Why only promote a few rooms?

[bahh]

Those of you that only promotes a few rooms, why don't you promote as many as you can? I've noticed that some affiliates only promotes 2-5 poker rooms. What is the benefit of doing that? Is there a benefit?

[Darko]

there are some benifits.....

If you send say 100 players a month to 20 rooms = 5 players a month per room on average. Sending 5 players a month will not get you on the top teir rev share and if you are on cpa, you will prob only get the basic cpa.

If you send 100 players to 5 rooms, then you could prob get a higher cpa and if you're on rev share, you have a much much higher chance to reach the higher teirs.

So with less rooms, your cpa or rev share should be better (basically you should earn more per player you send).


I guess there are other advantages / dissadvantages to promoting 5 or 25 rooms on your site and it depends what kind of site you have........ i.e. if you site is mainly based on reviews, it would look silly to only promote 5 sites

[Randy]

Let's say the average conversion rate for the entire industry is 1:100, and the average CPA (or player value if you're doing revshare is $100. And let's say I can send 2500 visitors to my advertisers a month. If I'm diversified and advertise a large number of poker rooms, then I'm more or less sure I'm going to make 2500/100 or 25 players, and at $100 apiece, that's $2500.

But let's say I limit my promotions to 5 poker rooms who convert 1:50 and have an average player value of $150 instead, with the same amount of traffic. Now I get 2500/50, or 50 players, and at $150 apiece, I make $7500. That's 3 times as much money for the same amount of traffic.

By overdiversifying, you guarantee average results. By focusing only on above average partners, you maximize your potential income.

It's the same reason that diversification in the stock market ensures average results compared to the market. A focused portfolio of stocks that perform will almost always outperform a hugely diversified portfolio of stocks that have average performance.

Your results may vary, and my example assumes you find partners who outperform other partners.

[TheDonk]

Interesting perspective Randy. I've often thought of closing down a few rooms, but I'm concerned that players may either:

1/ not find the room they're looking for
2/ never come back to my site because they already know I only carry a few rooms
3/ don't think of my site as an 'authority'
4/ aren't able to find an offer that excites them
5/ already have an account at most of these rooms, thereby I'm not offering them enough choices.

You've got me thinking though that maybe I oughta go with my top 10 rooms, and cancel out the rest. Really that's about all anyone signs up for anyway.

Question for Randy and anyone with an opinion:

Is carrying 6-7 US rooms, then the top 3-4 non-US rooms enough to look like an 'authority'? Authority is the key word in this question.

This is starting to turn into a very interesting thread, I hope lot's of people get involved in this.

TheDonk

[Randy]

It depends on what kind of authority you want to be. If you want to be the authority on all or most of the online cardrooms on the Internet, then no, probably not. On the other hand, if you want to be the authority on seven card stud, you could get away with carrying 2 or 3 rooms.

If you want to be the authority on those 10 or so cardrooms, then I'd say that the quality and quantity of the writing you have about those 10 particular cardrooms would determine your authority status. In other words, if you had a website that devoted 100 pages or so of rich content to each of 10 cardrooms, you'd probably become the authority for each of those sites pretty quickly.

The quality of your content in relation to the theme of your site is going to be ultimate determining factor in your authority.

[bahh]

Thanks for your posts Randy, never thought of it that way..

[LadyHoldem]

I have little tiny bits of money all over the internet that i'll never see, mostly from joining say a cell phone affi program, because it fit into a news post, or .. a dating program.. or whatever.. just because THERE SHOULD be a link somewhere, so I'd go find one :P

Get 2 deposits, not enough for a cash out .. and move on.. lol.. this was back when I was braaaaaaaaaaaand new If i could get all my lil 12 bucks gathered together, i betchya i could go out tonight!