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Q: How to make money with online games using massmailings? ( Answered,   7 Comments )
Question  
Subject: How to make money with online games using massmailings?
Category: Business and Money > eCommerce
Asked by: rogz-ga
List Price: $200.00
Posted: 05 Nov 2002 14:03 PST
Expires: 05 Dec 2002 14:03 PST
Question ID: 99708
How to make money with games (gamesserver) on the internet by using
massmailings? I am able to send you 5 millions double optin emails per
day.

Clarification of Question by rogz-ga on 05 Nov 2002 14:18 PST
How to make money with games (gamesserver) on the internet by using
massmailings? I am able to send you 5 millions double optin emails per
day.

And who can supply professional solutions 'out of the box' with the
latest games for the US and EUROPE market in english and german?
Answer  
Subject: Re: How to make money with online games using massmailings?
Answered By: belindalevez-ga on 13 Nov 2002 01:38 PST
 
<There are a number of ways that you can run games and make money.
Clearly your mailing list of 5 million names will give you an
advantage in attracting customers. Gambling games will give you the
biggest profits. Online gaming is a growing industry. There are
currently approximately 1400 online casinos that generate $3 billion.
The advantage of  the industry is that profits are guaranteed as they
are built into the payout odds.

The following methods can be used:

Owning your own casino.
Setting up your own casino is a huge capital investment that costs
millions of dollars.

Licensing.
Casino software companies sell or  license their products this costs
between $20,000 - $40,000. In addition a royalty is also charged. The
royalty fee charged may be between 10 and 30% of your profits. If you
live in a country where casino online gaming is allowed, you will need
a business license. If you live in a country where online gaming is
not allowed you will need to set up your business offshore. It is
common for many online casinos to be set up in Aruba in the Caribbean.

Sub licensing.
If you take out a sub-license you don’t need a business license or a
software license.
Casino operators provide sublicenses that cost between $5000 and
$50,000. Royalty fees range from 25% to 70% of your profits. It is
even possible to find a fairly basic sub license for as little as
$500. This service is offered by companies like owncasinos.com. They
sell franchises from $499. One of the advantages of sub-licensing is
the lower costs and fewer formalities. It’s possible to buy a package
and have it up and running in 24 hours.

Affiliate program.
Most casinos run affiliate programs. They are free to join. The
programs pay between 20 and 50% of net gaming revenue. The advantage
of using an affiliate program is that it takes little work on your
part. You can promote the casino through your direct mailings. Some of
the best programs to sign up to are the big names like Casino Atlantis
and Ladbrokes. These casinos are licensed in the Isle of Man which has
a very strict licensing procedure. Their accounts are independently
audited so you can be sure that you are fairly treated. They are also
required to deposit £2 million with the licensors to guarantee payouts
to their customers.

Assessment
Take extreme care about who you do business with. There are a lot of
unscrupulous operators. Lot of web sites publish blacklists of dodgy
operators. A link is given below to such a black list. However it can
take time for information to filter through to the publishers of
blacklists. For more up to date information you can take a look at the
gambling forums. Customers who have problems with a casino will often
post to the forums.

When selecting a casino, things to consider are how long a company has
been in business and the sort of reputation that they have. If someone
has been operating for a long time and has built up a good name they
are more likely to be trust worthy.

It is also important to carefully compare the various packages offered
as there are often huge differences. There is a huge variation in the
initial costs and the royalties charged. You will also need to ensure
that your software is perceived as being fair from your customers
point of view. If your payout odds are too low, you will not receive
good reviews from web sites that make recommendations about casinos.

Marketing
To attract players most casinos offer:
1. Players the chance to play the games for free.
2. Bonuses for signing up – typically $50 worth of free chips when
they deposit a pre-set amount of money.
3. Bonuses for referring friends and family.
4.Free entry into prize draws where they can win casino chips.

Software
The leading software suppliers are Boss Media, Starnet Systems,
Microgaming and Cryptologic.>


<Additional links:>

<Licensing providers.>
<http://www.operatecasino.com/licensing.html>

<Sublicense providers.>
<http://www.operatecasino.com/sublicensing.html>

<Casino affiliate programs.>
<http://www.casinoaffiliateprograms.com/>

<Comparison of casino software.>
<http://casinoterry2001.tripod.com/>

<Casino software reviews>
<http://fastodds.com/softwarereviews.htm>

<Own Casinos.com>
<http://www.owncasinos.com/signup.phtml>

<Operate casino.com>
<http://www.operatecasino.com/>

<Casino Atlantis Online>
<http://www.casinoatlantis.com/>

<Ladbrokes Casino>
<http://www.ladbrokescasino.com/home_frameset.asp>

<Casino checker –blacklist>
<http://www.casinochecker.com/online_casinos/blacklist/>
<Gambling forum>
<http://www.gambling-forum.com/>



<Search strategy:>
<"own online  casino">
<://www.google.com/search?q=%22own+online++casino%22&hl=en&lr=&ie=ISO-8859-1>

