888poker is converting affiliates from Revenue Share to CPA deals after announcing a record breaking and growing year. 888poker revenue from US $38 million in 2010 has increase by 58% to US $61 million in 2011. It’s active player base has increased to 318,000 at the end of last year and new player sign ups was up 77% in total for 2011.
That is the good news for 888poker and its shareholders. The bad news for poker affiliates who helped with that turnaround is their fingers are being prised out of the 888poker pie.
888poker has finally, after many years as the retarded looking and acting cousin of 888casino and most other poker sites, gone through puberty and emerged as the bright young thing of poker. Like the black sheep of the family watching and reporting on what others do in the poker world but not acting or following them. Then suddenly becoming a Wolfe in sheep’s clothing – playing, destroying and dominating the poker world. Will it last though?
Our experts have been following and analyzing 888pokers rapid rise this last year. They have always angrily and jealously maintained (considering the rubbish sites and networks these ‘experts’ are working for) that its growth is unsustainable with its current poker business strategy. Being experts we believed them but hoped they were wrong, knowing they would not be. They seem to have been proven correct.
Does 888poker need affiliates?
888poker (formerly Pacific Poker) has always relied on 888casino (formerly Casino-On-Net) to give it a constant supply of rich and very useless recreational poker players. The type that quickly get destroyed by poker sharks and regular grinding, meaning 888poker get very little of what they would have got if the fish had stayed as a 888casino player. Cross selling products does not always work as was intended. Half the reason they concentrate on the recreational model and deter sharks.
888poker has always been known as one of the easiest sites to win money on and that will never really change. So 888poker does not absolutely need poker affiliates, unlike other poker sites and some networks. Especially now 888poker have used them to help reach that all important player liquidity tipping point.
888poker now appear to be changing all their poker affiliate deals from a Revenue Share (MGR) deal to Cost Per Acquisition (CPA) deal. Showing what they and the online poker industry really think about most poker affiliates.
They even did the dirty on Poker Affiliate World (PAW) and signed up with them, got access and promoted to all the PAW sub affiliates using the Rev Share deal as the bait, then only 2 weeks later switched the PAW affiliates to CPA! Oh how we lol’d at that classic standard 888 move.
That is how you do business with affiliates to create a long term partnership and trust. But we still doth our cap to them for planning and executing the move so brilliantly.
Two weeks ago, 888poker was added to the PAS network. Unfortunately, shortly after the poker room’s launch on PAS, 888poker made a decision to suspend all new MGR offers for all affiliates (including non-PAS affiliates). Because of this recent development we have had to put the 888poker offer on hold for the time being. If you previously had made a revenue-share request through PAS for 888 it will need to be canceled.
There is nothing PAW can officially do once the affiliates signed up with 888poker, apart from push other deals on them. Also, from the various CPA deal payment triggers we have seen, the T & C’s are demanding, so it will put PAW and other poker affiliates off.
888poker now look to be aiming at getting a decent return on their investment from the player promotions and the affiliate deals that have cost them heavily in the last year. Revenue and player growth may not be so rapid next year but their actual operating profits should increase per $ raked.