I wanted to make this post here at PAP because it is probably one of the most common question asked amongst new affiliates. There really is no correct answer to which is the right commission plan to choose, as both can make sense in certain situations. I have actually written on this before, and here a few key factors I take into account when choosing either CPA or MGR for various poker affiliate programs.
- Is this site I’m promoting more likely to bring in new players or experienced players?
- Do I trust that the affiliate program and affiliate managers?
- If I were a to sign up here, could I see myself playing at this room regularly?….(retention).
- How big is the aff. programs CPA versus their mgr %, Likewise what are the requirements for CPA?
- Am I going to partner with this program long term or just for a few months?
- And last but not least…… I will speak with other affiliates to determine how the conversion and retention. is for others.
Often times it can simply come down to gut instinct when choosing poker CPA or MGR. Personally I think it is important to diversify your affiliate business and have a mixture of CPA’s and revenue sharing plans in your portfolio. Here are few benefits and downfalls of each plan:
CPA (Cost Per Acquisition) – By choosing a CPA plan, you are essentially being paid a fixed rate for the current and future rake your players will produce. Choosing the CPA plan is a great way for new affiliates to build up initial capital that they can then re-invest into their affiliate business. However, if your referrals log a ton of hours at the tables, you are leaving income on the table.
MGR (Sharing of Gross Revenue) - Many affiliates and affiliate managers see MGR as being more of a win/win plan for everyone. By choosing MGR, you are sharing in the profits (rake) generated by your players. An instance however where you may choose CPA would be if you do not have faith that your players will stay playing at this room for an extended period of time.
In my opinion if you are promoting any of the top sites that have proven to have good retention, then MGR is absolutely the way to go. However if you’re dabbling with the new sites that have minimal players playing on the site, consider looking into CPA and negotiating a good deal with your affiliate manager.