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Create passive income from Rev Share deals (33)

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Hola people!

As we all know affiliate marketing has huge ups, but it can also have huge downs. You're running a big campaign, everything is going well. You're even multiplying your daily profit times 365 and your eyes start to twinkle after seeing the number!! And then... The offer goes down... Overnight... And there goes your new yacht ! Every affiliate who has been in the game for some time knows this feeling: it sucks! Your profit took a huge dive (if not at zero again) and this is demotivating. I've experienced it as well multiple times over the course of 8 years I've been playing this game. 3 years ago it all changed though and this is what I want to talk about.

If you start to treat your AM business as longterm and you want to be in this game for several years, you want to start thinking about building assets. You don't want to be the bottleneck of your own operation, right? Every asset building starts with investing. You invest short term to benefit on the long term. A very interesting business model is recurring income, this is how the PIN submit, dating, casino, games, diet, skin, muscle... companies make money. See what I mentioned here? Every big vertical relies on recurring income. They use us, affiliates, as the "short term" investment (the CPA is the investment) to benefit from it on the longterm. But did you know you can benefit from the recurring income as well with a lot of the offers you currently run too? This is called the Rev Share model.

Rev Share, or full out, Revenue Share basically means that you get a percentage X of the revenue you generate for company Y. This model is very common in the casino/gambling market and this was actually my first experience with this model too. Before 3 years ago I had a different mindset. I wanted QUICK cash, as soon as possible, with nice looking ROI numbers! A friend of mine hit me up and asked if I wanted to do a JV for sportsbetting affiliate program (sports betting / gambling / casino). He knew the account manager well and the account manager could hook us up with a wooping 40% revenue share deal. At this point I was still skeptical. My friend then said he had some inside info that this sportsbetting company was going to start a big branding campaign in the Eastern European countries for sports betting. Now I saw the opportunity and this is why:

1. Traffic is cheap
2. There are big spenders in those countries
3. With sports betting the possibilities are endless
4. It wasn't very known yet there, so CR's would be high

We set up a website with different subdomains (1 for each country), we were targeting +/- 7 countries as a start. We had content written for every single big sport event taking place in the next 6 months and create LP's for each of the events. Our plan of attack was SEO & AdWords. Within 1.5 months, we already generated 400 PAYING customers and this resulted in about 7.5k euro. We scaled it and in our top month we hit around 25k in revenue. Fast forward to 6 months later: The sportsbetting company put in new regulations for affiliates, the way we promoted it was not allowed anymore and we said "fuck it" and didn't put in any effort anymore. Fast forward to today, 2.5 yrs later: it still generates at least 5k euro / month. For doing nothing !

After seeing the first results of rev share, I started rethinking my strategy for AM. I've always been running dating heavily and most companies (if you do volume) will want to work with you on a rev share basis. If a dating company can pay you $5 / lead, you can be sure that the lifetime customer value is at least double on average for them. Are you able to send quality? It can be worth $15 even. See the potential here if you'd have a rev share deal of 50%? You need a good cashflow of course, but in the long run it's definately worth it.

Right now I have 3 rev share setups going and I want to share the verticals with you: casino / dating / bingo. Very lucrative, if you want a referral for any of these, send me a PM and I'll see what I can do :-)! For me this results in 25k euro ADDITIONAL profit per month (this is minus the direct profit from actively generating the leads). This number increases over time as you send more and more leads. Works very motivating when a big camp goes down for whatever reason to see the profit is still coming in nicely. It's also a good security and a great asset for my company.

To summarize why you should have campaigns on rev share basis

• "Passive" income
• Your business has assets and creates value
• Very motivating
• You automatically start focussing on better quality
• You become a business partner of companies this way
• LONG TERM THINKING

Any questions, feel free to ask! Hope it helps

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Sick write man! Got a case study on this topic coming actually, little passive income never hurt :P

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Great post.

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With casinos and sportsbetting I never had much success but dating communities and also camsites can be great for passive and really longterm income as well.
I promoted mydirtyhobby when it started in 2006 and still get some money from that time although I don´t promote it anymore since 2007.
I don´t receive much money from there anymore but you still can see the potential.

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Cam sites are definately very interesting too. I've heard the lifespan of users on those sites can be HUGE!

Thanks for mentioning it

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Scito, very nice write up!

Started out with casinos myself. Always wanted to go for CPA but some casinos only gave me the RevShare option. I agreed to it since I got no other choice, but now 1.5 years later Im very glad that I did this "mistake", it has proven multiple times more profitable than just sticking to CPA.

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Thing about rebills, don't they have a dropoff? I promoted google sniper and got 3rd place in the previous two competitions.

The rebills keep coming in, although slower than before.

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Scito delivers!

What is with Dutchies and smashing it with rev share??! :P

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Hi Scito, i want to know if i can run casinos on adwords?

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You'll have to cloak nowadays.

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Thank you, can you recommed some network for casinos?

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In some countries you still can

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But it is very strict, and need to get the certification from google adwords. So I think the best way is cloaking, but i don't know how to write the ad copy and I'm afraid of ban from google.

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cloaking on adwords with casino is close to impossible these days. Google hands out those certifications quite easily, you just need a good site with plenty of content. I recommend Flytonic template and writer from Odesk to fill it up.

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why do you think its just Dutchies?

I'm hurt...I thought we were friends

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Ahhh comrade Polarbacon! I never said other people weren't doing it. I just know the revshare model is extremely strong in NL because of certain companies here.

