Industry newcomers often find the get-rich-quick industry confusing; either feeling that there is information asymmetry or that the industry barriers are high. As a veteran with over a decade of experience in the industry, I will explain the ins and outs of this industry with a single diagram, allowing you to quickly understand the various roles within the industry and their relationships, as well as their main profit models.
Mastery depends on the individual's effort. To excel in the get-rich-quick industry, one still needs to observe carefully, learn, and engage in extensive practice. This industry always rewards those who work hard.
1. Industry Structure
The get-rich-quick industry can be likened to a football team, which generally consists of:
Logistics: Responsible for supporting the team in matches; logistics include coaches, scouts, medical teams, nutrition teams, etc., aiming to provide the best training conditions for the players, enhance their abilities, and achieve the best results for the team;
Players: Responsible for competing; after improving their skills, players compete to earn honors or more money for the team;
Fans: Responsible for consumption; fans consume the matches, and without fans watching and spending, the matches would be meaningless. A specialized marketing team is responsible for organizing fans to watch the matches.
With a basic understanding, see the diagram below:
Industrial Upstream and Downstream Structure Diagram
2. Detailed Industry Explanation:
The industry is similar to a football team and generally divided into three main parts:
Support Part (Logistics):
Data Providers: Provide basic data support to game developers, generally divided into sports data suppliers and lottery data suppliers. For example, a sports betting system (a type of game developer) relies on data providers to accurately inform about match times, current scores, historical contributions of teams and players, and historical encounters between two teams. Lottery data suppliers provide the sources of lottery results for lottery betting systems from various countries and types;
Profit model: Charge game developers a fixed monthly or annual fee
Game Developers: Responsible for developing games, mainly divided into sports games, lottery games, live games (series with live dealers online), electronic games (such as slot machines), card games, esports, fantasy sports (popular in North America), horse racing games, cockfighting games, etc. Currently, only sports, lottery, fantasy sports, and esports rely on data providers, while other games can be developed independently, using machine-generated random numbers to announce results. In some countries where gambling is legal, third-party institutions regulate and audit the generation of random numbers and issue certification certificates.
Game companies in the industry usually specialize in specific gaming areas, such as card game companies only developing card games, electronic game companies only developing electronic games, and sports game companies only developing sports games. Rarely do game companies develop all the above categories. After game development, game companies package the games into APIs, selling them to network providers or independent operators to make profits.
Profit model: Network providers or independent operators access the game company's API and can offer the game. When players lose money in the game, the operator regularly pays a commission to the game company, usually ranging from 5% to 20%.
For example, with a 5% commission, if operator A integrates game company B's game "King of Beasts" and player C loses 1 million in it, operator A needs to pay game company B a commission of 1 million * 5% = 50,000.
Payment Providers: Payment is the most important link in the online get-rich-quick industry. Providers apply for legal payment licenses from local governments, sign agreements with various banks, and integrate online payment methods from banks. After integration, they are called "third-party payment companies"; integrating payment channels from several "third-party payment companies" is called a "fourth-party payment company." The more hands change, the higher the payment cost. Payment providers then integrate their payment API into network providers or independent operators, allowing users to make online deposits. For example, OKPAY, the hottest and lowest point payment brand in Africa and Latin America, can be contacted via TG: ZF123888.
Profit model: Charge a commission based on the deposit turnover, usually ranging from 0.8% to 30% (depending on the country, the higher the cost of obtaining the payment source, the higher the point). For example, if operator A integrates payment company B's payment API and a user deposits 1 million, operator A needs to pay payment company B 1 million * 1% = 10,000.
Payment providers are the most profitable companies in the entire industry chain, simply because other upstream and downstream commissions are settled based on "player wins and losses," while payment companies charge a commission on each transaction. If you deposit 100 yuan and then withdraw it, and repeat the deposit, each transaction will incur a 1% commission! The more deposits, the larger the turnover, the more the payment company earns, and this cycle continues, rolling out a payment empire.
Support Providers: Responsible for solving cloud services, risk control, customer service, SMS verification code collection, email verification code collection, and other infrastructure links in the betting platform, allowing the platform to focus on improving user experience, marketing, and operating games. Some game developers also need similar services.
Profit model: Charge a fixed monthly or annual fee;
Network Providers: Focus on developing betting systems, providing basic functions such as member registration, deposit, withdrawal, and report bill inquiry. Network providers rarely develop games, so most network providers choose to integrate products from game developers, payment providers, and support providers into their betting platforms and sell complete solutions to those in need. Network providers are like a table, and the suppliers are like the dishes on the table. Every time a diner takes a bite at the table of a network provider, the supplier providing the dish benefits.
Network providers are essentially intermediaries, which to some extent meet the entrepreneurial needs of practitioners who lack development capabilities, supplier information, and negotiation skills. Enterprises with independent development capabilities and rich supplier information usually choose to develop their own betting systems, and such platforms are called "independent operators."
Profit model: Charge operators a one-time access fee and a monthly maintenance fee, and earn a difference on the commission points charged by various suppliers. Independent operators, by bypassing the role of "network providers," therefore have relatively higher platform profits.
Operation Part (Players):
Operators: Operators are divided into "ordinary operators (choosing the betting system of network providers)" and "independent operators (independently developing betting systems)"; mainly responsible for launching personalized brand operation betting systems, attracting users through various marketing methods, and applying for legal operating licenses in their countries before operation. Well-known operators include BET365, BWIN, BETSSON, STAKE, etc.
Profit model: The platform profits from users' losses.
Marketing Part (Fans):
Traffic Providers: The first type of traffic provider builds websites and apps to provide users with the data, skills, live broadcasts, communication, promotions, etc., they need, gaining user traffic and selling advertising to operators, such as certain sports live broadcasts, lottery websites, forums, etc. The other type has good advertising skills, specializing in buying traffic from various search engines, social platforms, and media platforms.
Profit model: Sell advertising to operators, earning advertising fees; or use their large customer base to become agents for operators, earning intermediary commissions.
From data providers to game developers, from payment providers to support providers to network providers, operators, and then to traffic providers; each link has its unique profit method and operating model. As a newcomer to the industry, understanding this information can help you get started faster and find a development path that suits you.
The above is a simple summary of the industry based on my more than a decade of experience. The purpose of this article is merely to help you open up your industry awareness. If you want to delve deeper, you need to tirelessly deepen your understanding of the industry. Fortune favors the diligent, and I hope you achieve your dreams.