<casino software reviews>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=casino+software&as_q=reviews>

<casinos blacklist>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=casinos&as_q=blacklist>


<Hope this helps.>
Comments  
Subject: Re: How to make money with online games using massmailings?
From: funkywizard-ga on 05 Nov 2002 14:06 PST
 
have a gambling component to the games. offer them for free, but allow
players to bet ficticious "points" (which cost money to purchase) on
wether or not they will beat an opponant. No matter who wins or loses
the bet, you take 20% or so. Get them interested with the free games,
then make them want to bet on them.
Subject: Re: How to make money with online games using massmailings?
From: rogz-ga on 05 Nov 2002 14:22 PST
 
@ funkywizard-ga

That was fast!! :-))

Do you know who is providing complete solutions out of the box?
Rogz-ga
Subject: Re: How to make money with online games using massmailings?
From: funkywizard-ga on 05 Nov 2002 14:33 PST
 
unfortunatly I do not. However, one website doing exactly the same
thing I suggested is partnered with yahoo games [
http://www.worldwinner.com/cgi/yahoo/frameset.html ]. You may need a
yahoo login to view that page, but here is one that doesn't require it
[ http://www.worldwinner.com/ ]

Basically I am suggesting you copy their main idea. However, when I
tried their website, implementation was pretty poor. It costs money to
join a game, and you get charged even if you never sucessfully join a
game. Luckily I was working with a free trial.

Not sure exactly where you could find this sort of solution "out of
the box" however, sorry.
Subject: Re: How to make money with online games using massmailings?
From: rogz-ga on 05 Nov 2002 14:50 PST
 
..ok, thank you very much sofar... I will check them out :-))
Subject: Re: How to make money with online games using massmailings?
From: mathee-ga on 15 Nov 2002 12:45 PST
 
Actually, the online casino industry have been doing extremely poorly
since a bit over a year ago.  People may tell you about the gross
revenue that the casino businesses raise but that's actually only from
a few concentrated businesses and most of that revenue comes from
selling sublicenses to people who want to make money.
Majority of online casino businesses that start up, and when I say
majority, I mean almost every online casino business, fails.  I quote
an analyst who said that starting an online business after 2001 would
be like "gambling your entire investment capital on another casino
hoping to strike rich".
The customer has the right idea; there are many online games that make
money and there are out-of-the-box solution providers...but its not
gambling or casino.  Its with actual real games that people play, as
the customer implies.
Every internet marketer, consultant, etc I've spoken to have advised
VERY strongly against starting an online casino business; one of them
actually laughed thinking that I was making a joke.
I have been on the similar situation as this customer and have found
the actual answer; but it is definitely not an online casino.
Subject: Re: How to make money with online games using massmailings?
From: rymac-ga on 17 Feb 2005 09:05 PST
 
rogz-ga, this reply is super late, but if you are still searching for
solutions, i would agree with mathee-ga, starting your own casino is
challenging without a large investment (both financial and human).
Finding an 'out-of-the-box' solution is risky in terms of player
acceptance - you never know how ppl will react to new products.
However, if it is revenue you are search to generate,  belindalevez-ga
described some solutions that are successful. I have tried quite a few
products, including OwnCasinos, multiple Affiliate Programs, and more.
Recently I have found my match with a service titled Network Partner
that is offered by a relatively new casino affiliate program - Earn
United - www.earnunited.com/private_label.html. Basically, the system
allows you to maintain your brand (important in my case) and promote
casino and poker to your customers (or email database) to generate
additional income from your current assets. There are no upfront
costs, so it is easily testable... might be the right solution for
you. No German though :(
Subject: Re: How to make money with online games using massmailings?
From: whoami-ga on 09 Mar 2005 23:32 PST
 
One of the keys is to host the site offshore (assuming you are in the
USA). Another key would be to find a host that does not allow spamming
but would allow mass mailings that are opt-in; not all providers allow
this. No doubt you will receive at least a few spam complaints even if
your lists are opt-in, as some people will forget they signed up, or
wonder where you got their email address, even if they signed up
themselves (or their family member did). One such provider that offers
offshore web hosting, dedicated servers, and colocation is Zentek
International (http://www.zentek-international.com/). If you are only
engaging in an affiliate program, then you can probably get away with
just offshore web hosting, but if you are actually going to be running
gaming software (which usually requires root on a Linux server or
Administrator on a Windows server) then you'll need an offshore
dedicated server instead. Another option is offshore colocation, which
is where you pre-install the gaming software on your own server and
then ship off the server to the provider. You might want to make sure
the provider has been in business a long while, as there are plenty of
shady offshore providers that are fly-by-night. This is especially
important if you get an offshore dedicated server or offshore
colocation because the provider is probably thousands of miles away,
and you would have little recourse if you shipped a server off to a
fly-by-night company and they disappear suddenly (which happens
regularly). Another important thing to look out for is to make sure
the provider has 24 hour support, as no doubt the offshore location
will be in a different time zone so 3pm for you may be 3am for them.

Hope this gives you a few tips to consider.

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