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Online gambling exec on how to succeed in the industry
Posted 3/3/11 : Peter Karroll, an experienced online gambling executive and CEO of the IAM Corporation, authored an article in the publication B2C Marketing Insider this week, claiming that when it comes to corporate success in online gambling, the Pareto principle applies - 80 percent of the wealth is earned by the top 20 percent.
Karroll reminded his readers that for every success story there are dozens that fail miserably, taking investment dollars down the drain with them. To avoid these pitfalls, he gives a few broad guidelines for aspirant internet gambling multi-millionaires:
* Ensure there are staff members experienced in online gambling operations, or consider white label options where knowledgeable people are managing the enterprise. "Cardinal Rule: You need to be able to solve analytical math problems to really understand if the bonus you are offering is going to make your month or break your bank."
* License the best gambling software; although initially it may prove more expensive, in the long run it will deliver better all-round value.
* Again, experience and talent is the key when it comes to marketing the offering, especially in the online environment. Ensure that the right manager is on board to achieve this. Karroll notes that before going to offline marketing, operators should have fully exploited online opportunities because the most receptive audience is primarily online. And he cautions that results are not always immediate.
* Customer service is critical - “Without great customer service you will fail,” Karroll warns, emphasising how important referral 'word of mouth' publicity can be in multi-channel and often social networking that makes up the online environment.
* Fast and efficient payment processing.
* Only do business where it is legal so to do.
* Patience - ensure that investment in the business, especially in the points above, is carefully considered and well planned. "You need your money in the bank so you can last into year two and three, and if you are jaded enough to be able to cut the really tight deals and hoard your bankroll then you may last long enough to be the next online gambling empire with a license to print money," he writes.
Karroll can speak with some authority; his company is an independent marketing firm specialising in the online gambling sector. IAM Corp’s customers have generated over $1 billion in revenues internationally, he claims.
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