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Dragons' Den investor Theo Paphitis entered the world of affiliate marketing on last night’s show, handing £200k to web entrepreneurs Emmie Matthews and Ed Stevens for 30% of their business.
Their site, GamingAlerts.co.uk, offers odds comparisons and an alert system from “major online casinos, online poker rooms, online bingo sites and online sportsbooks”.
They seem to have landed a pretty good deal. Even though they revealed that they also ran a media planning and buying agency for gambling companies (no conflict of interest there then), and gave away almost a third of their equity, the publicity won’t have done them much harm.
According to their release, £200k is also "the single largest amount ever awarded on the immensely popular program”.
Matthews projected that they could earn £1.2m in sales and £740,000 profit in year 1, adding:
"The top affiliates that we will be competing with are easily making a million pounds a year, so we feel it's easily achievable."
Affiliate Marketing Merchants Report 2007