SBC News Voice of the Sports Betting Industry
In the dynamic world of affiliate partnerships, securing a beneficial deal with operators is paramount to unlocking the true value of players.
Yet, amid the pursuit of success, disputes over player value can occasionally arise, leaving both parties seeking an equitable resolution.
For Sirp de Wit, CEO of Inovatiq, who started his career in affiliate marketing back in early 2009, data-driven decision-making is key when navigating the intricacies of operator and affiliate negotiations.
Ahead of his appearance at the 2023 edition of SBC Summit Barcelona, Sirp de Wit sat down with SBC Media to delve into key aspects of affiliate partnerships and the significance of transparency, market dynamics, corporate social responsibility (CSR) and what the future holds for his company among other topics.
Disputes over the value of players can sometimes arise in affiliate partnerships. From your perspective, how can such disputes be effectively resolved to ensure fair compensation and mutually beneficial outcomes for both operators and affiliates?
Sirp de Wit: Disputes over player value in affiliate partnerships can be resolved through transparent communication and clear contractual agreements.
Establishing fair compensation models based on mutually agreed-upon metrics, such as player activity or revenue generated, can help align the interests of operators and affiliates.
Additionally, working with the right partners decreases the chance of wasting time on disputes. Experience within the field will tend to guide you in the right direction to limit the chance of getting into these disputes by simply working with partners that share similar values.
The deal should be good for both parties; otherwise, it won’t last and we are just wasting time.
At present do affiliate programmes offer sufficient transparency on customer data and engagement?
SDW: Transparency is crucial in affiliate programs, particularly concerning customer data and engagement. It is important to provide affiliates with access to comprehensive information, including net calculations, bonus rewards, and chargebacks. Detailed reporting can enhance trust between operators and affiliates, enabling them to make informed decisions and evaluate the effectiveness of their marketing efforts.
Most programs do offer the right information, but at the same time, we still see quite a few big operators working with outdated methods that lack much of the information needed.
As a Dutch professional who began his career focusing on the Dutch market, we’re curious about your perspective on the accountability measures implemented by the KSA. Specifically, how do you perceive the effectiveness of their active penalisation of affiliates for advertising offshore gambling operators?
SDW: I started my career within the Dutch Poker affiliate scene in early 2009. The world has changed a lot since then, but the recent KSA’s active penalisation of affiliates advertising offshore gambling operators demonstrates a commitment to enforcing regulatory compliance.
While effectiveness may vary and methods may be questionable, these measures aim to protect consumers and ensure a level playing field for licensed operators, which is admirable.
However, if history teaches us anything, I believe that current methods, which restrict the advertising capabilities of licensed operators too much, might push customers towards the black market. We have seen it in other markets. Time will tell.
Your business targets diverse geographical regions, – could you share insights on which markets have demonstrated notable profitability recently and how current dynamics impact your choice of deal compensation (CPA, Revshare or hybrid)?
SDW: We, Inovatiq, have quite a broad market split and we closely monitor and analyse market dynamics.
Recent trends have shown notable profitability in regions such as Central Europe, the Nordics and Asia-Pacific.
We adopt an agile approach, leveraging the potential in markets where we foresee growth in the coming 12 months, and similarly cutting down the focus where the return on investment (ROI) is diminishing.
How significant are initiatives like the one introduced through MrCasinova, where your company donated $1 to environmental causes for every player referral, as part of your CSR strategy? How do these initiatives contribute to the success of your business?
SDW: Initiatives like the one introduced through MrCasinova.com, where our company donates to environmental causes for player referrals, play a vital role in our corporate social responsibility (CSR) strategy.
This year, we donated to the Red Cross to help after the earthquake hit Turkey and Syria.
Such initiatives also demonstrate our commitment to making a positive impact beyond our core business operations.
Which specific skills that you have acquired throughout your career do you find particularly valuable in your role as the CEO of Inovatiq, allowing you to navigate this competitive environment successfully? Could you reflect on the growth of your affiliate network thus far and provide some insights into what the future holds for you and your company?
Inovatiq’s affiliate network has experienced good growth, over the past years.
Looking ahead, we remain focused on growing our current network and diversifying into new markets where we see the future upsides.
In order to navigate this complex and competitive environment, with many external factors constantly changing the landscape constantly, we try to stick to some guidelines:
- Keep it simple. Focus 80% of our time on the two or three things that drive growth. Eliminate (as much as possible) all the other tasks.
- Most crises (problems on the horizon) never really happen, so don’t worry about them. We focus on what we can control. This can save you a lot of time to focus on the things that drive growth.
- Good people drive growth, so take good care of them.
Sirp de Wit will be speaking on the ‘Affiliate Voice – the Value of the Player’ panel, which is part of the ‘Affiliate Focus’ conference track at SBC Summit Barcelona. The panel is scheduled for 20 September, from 12:20 – 13:00 . He will be joined by Peter Gunni (COO, Traffic Lab), Sebastian Erfurth (COO, casino.online) and Harvard Lehn (Co-founder, Nordic Affiliates).
