the business of gambling.

Gaming law expert and renowned industry commentator, professor i nelson rose, reports on online poker’s continuing battle against the US Department of Justice, to provide some valuable insight for those of you waiting on the reopening of the US market with baited breath.

“Why go after the one group involved in internet gambling this is not violating any laW – poker players in neW york?”

iGB Affiliate october/november 2009 47

But perhaps prosecutors can stretch the law a little and say the payment processors were aiding and abetting the operators.

The problem is the money clearly did not belong to the operators, only to the players. And the players were not violating this federal law, because they were not violating New York state law.

The IGBA defines “illegal gambling business” as “a gambling business which is a violation of the law of a State or political subdivision in which it is conducted…”

Criminal law in New York, as in virtually all the states of the US, requires that there be a statute passed by the State Legislature and signed by the Governor. New York simply does not have any such law making it a crime to make bets at poker.

One of the payment processors, Account Services Corporation, has gone even further. It filed a Motion for Return of Property in federal court in Los Angeles on July 10, claiming that poker is not illegal – because it is not gambling. This attacks both the idea that there was a violation of state anti-gambling laws, and argues that Congress simply did not intend to cover games of skill, like poker.

The IGBA defines “gambling” as

“including but not limited to pool-selling, bookmaking, maintaining slot machines, roulette wheels or dice tables, and conducting lotteries, policy, bolita or numbers games or selling chances therein.”

The payment processor says the list includes only forms of gambling that are almost all banking games, where players bet against the house, and all are predominantly chance. Poker does not fit on that list.

The hearing is set for August 14, 2009, but it is very doubtful that a judge is going to decide such a major question as to whether poker is predominantly a game of skill without a full trial.

In fact, it is more likely that he or she will throw out at least part of the prosecutors’ seizures for failing to follow the most basic rules of criminal procedure: some of the money was seized without the DoJ even trying first to get a warrant from a court. And no civil or criminal charges have been filed against anyone.

What was the rush? Is the DoJ going to argue that the payment processors and thousands of players, most of whom had been playing for years, were going to run off with their money and hide?

What was the emergency? In fact, exactly what law justifies the federal government

seizing money from people who are not violating any federal or state law?

Why go after the one group involved in Internet gambling this is not violating any law – poker players in New York? Perhaps it was just a rogue prosecutor. Or maybe the New York office wanted to send a message, to counter rumors that it had disbanded its Internet gambling task-force.

It is even remotely possible that the DoJ knew how silly it was to seize the money of poker players. And it wanted to send the message to Congress to pass the pending bills that would set up a federal licensing system for Internet poker.

© Copyright 2009. Professor I Nelson Rose is recognized as one of the world’s leading authorities on gambling law and is a consultant and expert witness for governments and industry. His latest books, INTERNET GAMING LAW (2nd edition just published), BLACKJACK AND THE LAW and GAMING LAW: CASES AND MATERIALS, are available through his website, www.GAMBLINGANDTHELAW.com.© Copyright 8-09, all rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, www.GAMBLINGANDTHELAW.com

“such a theory (the statute) Would make every buyer of illegal drugs guilty of selling.”

iGB Affi liate OCTOBER/NOVEMBER 200948

Bob Rains Meets Patrik Selin, the man charged with heading up the new Bodog Network.

THE NETWORK CONNECTOR

PATRIK SELIN IS no rookie to poker. In addition to several impressive tournament fi nishes, winning the UK Open and two WSOP cashes, he has been the man behind the success of more than one poker network. It should come as no surprise that he has been selected to head up Bodog’s newest initiative, the Bodog Network. I got a chance to sit down with Patrik in Budapest to ask a few questions about the network, and why this is the direction for Bodog now. As a guy who’s both worked for operators and been an affi liate, I have mixed feelings about networks, but found Patrik’s take on the network poker space refreshing and well thought out.

Bob Rains (BR): Firstly, tell us a little bit about yourself. Patrik Selin (PS): I have been in the Internet industry for ten years and in the online gaming industry for seven. I was CEO and President for Ongame, when Ongame ran Pokerroom.com and launched Ongame Network, which at the time was the world’s largest poker network. After that, I ran Gnuf and Betway for three years, so I also have experience from the operator side of a poker network. On a private note, I have a genuine interest in playing poker, both online and live.