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What networks has the best Gambling/Casino/Slot/Bingo offers? Most of the ones I see are Pay Per Sale (ie. min $10 deposit by user)... no Rev Share... and most seem to be for Bingo only... some slots.
Also, know of any legit direct offer sources? ie. bypass the Aff Networks?
How are traffic sources about ads? Do they ban or not allow them because of the gambling nature?

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With casino/bingo etc. most have their own programs that are revshare. It's only via the networks that you get per sale offers.
Just goto any casino site and you will see an affiliate link at hte bottom of the page, simples.

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thanks... yeah, that was what I was going to do... ie. go to the aff links at the bottom of the major players... was just curious if anyone knew of any off the top.
How receptive are traffic sources - ie. Display Ad networks, mobile networks, etc. in allowing us to promote gambling? I know some are against it.

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Awesome brother! For sure one of the best methodes, i have seen people doing xxx,xxx a month on etoro affiliate Revenua share progam.

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Thanks for the post, it's a very useful read scitox!

It's fascinating how big names in the affiliate marketing have started talking about thinking long-term and building an ASSET as opposed to chasing "ROI stars" all the time. A lot of advertisers/merchants have been trying to deliver this point to their affiliate base for a while and it's a good trend for both sides that they're slowly moving towards each other finding a common denominator that will benefit them in the long run.

There is a lot of work to be done though. A lot of guys still don't want to discuss anything but PPL (some of them only stick ONLY to SOI) trying to make sure their funnel is as short as possible. I guess this will most likely always be the case for those guys who are still building up their capital and experience in the industry since lead generation is gives you quick and reliable money when done right.

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To everyone who sent a PM: I'm not ignoring you, got overwhelmed by PM's past 2 days. Will get back to you as soon as possible !

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Great post!

Revshare is the most underrated concept in affiliate marketing.

If you know that an advertiser likes your traffic -- no matter what vertical -- your next step should be to test a revshare model. See just how valuable those leads can be.

There's also a big advantage to running revshare over a long period of time: you might eventually catch a big fish.

I remember this was posted a while ago:

http://www.xbiz.com/news/176526

One guys joins Flirt4Fun and spends $57,000 in a weekend.

Would you want a $2.50 slice of that? Or a 30-40% slice of that?

There are certain traffic sources with low quality that will get you kicked off most PPL offers, but you can really light them up with revshare. It's well worth researching, and like you say, a great asset to an affiliate's business.

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That is seriously messed up. Poor poor guy.

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Happy, happy cam girls though

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From the article on XBIZ:

"The cam site’s models can charge anywhere from $4 to $15 per minute and customers may also tip up to $12,500 in a single click."

And the site name is what? Flirt4Free.com - Brilliant!

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its similar to mobile games and online gambling,
few players spend crazy amount of money
its much important to have this guys contacts
than to have quality game or very good monitization..

its also quite hard to copy because you dont see it..

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Awesome, its funny because I know where your coming from with the Revshare. On ClickBank I have money coming in still to this day having promoted RS products some years ago. Promoted stuff on YouTube and had I scaled it up then maybe Id be making more today. Going to shoot you a PM right now, I like this concept. Thanks so much for the awesome post too.

Typed on mobile, sorry for any typos, if any.

Cheers

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Yeah rev share is pretty awesome, but BE CAREFUL!

I ran a lot of dating campaigns on Facebook to a bunch of WhiteLabelDating.com sites since I started in internet marketing. WLD exclusively does rev-share, and I thought after 6+ years working with them I could trust them (I personally know a lot of the people working there). Well that's not the case. As everyone knows, FB banned dating more than a year ago and since then I was only collecting the rev-share every month. It was pretty sweet as it was still around $7k per month (around 40% rev share) up to 1 December 2014. Revenue was slowly dropping every month, but I was expected to generate at least another $50k. Then I got an email without any warning that rev share drops to a 10% flat rate until I can sign up big numbers again. So now I'm making below $2k per month.

The net result of this is that I'm actually slightly worse off now than I would have been with a straightforward CPA campaign.

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^That sucks. Is the drop to 10% hidden in the T&Cs somewhere?

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I signed a contract with them about three years ago, and somewhere in there there's a clause that they can adjust the rev share percentage as they see fit. I guess it's my fault to have agreed to that, but I didn't see any cause for worry as at that stage I had done more than $1million in revenue with them and I thought I could trust them. I was actually at a very high rev share (I think around 60%).

I've even spoken to some lawyers and they say the way the contract is written I have a slim chance of being able to successfully sue them.

In my opinion they are in financial trouble. They've been trying (unsuccessfully) to get into the US market for ages and spent a ton of money to buy databases and other sites. I knew all this, so in hindsight I should have seen the warnings.

TL;DR: rev share is great, just make sure you're dealing with a company that's not making stupid financial decisions, and read all contracts and terms and conditions! Rev share is a long term arrangement, so these things are extremely important.

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Hi scitox,

Thank you very much for this post. Something that I have been missing in my affiliate marketing journey is campaign stability: they are performing nicely for a week/month and then all of the sudden they start dying.

I'll like to take advantage of your referral proposal in the casino and bingo niche (not really interested in to dating). As I said here there are an awful lot of casino/bingo websites and I'll like to start with the right feet.

Thanks for the thread, it really opened my eyes.

Peace!

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+1 Thanks to the OP! Sent you a PM about the referrals as well.

I'm assuming though that if it's already a half-decent revshare program then chances are it's very, very difficult to compete with SEO and it would be more realistic to drive traffic via PPC? Or perhaps other means like email traffic.

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