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How Do Online Lottery Agents Make Their Money? Please Don’t Tell Anybody!

How Do Online Lottery Agents Make Their Money

Everybody Needs Some Money

Without them online lottery wouldn’t be the same. Online lottery agents are a necessity. They make playing the lottery convenient for all of us. Instead of having to register every single lottery I play individually I just need to register once and play what I want as much as I want. But, what’s in it for them? How do online lottery agents actually make their money? Today we will take a look at the various ways online lottery agents earn their money. And you think they do it for free? Like they are some saints who just want you to have an amazing time playing, your favorite lotteries from the comfort of your home? Boy, you were wrong. Without further a due, let’s jump into the details.

Their Own Share of the Pie – Fixed Commission on Sold Tickets

So you as an online lottery player register, you deposit, you buy tickets, regardless of the outcome of your ticket the online lottery agent earns a fixed commission on each ticket sold. Before you jump into wild conclusions like “I should become an online lottery agent myself!” I urge you to calm down. First and foremost, this commission is usually in the one digit area, most often between 5% and 10%. The commission varies depending on the lottery provider. Some lottery providers need to compete with the already well-established market and must offer higher commissions to have lottery agents offer their tickets to their big customer base. Smaller lotteries may offer a commission of up to 20%, but this says a lot about the return to player factor. Most likely the prizes will be low therefore it will be unattractive to lottery players. Once I did the math due to the higher turnover online lottery agents make way more money from popular lotteries with lower commission than from unpopular lotteries with higher commission. Then again exceptions may occur.

Online Lottery Agent’s 2nd Share of the Pie – Bonus on Winning Tickets

Well, I said earlier that a lottery agent will earn some money regardless if you win or lose. However, if you win and I mean win big time the online lottery agent is treated with the same treatment by the lottery provider. Because they sold the winning ticket and with the purpose to motivate them to sell more tickets the online lottery agents is treated with a bonus equal to a percentage of the prize. For instance, if I was the online lottery agent who sold the winning ticket for the recent $1.5b Powerball Jackpot I’d earn roughly $75,000. What will this do to me? Well, the chances of selling a winning ticket are rather low, especially for the Powerball, but I’d certainly feel a lot better and would work harder to sell more tickets.

Some lottery operators may offer fixed bonuses such as $10,000 for selling a winning ticket beyond a certain prize threshold. It’s easy to come up with a conclusion that lottery operators take good care for their trusted lottery agents.

CPA Payment Schemes – One Time Payment for Every New Lottery Player

This revenue channel is different than the previous two. Lottery agents have come up with a way to sell more tickets without putting more effort, but at a small price. For example, you are the lottery agent that’s affiliated with the lottery operator and you earn the commission and the bonuses. Now, I am your affiliate. I will work for you; promote your activities and the lotteries you offer. You will pay me. Bear in mind, I’m still considered to be a lottery agent.

CPA deals or cost per acquisition are one time payments to the person who referred the lottery player to the senior lottery agent or in some cases directly to the lottery operator. Depending on the quality of the players a special CPA contract is negotiated, including the fixed payment, minimum deposit the player should make in order to qualify for the program or any other conditions that might be subject of negotiation. Some affiliates or lottery agents prefer this approach. It has its own pros and cons.

You Probably Didn’t Expect This – Advertising Lottery Operators

Google changed the way how businesses advertise. Their model has been copied more than you can imagine. The lottery industry is not an exception. Since the people who would visit a lottery agent are already into lottery a lottery operator promoting itself and putting ads there is absolutely reasonable and in most cases rather effective.

It’s as simple as you think it is. The operator will target a very popular lottery agent; negotiate the price and the advertising space. By advertising the lottery operator will attract more players, therefore benefiting from this deal. On the other end the lottery agent generates additional revenue just by putting some texts, some images or some banners on its website. It sounds lucrative, doesn’t it? Well, it is. However, in order to reach this level you’ll probably need several years of great performance, high traffic, good reputation, excellent ratings and excruciating hard work.

You reap what you sow and in this case you reap some easy revenue by doing what you love the most, writing about lottery and promoting lottery operators. Yes, let that sink in for a moment.