BR: When were you fi rst approached by Bodog to start the Bodog Network?PS: It was the other way around: I saw the opportunity and approached Calvin Ayre and BodogBrand with the idea. If you look at our current poker product and the player liquidity level of the three existing Bodog brand licensees and add my expertise in running a poker network, and some unique solutions, we have a strong combination.

BR: What makes the Bodog Network different from other popular poker networks?PS: We have a unique rake distribution formula which will make depositing players much more valuable for operators than today. This has a number of advantages for all, both players and operators. First of all, this will incentivize operators to bring in this group of players, and for the players the entertainment factor will play a greater roll.

We will also allow our operators to protect their customer databases in a unique way.

BR: Why now, especially considering all of the consolidation going on in online poker?PS: Everyone talks about consolidation, but we are not seeing so much of it. Ten years ago, Paradise Poker had over 80 percent market share, some years ago Party Poker had over 50 percent market share and today, PokerStars has around 35 percent market share. So the trend is actually opposite. Today there are 37 poker software providers/companies. In the long run we believe that there will be consolidation but this is still a young industry. Also, consolidation is not necessarily a good thing for all operators on the other poker networks. I defi nitely see a window of opportunity for Bodog Network.

BR: What did the audiences in Budapest and Copenhagen think about the announcement?PS: The reaction was overwhelming. I am now even more convinced that the strength of the Bodog brand is applicable not only to B2C, but to a B2B business like Bodog Network. We have been approached by a large number of potential poker operators for the network.

BR: What in your opinion are the most important factors to consider for someone interested in getting into the white label game at this point in time?PS: You need a lot of things: expertise, experience, a good product, credibility, and so on but the most important thing is a big load of cash. I wouldn’t say it’s easy to enter this growing market but opportunities do exist.

BR: Everyone knows Bodog understands marketing – will potential buyers in the Bodog network be able to benefi t from Bodog’s years of experience?PS: Yes, they will benefi t from a great poker product, and from some backend tools that we will provide to be able to do really cool internal marketing. But for the external B2C marketing, they will have to fi nd their own way of doing marketing. We are only interested in medium to large sized operators who are willing to invest in marketing themselves.

BR: Lastly, who should be worried about Bodog’s entrance into this market?PS: Our goal is to reach top-three for player liquidity – anyone sharing the same goal should be worried, and that includes a couple of pure B2C poker sites…

CLOSING THOUGHTS…I think we can really look forward to a new player in the white label space mixing it up and keeping the big networks in check. Bodog has a long history of fantastic branding, and a keen understanding of marketing that, in my opinion, is really missing in this space. I hope we see some big improvements in utility and functionality of network software as a result of the increased competition from the Bodog Network.

INTERVIEW

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iGB Affiliate OCTOBER/NOVEMBER 2009

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So here I am, sitting down and thinking that many of us have had a conference fuelled few weeks. Hungary for the Budapest Affiliate Conference, Denmark with the European iGaming Expo in Copenhagen and then onto London for Adtech.

Two gaming specific conferences, one tailored for affiliates and their relationships with operators, one targeted at the operators and consultants and one that is dedicated to the lifeblood of both – traffic!

All the conferences were different but similar in many ways. Every one declared that “times were tough” but in all honesty no matter what the marketplace is like, who has ever said, “yes, business is great and we want to pay you more because of it”? When it comes to negotiation times are, and have always been, tougher than tough.

But what were the key topics spoken about on the floor, in the pub and over dinner?

Of course, industry consolidation was still the buzzword buoyed by the bidding frenzy won by PartyGaming for Cashcade and both 888 and Party telling the market that there will be more M&A action to come.

So the operators are buying each other which must surely mean less choice for the affiliates, if not the punters, do you think affiliates will consolidate, thereby giving them more negotiating power with the operators?

Don’t forget, the elephant in the room had to be the world’s largest land based casino, Harrah’s, entering into an agreement with 888’s independent B2B arm, Dragonfish. When someone as large and influential in American gambling circles as Harrah’s finally signs a deal for online gaming, you have to sit up and take notice.

