Diversifying your Affiliate Offering

We have all sat down at a restaurant and ordered a soft-drink (e.g. 7UP) and have been told that the restaurant only offers the competitor (Sprite). We generally say ‘no problem’, and happily enjoy our meal, chug our drink and think nothing of it. Yet, there is a small percentage of people who decide to cancel the soft drink as the brand offered does not appeal to them which translates as lost revenue to the establishment they are eating at.

This type of scenario often occurs within the online gambling sector, but with casinos, poker rooms and bingo halls, rather than soft drinks, with the affiliate losing out on potential revenues earned.

Although there may be specific cases where an affiliate needs to limit the offering on their sites – such as when their offering is a certain software or a very targeted site (i.e.Bestxwyzpokerbonus.com) – there is always room for portfolio diversification and it’s in every affiliate’s best interest to make sure they have the right balance of product/service diversification in their affiliate offering. Here are some of the reasons that affiliates should really start taking portfolio diversification seriously as those who do, simply make more revenues.

Increase revenues

Studies have shown that a vast majority of online accounts with multiple brands enjoy playing their favourite games with multiple software providers. This said, affiliates want to make sure they are taking every step in earning revenue for each gaming account a player opens, and this means making sure they have an effective offering of quality gaming products.

Spreading risk

Promoting one brand or only one gaming group may not prove to be the best risk management strategy as the affiliate’s entire cash flow is dependent on that one source of income; should anything happen to disturb cash flow, the affiliate is likely to take a hit. Offering more products, as well as promoting more than one gaming group or affiliate program, better protects affiliates from the seemingly common cash flow and payment issues that the gaming industry is subject to.

Build customer affinity

The best kind of player is one that returns to the affiliate for more offers. Having a rich product offering gives players a reason to return to a website or open a newsletter as they know that the affiliate site gave them a legitimate gateway to the gaming site of their choice and when they want more, affiliates who have more to choose from, earn more revenues.

Be the master of your domain

OK, Seinfeld jokes aside, this issue should be taken seriously as newer affiliates need to realise that being an affiliate is being a business owner. What you put in is what you pull out and one need only look at the successful affiliates within the industry in order to see that each and every one of them dedicates time, effort and interest in not only diversifying their product portfolio, but choosing the best possible products to offer to their users So, affiliates need to take charge, check each and every program to know what to offer and, most importantly, take a calculated approach to making their affiliation efforts as effective as possible.

Choosing the right strategy

Portfolio diversification is not entirely black and white as there are many ways an affiliate can choose to build their portfolio. Everything from offering multiple brands, multiple software providers and multiple verticals must be considered when building the proper organisational infrastructure and long-term acquisition strategy.

Affiliates need to properly assess their strategy, as unexpected issues may arise that could increase costs and ultimately decrease potential revenues – it may be difficult to target the traffic needed to get results as the entire affiliate operation and product offering is too vast to optimise effectively.

Ultimately, the most common challenge that affiliates face when trying to offer different products to the end user is trying to figure out how many products to offer as not to over-saturate and over-diversify the total product offering. This can be difficult, especially for newer affiliates, but with a bit of patience of process, one can optimise the amount to get the best monetisation results from their product offerings.

It’s all about maximising earnings potential

At the end of the day, affiliates who diversify their portfolio, diversify their earnings; so make sure that you are one of those affiliates who has taken every step in order to earn better revenues from your hard earned efforts.