Rakeback question

[joedot]

This is a general question, please forgive my ignorance. Let's say you are told you will get back 33% rake. And lets say you contributed $100 in rake to Party Poker. This can't mean that you get back $33 does it? Or does it mean, after Party Pays your affiliate a cut of the 100, you get 33% after that? If anyone could explain this to me I would be forever thankful to you. Please no PM's. Hope this is ok to ask here too.

[Smackdab]

I am aware of no sute that gives 33% rakeback and if your affiliate is only offering you 33% of his take........well....your the one being taken.

[adamstewart]

uh oh... someone didn't read the 'sticky' at the top of the forum.

[mikeyp]

He isnt asking for a rakeback deal. He is asking a general question about rackback.

[lorinda]

Given that I've never seen an offer of 50% or 60% then I think it's safe to assume that it's total rake, rather than affiliate share.

Of course, you should always ask your affiliate what HE thinks it means to avoid any potential ripoff.

Disclaimer: I have never given or recieved a rakeback, but I think my logic is sound.

Lori

[joedot]

Yeah, well I wasn't too concerned about being "ripped off" since I played for over 3 years getting zero rakeback. I was happy to be getting anything back at all. All I know is that I receieved several PM's when I signed up, and they all were saying 25 to 35%. Now what exactly that means, is my general question.

[Smackdab]

[ QUOTE ]
they all were saying 25 to 35%. Now what exactly that means, is my general question.

[/ QUOTE ]
Pm them, back and ask exactly what they mean?

The highest rakeback received by an affiliate I am aware of is 27% by Empire. Some site may offer more but I am unaware of any. Most affiliates offer percantages of their take based on volume. I currently have a rakeback deal with an affiliate where I get back 20% of total rake but I have a minimum requirement of 10k hands/month. All deals are negotiable. Don't rush in and make the best deal you can.

[joedot]

Thanks. I also wasn't worried at all since I figured, if I felt like I was getting screwed I would just sign up for a different skin and get another affiliate. After all, this is a buyers market still.

[moondogg]

[ QUOTE ]
Yeah, well I wasn't too concerned about being "ripped off" since I played for over 3 years getting zero rakeback. I was happy to be getting anything back at all. All I know is that I receieved several PM's when I signed up, and they all were saying 25 to 35%. Now what exactly that means, is my general question.

[/ QUOTE ]

(By this post I am in no way offering anything or endorsing anything or anyone. I am merely attempting to provide an informative unbiased answer the general question. Report or delete this post as you see fit.)

The generally accepted practice is this:
- Your gross revenue is the total amount of rake generated while you are playing at a table, divided by the number of players. If there is 7 players in a hand and the rake is $1.40, then you are credited with $.20 of revenue.
- The affiliate has a deal with site where he/she gets paid X%. The affiliate will offer you Y%, something less than X%. You should receive from the affiliate Y% of your gross revenue according to the formula above.

Verify with the affiliate that this is exactly how you will be paid. If they say they will pay you a a percentage of what they are paid, ask them to calculate what your percentage of gross revenue would be and make them promise you that number instead.

Some sites, being skins of other sites, discount the payments they make to affiliates to defray the licensing cost of being a skin. For example, one site discounts 50% off the payments, so if they say you are getting 10% you will actually only get 5% according to general calculation method. Verify this with your affiliate as well.

Some sites don't pay affiliates for one reason or another. Sometimes it is the site's fault, sometimes it is the affiliate's fault. Either way you get nothing and have very little recourse. Make sure you trust both your affiliate and your site.

BTW, some sites do pay affiliates up to 35% if the affiliate generates enough volume or players. They are often less popular sites.

[joedot]

Thanks moondog. I'm assuming then that they were quoting me a % of the gross. So the first example I gave would be correct. Out of $100 gross, I would get back $33, if 33% was the number quoted. this makes the most sense after what you said, that they calculated and quoted me the % of my gross rake. thanks

[TheMetetron]

Hmm, never heard of 35% but it must not be a Party skin. My rakeback is 30% on Empire, and I've never heard of anything higher. Then again, I do a crapload of MGR so that may have something to do with it.

[KaBoom]

Which party skins discount 50% of the payments?