Can we take this as the strongest indicator yet that America truly is moving on from the dark days since that fateful Friday night when “that law” was sold on the basis of ship safety?

‘CEO1’ says media is the future. ‘CEO2’ agrees. ‘CEO3’ says the others are talking rubbish, but what can’t be ignored is that

the large media businesses are out there and whether they decide to use their brand to build or partner in a gaming product doesn’t really matter. What does matter is that for them, gaming definitely equals revenue. Whether it be brand licences for poker or advertising bucks for casino, the media players are going to earn a fortune. Take a look at the vast sums Google has earned since it re-launched gambling advertising in select countries. We know Google isn’t just taking on Microsoft in the desktop space on two fronts with an operating system and core office applications, but also Apple in the phone wars.

Who do YOU think would win if Google

turned their attention to 888, Party or Stars in

their launch of ‘GoogPoker’?

So what do we know?

Operators are buying each other.●●

The American market is changing… ●●

AGAIN!Media businesses may (or may not be) ●●

the new Bush Administration for our industry.And no matter where you turn, every ●●

traffic broker, marketing organisation or potential deliverer of business has the highest quality, lowest cost, best converting offering since bread was first sliced… at least if you pay in advance and accept no guarantees. That’s not to say that the operators are any better, as their products are “honestly” the best in the market, convert a hundred percent better than their competitors and you truly will earn more with them if you undertake a revenue share deal and promise to always give them top billing!

So to summarise what WAS spoken about; not much has changed. It’s the same old news with the same old people telling it!

What did strike me though was what WASN’T spoken about.

Where are the new and innovative ways ●●

of driving traffic?What are the new and innovative ways ●●

of increasing conversions?Who will be the aggregator that the small ●●

to medium affiliates partner with to give them a voice let alone more money in their pocket?

So what are the answers to these burning questions? Who will deliver the answer for affiliates in our industry? Who will stop our business having the lowest level of unique visitor to customer conversion percentage compared to every other industry out there? Who will help in acquiring targeted traffic in affordable, sensible and scalable ways?

Let me just suggest to you that if you want gaming SEO yet don’t have a gaming SEO budget, or if you have had enough of that terrible conversion rate and yearn for a whole percentage point instead of the points therein, or you realise that for you to run your business effectively that it isn’t search engines, it isn’t conversion, it isn’t the CPA or Rev Share deal that you need but the combination between them all to put more bucks in YOUR pocket, then watch this space – Strange Logic might just have something interesting happening soon…

Jason Duke, Director, Strange Logic, is a leader obsessed with search engines and the algorithms that power them. His enquiring and exploring mind linked with a drive to see things down creates a culture that constantly asks, “What if?”, “Where to next?” and “I know how!” He is focused at managing a business, with an emphasis on marketing in a holistic manner to deliver the pinnacle of rewards on and offline. He is very well known and respected within the blogosphere and the search communities as a worldwide search leader and is regularly quoted in public, private, print, radio, TV and the web, as well as being a public speaker regarding search matters. Organisations including the BBC, Forbes, News International, multiple gaming and gambling businesses as well as the British Government have all been advised by him.

BUDAPEST

Jason Duke reflects on the end of summer conference season and the topics charging the conversations in and around the floor sessions, and those that were curious by their absence.

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CONSOLIDATE, OPTIMIZE, MAXIMIZE:

AFFILIATES AND MERCHANTS have one thing in common when it comes to affi liate marketing and that is ROI. Affi liates want to make sure they optimize their campaigns to maximize their return and merchants want to secure the best placement and maintain a low acquisition cost. What makes these transactions transparent is their affi liate software. Affi liate software is capable of tracking the entire life cycle of a player from their fi rst click to their last wager.

Tension can often result on both sides of the affi liate-merchant relationship about the true value of affi liate marketing. Affi liates who can secure quality players for merchants want to negotiate better rates and merchants sometimes feel that they can obtain better results from other forms of marketing and media buying. These different perceptions about the worth of affi liate marketing are often created because results are not compared in the same way and as a consequence, both parties may end up comparing ‘apples’ to ‘oranges’.

