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Typical example how Casino Affiliates get cheated :
A player makes a deposit of $100 and $100 is 100% of the total available that can be distributed. The crooks will try to make you believe that they have more than 100% to distribute, when in fact it’s impossible. If the player made a deposit of $100 then all he can lose is $100 and he can’t lose more than 100% of the amount he deposited. Hard to believe that we need to remind you about these simple elementary facts, but it’s necessary when dealing with con artists that will try to make you believe anything.
The player deposits $100 and it’s 100% of the total available.
From this 100% you need to deduct the following:
The licensee will pay an average of say 25% license fee to the game developer. The game developer has good systems in place to make sure the licensee can’t cheat them, so they will collect the 25% and you can be sure about this.
The licensee needs to pay an average of say 12% for high risk credit card processing, charge backs, anti fraud systems, processing and payment fees, bank charges, and other fees on the processing, and making payments and receiving them and collecting them, etc………
The licensee has operating expenses of say 28% for paying salaries, rent, gaming license, advertising, offshore servers and connections, IT and crooked programmers, traveling, insurance, leasing, bank charges and loans, legal expenses, customer support, telephone, depreciation, offshore companies, accounting, auditing for some, taxes, sales tax, etc……………
The marketing companies will offer affiliates an average of 25% to 50% and some much more. They also offer the affiliates to get up to $400 per player, plus all sorts of gimmicks, and other incentives to sign up, and then stick to their fraudulent programs. Let’s take 35% as the average they promise the affiliates.
25% license fee
12% payment processing
28% operating expenses
35% marketing company
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100%
The first problem is that in the above example, the licensee didn’t make any money, and the 100% are theoretically gone, there is nothing left for the operator.
The other problem is that we didn’t take into account the sign up bonuses, and other incentives given by all the operators to attract new players and also to get repeat business.
The above average percentages can vary by a few points, either way, depending on where these crooks operate, and how they are set up, but a few things are certain:
1) The game developer makes sure he gets paid his license 25% license fee.
2) It’s hard to get the 12% processing fees down, because of the high risks involved and the penalties that are common in the industry. If you feel that 12% is high for all these expenses, you are out of touch with the reality. The reality is that many of these very big operators are also laundering money, and they are offering to credit card processors 20% to 25% just to process the credit cards. Credit cards are only one component of our average 12% and for many operators it’s much higher.
3) The operating expenses of 28% can naturally vary, either way, depending on locations, volumes, efficiency, and other factors, but it’s hard to get them down because many are fixed and recurring expenses. Many licensees have considerably higher operating expenses, because the game developers steal their clients to direct them to their own sites, where they make a higher profit margin. This means that the licensee needs to spend much more to get some business through the door, so his operating expenses can easily go up.
4) You can be sure that the marketing companies will have a good system in place, so they will get paid by the licensees. This means that they will collect the average of 35% from the licensee.
Where did the money for the affiliates disappeared in all that because in the above examples the affiliates didn’t get paid? The marketing companies got paid, and everyone else, except the affiliates.
The answer is that the affiliate’s money didn’t disappear, it was programmed by the marketing companies and by the licensees that he wouldn’t get it in the first place, or will only get a tiny percentage of his real commissions.
There is 35% missing right there, and the crooked marketing companies get away with it by only paying a very small percentage of their own 35% to the affiliates.
A very high percentage of affiliates get cheated an average of 95% to 99% of their commissions. This means that instead of getting a commission of $100 they will be lucky if they get $5 and in most cases, lucky if they get $1 or $2.
More than you can ever possibly imagine get cheated 100% which means that if their net commission was $5,000 or $10,000 or $25,000 or $50,000 they get nothing, absolutely nothing, zero!
We haven’t seen a marketing company, or a licensee, or a game developer that was not involved with massive constant and permanent frauds.
These crooks wouldn’t think twice about stealing you hundreds of thousands of dollars per month, or millions of dollars per month. In actual fact, their systems are designed and programmed for that, straight frauds at all levels, on a massive scale.
Many of these crooks would prefer to drop cold than pay you a commission of $10,000 and it would probably kill them of a heart attack!
Don’t forget that most of these people are human detritus, failures who couldn’t make an honest living before the Internet, junk people with heavy criminal records of all sorts. It’s not just the drug dealers, the ones laundering dirty money coming from racketeering, prostitution rings, child pornography, pedophilia, hard pornography, buying and selling adults and very young kids for prostitution, pimps, thieves, printing fake currencies, convicted criminals of all types, but also stealing money from thousands of old ladies, stealing your credit card numbers to debit your accounts, misleading and fraudulent advertising, securities breaches, stock market frauds, issuing illegal shares and selling them without registering them, and much more too long to list here today. Maybe another day we will publish a list of them.
In the above calculation 35% was missing, and it’s clear and obvious that it’s the affiliates not getting them. The problem is that 35% is often what the affiliate was promised, so his money is gone, because it got stolen by the marketing companies and the licensees working together on this scam.
When the licensee is too worried to end up in jail, he will simply give the 35% to the marketing company and tell them to do what they like, how they like, as long as they try to keep them out of their scam.
The marketing company ends up with the 35% they got from the licensee, and they now need to find suckers to sign up, and who are stupid enough to believe that they will get the same 35%. Don’t forget that 100% is 100% and it doesn’t grow any bigger when the player made a deposit of $100 that represented this 100% in the first place.
If the marketing company can find an affiliate stupid enough to believe that his figures are accurate, and reflect the real sales he generated, they will try to only pay him 1% or 2% and see if they get away with it.
In some cases, if the marketing company sees some potential of attracting even more new suckers to sign up as affiliates, because the first affiliate is advertising their junk banners on a good site, they may pay the first affiliate a bit more, say 3% to 5% but the name of the game is to pay them as little as possible, and to keep the biggest share of the 35% and cheat and steal the affiliates for as much as possible, and as fast as possible.
Some affiliates are happy because they make a couple of thousands each month and they think it’s great. Some are happy with just a few hundred dollars. If they knew that their real commission should be $50,000 or more, they wouldn’t think it’s that great.
You probably noticed that in our above calculations we didn’t take into account the various scams offered to players like sign up bonuses, promotions, incentives for making certain types of deposits, loyalty points and bonuses, and other gimmicks designed to attract new players and to keep the existing ones.
Some of these operators offer sign up bonuses of 200% or 300% or 400% or more, some offer up to $1,000 bonuses, and so many other variations in between.
Where does this money come from, because we only had 100% in the first place? Remember the player who made a deposit of $100 that represented 100% of the available amount to distribute?
The answer is that the affiliates get cheated, and don’t get their real commissions because there is nothing left for them in this scam, or not enough, and the players get also cheated because the games are rigged.
Normally licensees prefer to cheat a bit less the players for the first time, otherwise they will lose them right there. They prefer to make the affiliates pay instead. It’s much easier, faster, cleaner, goes undetected, and the affiliates rarely complain because they wouldn’t have a clue of what is really going on with the sales they generated.
If 100 different players make their first deposit and 99 lose the whole amount, plus the sign up bonuses, many will drop the casino or poker site right there, after the first time, and won’t come back again.
If 100 different affiliates get cheated, and get nothing at all, apart from one who may get 2% to 5% with a lot of luck, the other 99% won’t complain, because they don’t know, and what you don’t know, doesn’t hurt you.
Even assuming that 100% of the affiliates get only 1% of their commissions, the affiliates won’t complain either, because they don’t know the real commissions owed to them, but in this case they got cheated of 99% of their commissions, meaning they are lucky if they get $1 instead of $100
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