Fortune Lounge Backs Off On Retroactive Affiliate Changes
Published: Friday, September 09, 2005 Online-Casinos.com
FORTUNE LOUNGE BACKS OFF ON RETROACTIVE AFFILIATE CHANGES
Affiliates had no problem with changes going forward, but retroactive decision stirred up a hornet's nest
Another of the companies that sought to impose retroactive changes on their affiliates' contracts backed away from the controversial issue this week, easing a confrontational situation that seemed to be headed for the courts (see earlier Online-Casinos.com & InfoPowa reports)
In a communique to its affiliates, Fortune Affiliates which manages programs for the major Fortune Lounge group of online casinos said that it had reviewed the impact of the recent rule changes over the past two months, and has decided to revert to the commission formula as existed prior to the July 1 change.
"We have been motivated to do this in the interests of maintaining our good relations with the Affiliate community," said the communication. "At the end of the day, relationship benefits are the most important to us."
The switch back will be effective September 1st, 2005.
Fortune Affiliates continued: "Throughout these recent conversations, it is clear that some affiliates are still concerned about the impact that winners can have on their earnings (ie. within one of our brands). We are therefore developing a new model that will be offered as an option to all existing Affiliates along the following principles:
"• Participating Affiliates will be paid 0.6% of their players' total wagering
"• NO COSTS will be deducted e.g. comps or progressive contributions
"• NO DOWNSIDE. If your player plays, then you must earn. There will be no such phenomenon as negative earnings
"Note that due to this model still being in the development stages, the above information is a sneak preview only and not absolutely finalized."
The company concluded with an assurance that any changes introduced in the future, would not be applied to existing players without the buy-in of affiliates.
