This article will provide an easy-to-understand explanation of how revenue-sharing commissions work for Queen Casino affiliates and how they are calculated.
How to Calculate Revenue Share Compensation
Revenue Share Reward = Final Accumulated Net Income x Reward Rate
The reward rate ranges from 20% to 45% and varies depending on the number of effective new players per month.
For details on the reward rate, please see “How the Reward Rate is Determined” below.
▶ Method of determining the compensation rate
The higher the number of active new players per month, the higher the reward rate.
If there are no active new players and no reward is generated, the NGR (net profit) for that month will be carried over to the next month.
e.g.) February NGR: $1,000 / Effective new clients: 0 → February reward is 0
March NGR:$1,000 / Effective new clients:3
↓↓
March NGR:$1,000+February NGR:$1,000=$2,000
The final net profit of $2,000 is multiplied by the March reward rate to arrive at the final reward amount.
Once a net profit is generated, it is not wasted because it is carried over to the next month even if there are no active new players for that month.
▶ Win/Loss value (user’s bets – wins) = GGR
*Rewards are generated when users are losing.
▶ GGR minus various fees = NGR
The fees that will be deducted from the GGR are as follows.
- Deposit Fees
- Withdrawal Fees
- Gaming platform fees
- Bonus fees (only for actual bets placed by users)
*If there is a negative carryover, the amount of the negative carryover will also be deducted.
Win Amount – Deposit and Withdrawal Fees – Bonus Costs – Gaming Platform Fees – Previous Month’s Cumulative Net Profit (if negative only)
Final cumulative net profit is based on the player’s win/loss value,
- Deposit and withdrawal fees
- Bonus fees
- Gaming platform fees
- The previous month’s cumulative net profit (only in the case of negative net profit)
The final cumulative net profit will be obtained by subtracting.
For example, let’s say the user’s win/loss value was $436.10.
Subtracting the deposit fee of $3.72, withdrawal fee of $4.80, platform cost of $99.49, and bonus cost of $216.06 all from 436.10, the result is “$112.02”, which is the cumulative net profit for the month.
Calculation method when negative carryover is taken into account
Queen Casino’s affiliate commission calculation includes negative carryover.
Negative carryover is a system whereby if an affiliate’s commission balance is negative, the negative amount is also carried over to the following month.
What is negative carryover?
When a player plays at an online casino and loses, the online casino will earn a profit and the affiliate will be paid.
However, the player’s wins and losses will alternate in the reward calculation period, and the result may be positive.
If the player’s income is positive, the online casino side will have a negative profit and the affiliate’s reward will be a negative balance.
Even if the balance is negative, the money is not deducted from the affiliate’s account, but the negative balance is carried over to the following month.
If the affiliate’s commission for the following month is positive, the figure obtained by subtracting the negative balance from the previous month is the cumulative net profit.
Calculation method when there is no negative carryover in the previous month
If there is no negative carryover in the previous month, the current month’s accumulated net income is directly calculated as the final accumulated net income.
Final accumulated net profit x compensation rate (depending on the number of active new players in the month) = revenue sharing compensation for the month
Calculation method when there is negative carryover in the previous month
The revenue sharing compensation for the current month is calculated as “Final Accumulated Net Income x Compensation Rate”.
The current month’s cumulative net income can be calculated as the final cumulative net income only when there is no negative carryover in the previous month.
If there is a negative carryover in the previous month, the final cumulative net income will be “the current month’s cumulative net income – the previous month’s cumulative net income (only in the case of a negative carryover).
