- By Gambling Gregory
A phrase should be forgotten.
Sign-up bonuses should be calculated in your "CPA.".
When a player downloads software,makes a deposit and
completes the wagering requirements. Cash them out if they
request payment. It would be different if the player had a history of
charge backs at a sister property.
A player that goes from casino to casino only playing when
there is a nice sign-up bonus is not a problem. Eventually they are
going to run out of casinos. Now where are they going to play. Not
at the casino that refused to pay them because they asked for a
cash out. They will patronize the property that did not treat them
like a thief.
This is not the reason you should forget the phrase bonus
abuse. The only reason,the core of every decision you make How
does this effect "I.P.O.". There is too much money to be made or
lost Not the small profits you think that squeezing from the players.
The real money is keeping those players playing. You are much
better off with large volume and a very small margin. Then medium
volume with a large margin..Even to the point where the larger
volume models (net profit) is only 50% of the medium volume
models(net profit).This is the times we are Internet " I.P.O."
It has been a few years since people have looked forward to
seeing what the next "I.P.O." coming would be All those paper
millionaires made over night.300% ,500% on the first day of trading
for companies that had no revenue Their were no P & E's. Book
value was based on magical formulas by creative accounting
theories that had no historical model to base it on.
The point I am trying to make is their is no historical model to base
valuations for these "I.P.O.'s".(online casinos)
It is a completely different business then it was 2 or 3 years
ago. It is necessary to optimize the books preparing for "I.P.O."
Things like % gross revenue growth Quarter over Quarter have
more significant value. Than % growth of gross profit Quarter over
Quarter.
Another choice item" On going depositing Players " These are
the cream of the crop if you own them outright. A player that has
deposited $100 a month for 8 consecutive months. Cashed out for
$600,still playing every weekend that you own outright (either by "C.
P.A." payed to an affiliate or through your own marketing) may
have a book value as high as $3,000 to $5,000.
Now you tell me where does bonus abuse fit into the "I.P.O."
optimization picture? October issue i will be discussing revising
Terms and Conditions not from a lawyers perspective .From a
theory of optimization. Still cover your ass legally but make them
appear more attractive to investors.
