Affiliate marketing is, believe it or not, yet another sector which found its way to incorporate blockchain facets. Statistically, revenue from affiliate marketing programs grows by 10% annually, and in 2019, the global industry is estimated to be worth well over $12 billion which is just staggering.
Similar to other industries that blockchain is enhancing, affiliate marketing is generally dependable on third-party providers called affiliate networks. Doing what it does best, blockchain aims to eradicate third-party providers by employing blockchain affiliate networks that will streamline the affiliate process and put an end to unreasonably high fees.
Traditional Proceedings in iGaming Affiliate Marketing & Its Constituents
Presently, iGaming affiliates earn by promoting on their websites or through social media and messaging channels the gambling services offered by online betting companies.
The companies give certain revenue shares or any applicable commissions for every losing bet or every signup from the affiliate’s referral link. This remuneration process has been proven to work many times before, and it unmistakably creates a win-win situation for both parties. If the affiliate’s traffic is proven to work for the gambling niche where plenty of iGaming business operators compete, the publisher, which in this case is the affiliate, can easily earn immensely.
For this process to be successfully conducted, publishers need to install individual tracking codes for each referral link in order to keep track of the conversions. After which, they have to report back to the casino operators about various KPIs in terms of best performing referral, number of signups, country of origin, activity time, etc. This is where third-party providers – affiliate networks – come into play.
These affiliate networks are clustering publishers and advertisers from various niches and are connecting them to one another accordingly. This is very similar to what Amazon is doing — linking buyers with sellers.
Usually, affiliate networks have hefty commission rates going as high as 25%. Some of the challenges which emerge include the lack of transparency through the entire affiliate system, need for trust, high fees, and slow payments.
Ex: If advertiser pays $10 USD to affiliate network, how can advertiser rest assured that the affiliate network doesn’t pay affiliates far less for each referred user, on top of taking huge fees?
This and many other drawbacks are what blockchain aims to solve. With blockchain employed in the iGaming field, there will be a more cost-effective and safer ecosystem for the end users which are both the gambling affiliates and the betting site operators.
Introduction to Blockchain Affiliate Marketing Networks
Newly devised smart-contract affiliations formed different frameworks to tackle affiliate marketing challenges. Attrace, for example, is a decentralized affiliate network based on Ethereum. It utilizes blockchain technology at the heart of the affiliate marketing by storing deals between casino operators and affiliates and then connecting smart contracts to each individual referee, regardless if coversion has been achieved or not.
Attrace incorporates far lower fees than traditional affiliate networks (0.5%). It streamlines the process by linking both parties directly in a transparent ecosystem in which path of each referee will be well known and recorded on the blockchain. Smart contracts will also be able to govern the terms of the affiliate sales agreement casinos and their marketing partners that earn on a commission basis.
We are very pleased to announce that yesterday Attrace has accomplished the first transaction on testnet!
Additionally, we added direct private channels between end-users.
Look forward to a video and testnet access in the next few weeks!
Info on our blog https://t.co/2RNXyF7ngF pic.twitter.com/yOgJIRz7rF
— AttraceNetwork (@AttraceNetwork) March 21, 2019
In a similar fashion, Blockverse has established an all-in-one environment that both publisher and advertiser can use for direct communication, simultaneous with the process of conducting affiliate business. The platform boasts highly accurate and auditable data in real time. All parameters are fully customizable and can be easily drilled down by geolocation, players, and banners.
Blockverse’s onboarding process is consisted of 3 easily attainable steps:
- Select most beneficial package and sign the license contract
- Download and install the APIs
- Reap the benefits of decentralized affiliate platform with high inputs and transparency
In both cases, affiliate networks urge both affiliates and betting site operators to conduct all transactions on-chain with cryptocurrency. Attrace at the moment is fully exploiting the idea. However, it plans to introduce the option of earning the revenue in fiat as well. This will potentially lower the barrier for non-crypto-savvy users to pitch-in.
Did you know that with #Blockverse you can negotiate deals within the platform directly with your partners?
Create your ideal deals, share it to the network and get it active within seconds!#blockchain #igaming #affiliatemarketing #innovation #startups pic.twitter.com/TJctpWYSh2
— Blockverse (@theBlockverse) April 8, 2019
One of the blockchain affiliate market-changers, namely RefToken, not only allows casinos and their partner webmasters to do business in a trustless and decentralized ecosystem, but also track the value of the sale or conversion, for instance if a transaction is worth $100 or $10.
To combat the fraudsters, RefToken developed an immutable audit trail of all revenue and conversion data stored on the blockchain — allowing brands to audit and identify fraudulent affiliates. Likewise, affiliates will be pleased to hear that all commission payments they receive will be issued automatically and instantly on the platform, eliminating the cash-flow issues.
Blockchain affiliate marketing networks in the iGaming industry or any other field can at any time use traditional, more popular affiliate networks to advertise themselves for substantially reduced fees – in some instances as much as 90%.
However, no decentralized affiliate network has yet fallen into this trap, and they keep on preaching why blockchain is better as it can offer far more than just “less fees”.
- Fraud prevention – one of the most widespread issue for both casino operators and affiliates. Blockchain does not rely on trust as all transactions are stored on a ledger plus the agreements’ storage within the smart contracts.
- Transaction speed – Whenever a casino and an affiliate reach a business deal, the transaction process can sometimes take months to be successfully administered. Blockchain, however, hastens the process by conducting instantaneous transactions once the terms from the smart contracts have been respected.
- Boosted communication funnel between casino operators and affiliates – The traditional affiliate networks stand between casinos and their affiliates. This means that the two parties never have the opportunity for a direct discussion about creating more value in the relationship. For example, transparency of which kind of links or ads performs best or how best to market new products. Blockchain efficiently upgraded the process by removing the need for affiliate networks by introducing entire blockchain affiliate environments which are more user-friendly and resourceful.
So, will blockchain replace iGaming affiliate networks? That’s unlikely because blockchain alone is not a product; it’s a technology upon which to build a product.
Blockchain will likely be adopted and heralded by an influx of affiliate networks and tracking platforms. Piercing through to the vanguard of blockchain affiliate marketing networks along with iGaming, ecommerce, trading, and social networks, CoinPoint Group brings an added value by allying with a number of blockchain affiliates and offering unrivaled marketing prowess.
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