HOW TO CHOOSE A GOOD POKER DEAL - CPA vs. MGR.

Monday, 18 January 2016

HOW TO CHOOSE A GOOD POKER DEAL - CPA vs. MGR. - A COMPARISON 

If you are reading this, it is reasonable to assume two things: you are obviously interested in the poker affiliate business, and second, you would like to learn more about the nature of deals you can find on the market. In both cases, there are also assumptions that you are either a serious affiliate always wanting to learn more and improve his or her success or you are just starting out and seriously considering a career opportunity in the affiliate business. Whatever the case, this article should offer some insight and help you better asses the deals you will find on the market.

So, let's get started.

WHAT ARE YOUR CHOICES?

The two basic choices you will be offered most of the time are Cost per Action (CPA) and Monthly Gross Revenue (MGR) deals. While some sites offer only MGR and others work exclusively with CPA’s, most will give you an opportunity to choose between the two.

When assessing these options in order to make a right decision, the question you should be asking is - what are the important factors I should be looking for when trying to evaluate the offered deals?

The most important one is surely the quality of the players you are referring. Think about it. For example, if you are referring a reliable high roller that plays a lot of games and generates a large amount of traffic, an MGR offers you a lifetime deal that enables you to receive a percentage of that players rake in perpetuity! But if you are referring a player you asses will play only occasional micro stakes games and won’t easily move up the ladder, a CPA deal that gives you instant cash might look like a better option.

The second important factor is your long time strategy. If the “quick and easy cash” idea of CPA deals still sounds too sweet to pass up, here is the simple truth - poker rooms are not run by fools that you can easily trick! Before you are offered a CPA deal that is better than standard, the site will use their system to analyze and assess the quality of the players you refer. That is to say, before you receive any money, your players' traffic is evaluated and you will receive your payout only if the results prove your players worth,. That is why the starters are always offered standard CPA deals (60$ - 65$) while experienced affiliates with a quality pool of players get the best deals (150$ or even 200$ for each player).

Of course, it is very important to note that if the circumstances change, you can always ask your affiliate manager for a better deal. If you players are worth it, they will (or should) know how to value the situation.

CPA - QUICK CASH FOR SPECIAL CIRCUMSTANCES

CPA: ‘Cost per Action’, means you will get paid a fixed amount of money for every player you refer and get to playing in the poker room. But before the payout actually happens, the poker room has a rule where every new player needs to play a set number of raked hands or earn points. This system is implemented in order to prevent fraudulent situations where the referred player only registers to play a small or insignificant number of games before leaving the room forever.

MGR - REVENUE SHARES AS A GOOD LONG TIME STRATEGY

This deal is both simple and sweet and it means that you are awarded a percentage of your players rake as long as that player is actively playing in the room. For example, if you have a 25% MGR deal and your player generates 200$ in one month, you are awarded with 50$ that month. I repeat - this system remains active in perpetuity - as long as your player is playing!

A large number of new affiliates often go for CPA deals which does not need to be a bad thing. As we said earlier, the main factor you should take in consideration is the proper evaluation of your players. Compared to CPA’s, MGR deals have more potential to bring you larger amount of money in the long run. Just imagine you sign up a reliable high roller player with an MGR deal. This player plays a $1/$2 no limit games or higher only for 10 hours a month. This actually generates around 2000$ rake which would give you around 500$ on a 25% deal. And this is not a one-time thing like the CPA, it runs as long as the player is active and plays in the same poker room. So be careful before automatically assuming things and evaluate your players before you reach a final conclusions.

Another important thing to know is that referring just anyone to a poker room in order to "score easy money" will not get you very far. Poker rooms reserve the right not to pay in case your player does not generate a fair amount of traffic. For example, referring a player that only generates 5$ to 10$ a month will not be enough and referring a lot of these kinds of players will earn you a bad reputation or possibly even a ban.

Very simply, with CPA's you are never going to get paid more than your players are really worth, and at the other end of the coin, a similar thing happens with big players you sign with an MGR deal. In that case, you are not going to get paid close to what that player is really worth to the room.

So the choice between these two comes down to your own affiliate strategy. If you are planning to stay in business for long, an MGR deal makes much more sense. It is very rare that affiliates with a profitable MGR deal ever switch to CPA while the other way around is a relatively common occurrence.

EXCEPTIONS

There are cases where a CPA might make more sense than an MGR. First is when the difference between the two offered deals is obviously too large to ignore. That is to say if the MGR deal is for example way worse than the offered CPA deal. For example, when a bad 20% MGR deal is contrasted with a great 150$ or 200$ CPA deal.

The second case you might consider a CPA over an MGR deal is a special occasion where you need quick money to finance a crucial step in your growth. For example if you need the money to start your own site or make a costly crucial update you are not prepared for financially.

Other than these cases, an MGR deal will always bring you more revenue than a CPA. You just need to be patient enough to build a solid player base. This process can take time but is ultimately well worth the effort!

In conclusion, while CPA's are a good option in special cases when you need a quick cash injection to help you out with realizing important long term plans and actions, if you are really serious about your affiliate business and plan to make it your primary business endeavor - MGR deals are the real way to go.

Take a look at our current offer of CPA and MGR deals for a variety of different poker rooms we work with and feel free to compare them with any offer you can find. We are sure it won't take too long to conclude that it will be very hard to find better deals somewhere else. So don't waste too much time and start working.

Take look of our best CPA and MGR deals on PokerAffiliateWare!

Here are CPA deals:

888 Poker - $150 CPA / 100% BONUS UP TO $400

William Hill Poker -  $100 CPA / 200% UP £1200 BONUS

Here are MGR deals:

24hBet: 15% GROSS / 200% UP TO €1000

Coral VIP: 65% Revenue Share / UP TO £200