Affi liate software is in a unique position to allow the comparison of ‘apples with apples’ and ‘oranges with oranges’. This is made possible because affi liate software is capable of consolidating campaigns from across different channels as it monitors the entire acquisition process.

Through supporting and tracking different campaigns and offering comparative reports, the right affi liate software will provide the intelligence needed to consolidate and optimize campaigns across different channels, maximize their return and determine their true value.

CONSOLIDATEConsolidating campaigns is a marketer’s dream come true; under one platform, a user gets comprehensive analytics on the performance of campaigns across different marketing channels and gains time on campaign administration. A fl exible affi liate platform can accommodate the consolidation of multiple campaigns by supporting different marketing models and reporting on campaign KPIs. This fl exibility will extend to tracking online and offl ine campaigns, supporting different commission structures (CPC, Rev Share, CPA and hybrid structures), and custom language settings for targeting industries and language markets.

CAMPAIGN CLUSTERING FOR MERCHANTSClustering campaigns under a single platform can provide comprehensive insight into which acquisition channels are most suited for different products/

promotions. Two essential features affi liate software must have to effectively manage clustered campaigns are campaign groups and automated group management.

Campaign groups allow proactive management of campaigns by assigning affi liates and media buys to groups with preset commission structures and then monitor the results of these specifi c groups that are created. Automated management of these groups then takes the guess work out of managing multiple campaigns by (1) expiring campaigns alongside their promotions, (2) automatically applying replacement campaigns to all affi liates in that group, and (3) identifying which campaigns are working because they are compared through the same metrics and make decisions accordingly.

CAMPAIGN CLUSTERING FOR AFFILIATESAffi liates who have different campaigns running for one merchant can also consolidate their marketing efforts through the affi liate program by setting up custom tracking for all the places that they promote a particular brand. In this case, affi liates have two choices: setting up site IDs or using the ACID feature. For affi liates who use the site ID, the software automatically sets up an ID for each

GETTING EVERY LAST DROP OUT OF YOUR AFFILIATE SOFTWARE

iGB Affi liate OCTOBER/NOVEMBER 2009 53

campaign – this ID then becomes available when affi liates obtain their creative for that campaign. Affi liates who need additional customization for their tracking can set up their tracking using the ACID tool – this tool is ideally suited for PPC. As a result, affi liates can (1) see how the merchant is converting across their network of sites and/or (2) compare how their email, PPC or media placement is converting and against their websites, and (3) use this data to communicate and negotiate with their affi liate manager on the resources needed to manage their campaign through the affi liate’s sites and promotional methods.

CUSTOM LANGUAGE SETTINGS FOR MERCHANTS AND AFFILIATESWith many merchants and affi liates operating in different regions of the world it becomes essential to divide the responsibility of markets across an operator’s team. As such, affi liate software can be utilized to divide regions and responsibilities across teams. As a result, campaigns from the Spanish market can then be established and compared with English market campaigns or vice versa or with any other regions merchants may be working with.

In addition, affi liates targeting specifi c markets like the Spanish market should be supported by a Spanish language interface. This then assists regional managers in promoting the product to affi liates and developing successful relationships on a regional basis. Furthermore, affi liates can take advantage of this customization established by the merchant to manage the different creatives available for each language they promote and track that performance. Affi liates can also look to target their conversions in specifi c regions by taking advantage of geo-targeting banners available in the banner manager. Therefore, the ability to customize the language settings of an affi liate program is essential to monitoring campaigns that target different markets and allows the performance to be identifi ed.

OPTIMIZEConsolidating campaigns under a single

platform allows optimization of campaigns by testing them in controlled environments before rolling them out across other channels. For example, campaigns can be tested in a controlled, performance-based environment (e.g. pay only for results), allowing traffi c and conversions to be monitored. As a result, the best performing promotions can be identifi ed for a brand’s products in target markets.

There are four kinds of intelligence reporting that affi liate software should provide in order to optimize your campaigns: traffi c, earnings, creatives and period comparison. Together, these reports provide invaluable metrics on acquisition and ROI.

