Is Cheap CPA Costing Operators Better Players? | Prash Patel
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In Episode 78 of iGaming Real Talk, Surya speaks with Prash Patel, Founder of DMR Strategic, about how the relationship between operators and affiliates needs to change as acquiring players becomes harder and more expensive.
Prash has experience on both sides of the relationship. He previously built and sold an affiliate business and has also worked on the operator side. One of the biggest mistakes he sees is operators treating every affiliate and traffic source in the same way. SEO, PPC, social, streamers and communities all work differently, with their own costs, audiences and business models.
The conversation also questions the industry's focus on cheap CPA. Prash argues that acquiring a player for less money does not automatically make that player more valuable. An affiliate that looks expensive initially may deliver players who generate far more value over the following months. For him, operators need to decide whether they are building around short-term acquisition costs or longer-term player value.
Another major topic is communication. Prash says affiliates are often treated simply as traffic sources, with little personalization or understanding of how their businesses work. He believes stronger operator and affiliate relationships will become increasingly important as quality traffic gets harder to find.
The episode then moves into AI and what it means for affiliates. Prash believes AI has made it much easier to launch websites and produce content, but that also makes it harder to stand out. His view is that trust, brand, personality and community will become more important, while the strongest affiliates will use AI for localization, personalization and translation rather than simply generating more content.