Episode Transcript
[00:00:00] Welcome everyone. And let me just share with you how usually client asks for a new license because there are some ideas that I want to share with you. So the dialogue usually happens like this, like, hey, I need a license and I'm going to do, you know, the business in Asian countries or in European countries. And then I'm trying to understand like what country specifically are you going to do business in. And then the client says something, something like, well, we'll cover like five countries in Asia, something like China, Thailand, Indonesia, Malaysia and India.
[00:00:39] And also maybe, well, we'll cover, you know, Europe partially, maybe Germany and maybe Spain.
[00:00:44] And well, hopefully we can also target United States.
[00:00:49] So what are they saying is that they will be working everywhere. So I want you just to think about that because no one works everywhere. No one succeeds if they try to succeed everywhere. Because it all comes down to how much resources you have and whether or not you are actually cash flowing right now.
[00:01:09] So since most of the businesses that are getting the license, they have zero of cash flow, they are just starting, they are building their teams and you know, the idea is that they want to work everywhere. Well, I know one company that works everywhere, that's Coca Cola. And they have plenty of cash flow, they have plenty of capital, and you know, they build business for dozens and dozens of years. So now what is bad about building business everywhere? So let's imagine that you have an eight people team, right? So you are trying to do business and you start with India and then you say, listen, we want to also cover Malaysia, Indonesia and, and go to Europe, to Spain and to Germany. So what happens is that you are just spreading yourself so thin that your team doesn't have any significant chances to push as hard as possible and to invest as much effort as possible into making one thing that actually works. So here you have your marketing budget and here marketing team decides, okay, I, what we gonna do in order to make this market successful, right?
[00:02:20] So the thing is that they have to test different funnels, they have to test different mediums, they have to understand what medium, what funnel, where is the best to drive traffic. They have to scale it. And when you're saying like, listen, we're gonna cover the entire planet, well, what they have to do is they have to translate everything. They have to translate their funnels, they have to translate the site, they have to provide different offerings to different markets, which is also very unique because, well, in different, different markets, different designs, different copy, different offerings that work. Even if you like take just simple Asia, then different Asian countries will be Very different in terms of what's working on these in these countries. Because of the culture, because of the difference, like cultural difference, because of the market development in how far they are with the industry overall, what games do they like? So all these things, they have to be considered. And also customer retention system. So here we come to emails that your clients will receive, calls, messages. So all these things, they have to be translated, they have to be adopted to the mindset, to the culture.
[00:03:38] This entire thing is huge.
[00:03:41] So, you know, when client tells me something like that, I know that we have to, you know, do the reality check. We have to understand how big the team is. And if the team is, you know, like 5, 8, 10, 12 people, then we have to do some mindset work here because it's just, you know, it doesn't make much of a difference to go there or not to go there. Because in most of the cases, 99 out of 100 and our client will just fail.
[00:04:10] So, okay, so here we have. We understand that we're gonna take one market. Let's focus on one Asian country.
[00:04:19] And why Asia? Well, because this is a growing market. If you compare, like Europe, if you compare Europe versus Asia versus North America versus Latin America, then you deal with completely with four different markets. And going in Asia is just smart because of the regulations in, because of the law. And it's going to be way more effective and way cheaper to start the online casino in Asian countries other than trying to, you know, capitalize in European countries that are very regulated. And you know that licenses, they have all different licenses. So every European Union country have a different license. So you would need to acquire every license in order to do business in that country. And also the compliance level is huge. Something that would Normally take you two, three months, will take you simply like six to 12 months. It's a completely different investment. It's a completely different approach.
[00:05:22] Right.
[00:05:23] So going to Asia, usually what I have, you know, the conversation with clients usually continues on. Okay, what should we focus on? Is it the sportsbook? Is it the slots? Is it the table games like baccarat or poka? And the truth is that, well, even though there is, you know, there are specific games that are successful on the market. So usually those are card games.
[00:05:51] But currently the trend shifts towards what is popular anywhere else. So people like this diversification. So they accept slots and they enjoy slots. But because of multiple variations, slots allow people to win in many different ways, provide tons of bonuses. So people like to be engaged and people like to experience that the feeling of Entertainment is way higher than with something that is default, something that is standard within the culture. And it's also very easy with slots, because as an entrepreneur, as a business owner, you want to understand how much money you will make, right? So sometimes it's really difficult to calculate, sometimes the margin is really low. But with slots it's very easy because the rtp, which is the return to player, is already predetermined.
[00:06:45] It's already figured out by the software provider. So teams that are building games like Netent, like Isobat and so on and so forth, they already define what the RTP is. So what the RTP is, normally that's somewhere between 90 and 195 and 100 in most of the cases.
[00:07:06] So this is basically the return to the client. So if your client bets with you 100 bucks for long term, then you will pay him back 95, because your RTP is 95. So if all of your clients, they bet, for example 10 million, then over the long period of time you will return back 9,500,000. So you now know the margin, which is also GGR, that is your 500,000 and this is 500,000 you can use to pay off salaries to use in marketing and also to pay off to your beneficial owners and to reinvest in the business. So it's very simple. You don't have to calculate a lot. You, you know, RTP of 92 will return you 800,000 on every 10 million in what people bet with you. And the only way how to achieve that is actually by hiring good people, because you cannot achieve these numbers if you do something alone. So only Wolf model is not, you know, the model in this business you want to have a team, you want to have a team of professionals.