Traffi c and earning reports provide metrics to scrutinize and timeframes to monitor the two infl uences on KPIs – such as creatives and landing pages. With this information comparisons can be made to compare the conversion success at the click, registration, and conversion level. This depth of intelligence gives insight into the full cycle of a customer acquisition. Therefore, results can be analyzed to identify the strengths and weaknesses in the acquisition process.

If your software allows you to fi lter data by creative it will provide insight into what actually resonates with the target market – i.e. what banners users actually click on. By comparing banners that convert to those that don’t, users gain intelligence on what banners to drop and keep respectively, and what elements to incorporate into the development of future creatives. Consequently, when those creatives are rolled out across other channels, affi liates will be maximizing an operator’s chance of getting not just impressions and clicks, but actual conversions.

MAXIMIZEOnce individual campaigns have been optimized, the right affi liate software can also help maximize the return of all your campaigns on an ongoing basis. A period comparison overview will provide a snapshot of how campaign performance fl uctuates by showing you the ratio of change – i.e. by what percentage

conversions increased or decreased in response to a change in variable. This ratio can be compared against other marketing channels and performance within a channel to determine whether the change in conversions was spurious or, in fact, caused by a change in banner or landing page.

Comparative data is the most powerful data for monitoring campaign performance – it allows users to make informed decisions. This all comes to naught if it becomes cumbersome for the user to obtain. As a result, merchants and affi liates can maximize the time they spend on obtaining and managing this data by customizing their data experience. This can be done in two ways: reviewing data provided by login dashboards and utilizing API reporting for their preferred reports.

CREATE YOUR SOFTWARE EXPERIENCE

By managing all marketing campaigns through a single platform you can save administration time and the ROI of your campaigns can be maximized. This maximization is created by accessing comprehensive analytics on cross-channel campaigns and optimizing them accordingly. Affi liate software is uniquely positioned to consolidate campaigns from across different channels because it can track the entire acquisition process. By supporting and tracking different performance criteria and offering comparative reports, the right affi liate software will provide the intelligence needed to communicate with and manage cross-channel partners (advertisers, affi liates, etc) allowing ‘apples to be compared with apples’ and ‘oranges with oranges’.

NICKY SENYARD is CEO of Income Access, overseeing their independent iGaming affi liate network, market-leading affi liate software and expert affi liate management services.

“AFFILIATE SOFTWARE IS IN A UNIQUE POSITION TO ALLOW THE COMPARISON OF ‘APPLES WITH APPLES’ AND ‘ORANGES WITH ORANGES’.”

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IT IS WELL KNOWN that most people would rather visit the dentist or pay taxes than speak publicly. Perhaps this fear of public embarrassment is why so many business professionals are nervous about hosting a webinar.

In overcoming this ‘webinar worry’, companies will be embracing something that has emerged as an effective communication tool. Webinars provide a unique opportunity to engage clients on a one-to-one basis, regardless of audience size. Using the right materials and presentation techniques, you can interact with each individual participant, instead of addressing a large, faceless group of strangers.

Here are a few tips that can help you stop worrying and run a successful webinar.

PRE-EVENT STAGE1. TimingPlan on hosting your webinar at least twice to accommodate different time zones.

Avoid Mondays and Fridays, as these are peak meetings days and webinar attendance is, therefore, often lower. The best times are 10am and 2pm, to make sure your guests are at their desks and available before or after lunch.

Send a reminder of the webinar and time one week prior to the event and a second reminder the day before.2. PlanningThe initial planning stage should start about four weeks before the actual event. At this point focus on these primary activities: development of a compelling topic, identifi cation of the presenters and target audience, and the promotional outreach campaign. 3. ContentDevelop interesting, engaging and educational content. This is probably the most important key to your webinar’s success. If your material is boring or

doesn’t bring relevant value, you’ll lose your guests – and their sales.

Invite an industry expert, customer or partner to present a case study or conduct an interview during your webinar. This will stimulate more interest and drive participation. A well-known subject matter expert can double or even triple your attendance.

