“The strength of our network enables us to achieve better pricing from various external providers”
Was published at EGR magazine / October 2017 issue
With the sharing economy continuing to redefine the online ecosystem, companies such as Uber, Airbnb and WeWork are expanding their global footprints. Having initially succeeded in disrupting a wide range of legacy industries, many of these upstart companies have now established themselves as mainstays of their respective sectors. However, they continue to capture the public imagination through media coverage that seldom stays confined to the business section.
At Aspire Global, we believe that what works in the real estate, transportation and office space sectors can also have a major impact on the iGaming industry. Essentially, sharing resources and profits for mutual benefit is, ultimately at the core of everything we do.
Leading B2B providers in the iGaming industry offer their white label customers both platform packages and various levels of support services, such as CRM, legal, and BI.
Aspire Global, on the other hand, offers its partners a complete, full-service solution for launching and operating a successful online casino. Partners gain access to our proprietary, turnkey platform, which includes all the technical, operational and regulatory features that define a cutting-edge online casino operation, to achieve optimal retention rates and maximum profitability.
Standard revenue models
There are currently three main revenue models in the iGaming industry – the advantages each of them offers to operators depends largely on the size and growth strategy of the client’s business.
Fixed fee on services: with this model, the B2B provider calculates charges to its WL customers according to fixed amounts for each of the services it provides, including core platform operations, customer support, games, and payment processing.
Mark-up: the B2B provider charges its WL customers for all the different third-party service elements it offers. These charges are based on the provider’s own costs, with the addition of a substantial mark-up for each additional service.
Rev share: this is where revenues are divided between the B2B provider and its WL partner. A revenue share model aligns the incentives of the B2B provider and its client, and provides an upside potential for the B2B provider from each partnership. In others words, the provider’s profits are tied to the client’s success.
The Aspire difference
We are confident that our pricing model is unique in the industry. After analysing data from across the sector, we’ve created an innovative structure that is designed to marry the interests of our partners with our own in a way that’s fair, flexible and totally transparent.
Conceived as a hybrid model, our approach keeps the mark-up on third-party services to a low level, while increasing the revenue share element of the partnership.
We believe that we have attained a true competitive advantage with the low mark-up we charge for third-party services. There’s no secret to achieving this. The strength of our network enables us to achieve better pricing from various external providers, based on the volume of business that Aspire brings to the table.
Our primary source of income is the revenue we share with our partners – when their casinos are successful, Aspire Global also profits. We therefore believe that this partnership arrangement is ideal, since all parties’ interests are fully aligned.
Apart from the economic partnership, Aspire Global’s complete iGaming solution allows our partners to focus on what they do best – marketing – by handling all other aspects on their behalf. This kind of cooperation is possible only when a true partnership, as opposed to a traditional provider-client relationship, is formed.
At the core of these partnerships is our dedication to giving all partners direct access to Aspire’s professionals, across the full range of fields of expertise. These are people who have gained extensive experience from running our proprietary brands and offer unique insights into both the operational side of a casino business, as well as the evolving demands of players in a highly competitive space. Constant communication, complete commitment and blue-sky thinking are all key to our collaborative philosophy.
By sharing knowledge and ideas, and through an original approach to pricing, Aspire Global has demonstrated that shared success is the most productive way forward for the new generation of online casino operations.
Motti Gil joined Aspire Global in 2016 as CFO, with over 15 years of financial and business management experience, overseeing all financial and legal activities of the company. Prior to Aspire Global, Gil has held senior roles in a number of technology enterprises, from start-ups to public companies.