What Are The Risks And Benefits For Affiliates That Setup Their Own Online Casino
So how does an affiliate benefit by setting up his own online casino? or are there risks for him?
So, you’ve been working as an iGaming Affiliate for a while….
…and it’s been profitable because you’ve been applying what you’ve learned. And it’s been rewarding so far because you see how your Affiliate Marketing has made your iGaming Operator’s business grow.
So now you’ve come into thinking…
“What if I set-up my OWN iGaming business? What if I have my OWN brand?”
Good questions you got there!
Even better since you’re not a beginner anymore, but an experienced member of the iGaming industry—because in this article, we’re gonna dive right into your benefits and risks of setting up your own online casino.
First of all, as an affiliate, you must be fully aware of what your strengths are. These strengths are your advantages when setting up your very own online casino:
Experience. You have experience in approaching, convincing, and converting prospective players to your operator’s casino games and sports betting websites. Although it’s going to be a different level altogether when you become an operator—hey, at least it’s not entirely new to you, which makes it less intimidating and in turn, success looks more realistic from your viewpoint, right?
Knowing your player’s preferences. Which are the hottest games to put in your own online casino portfolio? Which games can your online casino do without? What type of dealers do your players like?
These are answerable questions for you as you’ve already gotten to see what players prefer. You can take this to your advantage by designing your own iGaming website in the most relevant, appropriate way. This way, all the features, all the edges and corners of your iGaming website would meet the expectations of your prospective players.
Deep knowledge of the iGaming industry. In order to be effective in your marketing and promotions, you have extensive knowledge of the ins and outs of the iGaming industry.
At which side of the Internet do players hang out? Where and at which point are they most likely to get interested and click on your ad? Where do they hate to see your ads? Where are they gonna see your ad first and foremost?
You have what it takes to make your iGaming operator’s brand stand out from all those noises from the Internet with effective marketing strategies that you’ve developed all throughout those times of being an iGaming Affiliate.
Pre-established relationships (or at least, familiarity) with operators and software providers. You’ve been in a mutually beneficial relationship with your operator. You’ve known the brands that provided the games to your iGaming operator. Probably even talked to them. You can benefit from your operator’s experience, sources and knowledge and take note of their mistakes, techniques, and strategies, so you can proceed with even more knowledge when you’ve finally set up your own iGaming website. Although your iGaming website creates competition depending on where your and your operator’s target markets are, support and encouragement will still be given.
So next we ask the question, since you already have all these advantages in hand. Then what are the benefits that you could reap from making this transition from an Affiliate to a Online Casino Boss.
This is actually a very simple fact which as any affiliate in the iGaming would dreams of becoming their own online casino Boss. So lets lay out the benefits for you :
- You are your own Boss and control the destiny and direction of your efforts
- You open a potential to earn bigger as there are no percentages or royalty payout which you need to wait for
- You are in control of your own finances, you decide how much to spend in order to potentially reach a certain income level
- You manage your own time and not work at the schedule of others
- You do not market other brands for their benefit but market your own brand for your own benefit
- You are no longer at the mercy of other brands and their activities as even if any brands shut down, it would not effect you anymore because you market your own brand
All endeavors, no matter how knowledgeable and experienced you are, come with risks. Here are the most common ones that iGaming operators, both new and experienced, face:
Heavy regulations and regulatory changes. Profitable as it can be, the iGaming business remains heavily dependent on external factors such as governmental regulation, depending on where you get your iGaming license and where you’ll operate your business. What your iGaming operator does right now is a good reference especially if you want to get the same type of license, but it’s not a good reference point anymore if you’re gonna get a different license somewhere else.
Go through the gaming and gambling laws and regulations of your target countries and regions and see how they will prospectively impact your iGaming operations. Abide by their laws. Remember that a single lapse has enough power to shut down your iGaming website—if you’re not careful.
Do keep a really close eye on these regulatory changes so that you won’t have to get your iGaming business in trouble. It helps to hire an iGaming legal consultant in order to keep track and know how to proceed.
The ins and outs of the iGaming industry in relation to technological advancements. Technology and how you use it to your advantage is also a very important factor however technology may also be the instrument that is used to take advantage of your online casino.
Its vital indeed that you constantly monitor player compliance, game processes as well as behavioral analytics to ensure your online casino doesn’t fall prey to some exploiting party.
Cash Flow. As this is the gaming world, you could win or you could lose. Thus it would be very important that you have enough finances to sustain your online casino business in order to ensure that you have smooth operations on your online casino at the same time building trust with players by ensuring timely payouts in the event a player wins.
These are just the surface of the risks and benefits of an Affiliate like you embarking on creating your own iGaming business. But don’t fret, if it’s smooth enough for newbies to succeed in this industry, something tells us that it’s much smoother for someone like you.
Talk to us at ALT and we might just get started right away.