[00:08:17] And key positions that you want to have are your project manager, this is going to be the team leader. He has to understand the business, different fields of the business. He has to understand marketing, he has to understand the product, he has to understand customer support and critical elements of everything just to run your business, to drive it. Otherwise you know, it will be a chaos and no one knows what they do and what direction they go. Now the second person is the marketing. So this can be one person, two people. It's going to be a team, so it can be a chief marketing officer, but let's say that's a marketing team that you have in place, your SEO and pay per click experts that will actually test different marketing strategies, that will test different funnels and different mediums. And the work of these People you will then use to make your decisions, how to move your business forward, how to grow your business.
[00:09:17] Now the next person you want to have is the payment manager because it's really important to figure out how your clients will get paid.
[00:09:28] So we will speak about transparency just in a minute. But transparency comes down and good experience comes down to payments into payouts. So payouts. What I mean by that is that when people want to receive money as they just invested their time and money in the received experience from your casino is that you want to make sure that they get paid immediately, they get paid on time. So the work of this payment manager is actually to figure the system, to figure the model that will guarantee that your clients are happy at all times are and to follow all that, to follow the experience, to follow that your affiliates are paid on time. So to do everything that is related with payments.
[00:10:14] Otherwise it's very difficult to provide any good experience. Right? Another person is the product manager. So the person who is familiar with different offerings on this market. So if you launch for example Malaysia, then the person has to know everything about Malaysia. Perfect one, it's perfect when he has relationships with different software providers, he has relationships with different operators because he can actually well provide you with information that is working right now from the branches.
[00:10:47] So he doesn't have to wait for long. He will be crafting different offers for different markets for your marketing team. So this way you can get the success in as fast as possible.
[00:10:58] Now what all that means to you, all that means that you will be building credibility because generating 10 million in bets and getting yourself 500,000 is only possible when your clients are happy. And the credibility is the key success, you know, to long term business.
[00:11:18] Because credibility means multiple things. Credibility means that you do payouts on time. Credibility means that you have a customer support that will help with all the questions that your clients have right now. Not like in two days or like a week that they have to wait or send multiple questions via email, but actually here on chat and on spot, right? Another thing is that while you are transparent on how you do things, if you require KYCs, then you have to mention that you in your terms, if you do not pay out more than, Well, X amount, for example more than 50,000 with free spins, then you have to mention that in your terms and you have to be open about that and you have to help people at all times just to gain the credibility. Because guess what, you are just the same as 100,000 other sites. So you know, it doesn't matter where Your client will go, he will almost get the same offering everywhere. You, you know, the things that changes are the design and the experience. So people have to really trust you, they have to invest in you. And once they, you know, receive that full feedback loop from your business, when they invest money, they have some experience, they get back money. It's only then that they will trust you and they will come back.
[00:12:38] So this gesture is the best one. When we speak about the credibility as they come back, the this is the returning client and this is how you will be generating 10 million in volume in bets from your clients. Right? There is no other way in the profitable, there's no other profitable way how to do that. If your clients are unhappy, you will lose them. Now two more things where you get the software how to do business on Asian market. So the first thing that you will need is the software providers and you will need platform provider, right?
[00:13:13] So you know, it's always about relationships, how you can build relationships that will be beneficial for you and for your business. So for example, if you do good with Asian software providers, go to Asian software providers as they will also compete, you know, between themselves and you will get a better deal. But getting better deal does not always smart because you want to have that guy who will come back to you and will say, listen, we have these new games because you don't want to be the one that sits there when the competition launches new games and tests new games. Sitting there with a provider, with an aggregator that doesn't do that. You want to know what's happening, what's working and you can do that by building relationships only the same with the platform. There are multiple options available, both in Asia, both in international market.
[00:14:02] I have all this list of over 50 platform providers on the site. We build it specifically for you. You can download it for free. The link will be below. So really think on in terms of okay, well what is the offer, how much will I spend and what relationships do I build with these people? If they don't reply to you for 24 hours or 48 hours, you know, maybe they're not good people to do business with because sometimes you need your answers right here on Spot. Now more about relationships. Relationships are really important. This is something that is really underestimated and this is something I believe people do not speak enough because in this business you cannot be successful long term without building relationships. So let me give you an example. So I have a person right now coming to me and saying, listen, what we need is payment system provider and we are not happy with this particular payment system provider because, because they are too big, they don't have time on me and. Or because they just provided me with three solutions that do not work and we spent like two months of time in nothing. So you see, the key is building relationships. Because if you do not build relationships, you will still be getting offers. You will still be, well, thinking that you are doing the best that you can. But when you have these relationships with people, you know, the same salesperson, the same, same manager, he will get back to you and say, listen, this is not the best because you will waste three months, you know, wasting your time trying to connect these payment system providers. Well, would you maybe consider this an option? Yeah, it's kind of, you know, it's probably a little bit more expensive, but we can do this in a month. So this is what you need. And this is what I mean by building relationships, right? It also means like, well, listen, the license that we can get, we can get everywhere. But someone will not ever tell you that it can take 12 months, it can take different license for your business model or different other things. You will only know this after you pay, after you get sold. So building relationships is really important.
[00:16:14] Make sure that you visit some events. I already had a video on this topic. You know the biggest event events out there. London, Ice in, gambling industry, igb, Amsterdam, Sigma Malta, Sigma Malta is going to be this year, winter time or autumn time. So make sure that you are there, that you are building relationship with people that you want to do business with and that you keep relationships warm. Right? Always at all times.
[00:16:41] So this was Max and I wish you a good day. If you are looking for more information, click a link below. We will be happy to help you with the license. Curacao, Malta, Kennewaki, Isle of Min or with any other questions that you might have. Have a good time and enjoy your day by.