Finally, prepare a Q&A session to encourage your guests’ participation. 4. RehearsalPractice makes the difference. Webinars aren’t diffi cult, but they are different from running a meeting or a conference call. Take a couple of test runs of your presentation, especially if you’ve never previously hosted one.

This gives you the opportunity to fi ne tune your material and catch any potential problems with the webcasting solution you’re using.5. Develop survey questionsPrepare questions to ask during registration. This gives you great insight into your audience. Use this information to tailor your presentation to your audience’s needs and to score the qualifi cation level of your participants. In addition, as people exit the webinar ask them a short series of additional follow-up questions to further qualify them. Here are a few suggestions:

What did you like most about this presentation?

How likely are you to use this service or product?

Would you like a sales rep to contact you?

THE DAY OF THE WEBINAR6. Technology Make sure you’re in a quiet place and use the telephone handset. Handsets normally have good quality microphones, and the near-fi eld effect of the microphone means that background noises are kept

to a minimum. Using the “hands free” option or conference phones can result in low-volume voices that sound compressed, picking up background noise or an echo from the room.

And don’t forget to turn off your IM, cell phone, PDAs, email and other possible distractions.7. Join earlyJoin your webinar early and verify that all links and presentations are working. Show a “welcome” slide that says your meeting will be starting shortly. Before your meeting begins, provide a quick review of housekeeping items, such as how to use the chat feature or how the Q&A session will be handled. Have speakers identify themselves when speaking, and be sure to add a photo and bio of the speakers. 8. Record your seminarPost the webinar on your website for future viewing. Build a reference library of past webinars for your customers and prospects to view when they have time – webinar content and Q&As can also be useful for training employees. 9. Send follow-up emails to all registrants Build the relationship with those viewing your content by sending them a summary of the Q&A session, additional information, a link to the archived webinar or just a simple email thanking them for participating.

To sum up, the best way to prevent ‘webinar worry’ is to prepare and rehearse. Webinar technology itself is easy to use, convenient and hassle-free. And, it is very reliable – with leading virtual events solutions providers, the chance of a performance glitch is less than one percent.

So, you can rest easy, knowing that there is no downside to hosting webinars. They are low-cost, effi cient and effective communication and marketing tools.

The latest round of affi liate conferences in Budapest in September and in London in October has once again highlighted the benefi t live, educational and networking events have for affi liates and operators in this industry. But what about small scale versions of these educational talks and seminars in an online capacity as a supplement, rather than replacement, to the distribution of knowledge in the industry? Is there room for more operator/affi liate and consultant/webmaster education via the use of webinars? In opening the debate, we asked Denise Persson, CMO of ON24, a virtual events and webcasting company to give us her top tips in getting the most out of webinars.

GET REAL RESULTS FROM VIRTUAL EVENTS

As the Chief Marketing Offi cer for ON24, DENISE PERSSON is responsible for the company’s strategic and tactical marketing efforts. Persson’s experience includes a variety of marketing management and product management positions. Prior to joining ON24, she was executive vice president of global marketing for Genesys, where her responsibilities included marketing, global sales coordination, strategic partnerships and the company’s product development roadmap. Persson holds an MBA from Georgetown University.

WWW.LONDONAFFILIATECONFERENCE.COM

London Affiliate Conference28th – 30th January 2010 Old Billingsgate - London

• Strategic Conference Programme: Hear insights from the leading experts in the industry, our panels and presentations will keep you informed about current industry trends and market updates.

• Exhibition: With an expected 80+ exhibitors this will be the biggest iGaming exhibition, offering more exhibitors for you to meet, engage with and maximise your business.

• Networking: The relaxed atmosphere of our events encourages the open exchange of ideas and experiences. Return to the office armed with increased understanding and top industry tips.

• ASOP: The Affiliate Series of Poker is now open for all attendees to compete. Play with the chance to win big, big prizes.

• Party! Clinch your daily deals with an evening drink or two at one of our many exclusive networking parties.

‘As always, the event was great. Good meetings, networking and socialising, increased commission deals and interesting concepts to develop for the future. Looking forward to next one already’ (AAC attendee 2009)

www.LondonAffiliateConference.com

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