I am very curious how the DFS industry plans on finding new players or fish for the football season. There are basically three ways to bring in new players. Interested to know what the more experienced people think.
1. Mass advertising by the companies themselves. Undoubtedly the companies will spend money but it will pale in comparison. 2 years ago DK was looking to become a household name and with the tens of millions on spend they became one. I truly think all sports bettors, fantasy players, and any one else who frequents a sporting event already knows of DK. How will this spending be effective this year on bringing in new players? I can only imagine the cost per acquisition was very high in the past and might be even higher now. Do you think the mass tv, radio, and corporate partnerships will be enough to bring in new players?
2. Affiliate marketing. I know many say that paying affiliates leads to higher rake but I see it the other way. Without affiliates bringing in new players then you would have less new players. Companies pay no money out of pocket for acquiring customers so I think affiliate marketing is a very beneficial way to bring in new blood. When you look at the big 2 though who the heck would want to be an affiliate for DK over FD? They max out the monthly capped at 1k per player which dissuades powerful affiliate marketers from cultivating whales. FD affiliate program is way better. I think FD should sweeten the deal as I think they would dominate this fall building new customers via affiliate marketing. What are your thoughts as to whether affiliate marketing is still a great way these companies can depend on to find new players for football season.
3. The refer a friend business. FD has an awful refer a friend model. I would be shocked if they get more than a couple hundred a week this way. Really no incentive what so ever for those with a big circle of friends to get new players as 10 bucks per pop is not worth anyone’s time. DK used to have a great referr a friend program until they took monthly commissions away and promised a better program that would be more top heavy. Of course it was more hot air from DK as the refer a friend program is just as bad as FD. A few months ago they had a contest for referrals that over the course of a week only had like 300 people in it which showed how “effective” the “new and improved “ refer a friend has become. I don’t understand why DK changes it up every week. Any big marketer will pass on this as they move the goalposts all over. One week it’s a minimum 5 dollar deposit, next it’s 10, next it’s 25. And now for way less. Seems to me the smart decision to get more new blood would be to just pick one offers and stick to it. I just think both of these companies fail with their refer a friend programs and are missing out on a cheap way to get customers with unflattering programs.
Out of these 3 avenues which do you view as most effective to bringing in new blood. I think the smartest way for these businesses to expand is actually by enticing big affiliates . I look at it as I would rather pay nothing up front and 30 to 40 percent in commissions opposed to paying out nothing on no new customers. Hopefully this year some new blood plays this great game. I will be fascinated to see how and if they do. I would say DK is stronger in their advertising potential but weak in the programs they offer to build out things that are more cost effective in their worse affiliate program and their ruined refer a friend program.