Can someone please explain rakebacks?

[otnemem]

Are they sponsored or endorsed by the poker sites? I don't understand how you are able to earn rake back. Unless it's just another way to get you to play more, thus you pay more rake but earn a percentage of it back... As a matter of fact, did I just answere my own question?

[Harv72b]

As I understand them, rakebacks are not directly sponsored by the sites, but they are tolerated and even encouraged. Instead, they are sponsored by private affiliates to each of the major sites.

The way it works is, you can sign up to be an affiliate for your favorite poker site (they have varying requirements to qualify), and for every person you sign up, you get a certain percentage of the money the site makes from that player (i.e., the rake). I believe the percentage changes depending on how often that person plays. At any rate, in order to sign more people up, the affiliates created rakebacks, where they refund a smaller percentage of the money they are getting to the player.

For example, Affiliate A signs up Player X for Party Poker. Party then gives Affiliate A 20% of the rake that Player X feeds into the site. Affiliate A then turns around and gives 50% of that (or 10% of the total rake) back to the player, as incentive for signing up. Everybody wins. /images/graemlins/laugh.gif

[adamstewart]

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As I understand them, rakebacks are not directly sponsored by the sites, but they are tolerated and even encouraged.

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Um....no.


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For example, Affiliate A signs up Player X for Party Poker. Party then gives Affiliate A 20% of the rake that Player X feeds into the site. Affiliate A then turns around and gives 50% of that (or 10% of the total rake) back to the player, as incentive for signing up. Everybody wins. /images/graemlins/laugh.gif

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As I understand it, you're getting screwed.

[Harv72b]

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As I understand them, rakebacks are not directly sponsored by the sites, but they are tolerated and even encouraged.

[/ QUOTE ]

Um....no.

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They're not tolerated? Or not encouraged? I always figured the poker sites didn't give a rat's ass what their affiliates did with the money they paid out, and that they encouraged anything that would A), make them more money, and B), not cost them any more money?


[ QUOTE ]
[ QUOTE ]

For example, Affiliate A signs up Player X for Party Poker. Party then gives Affiliate A 20% of the rake that Player X feeds into the site. Affiliate A then turns around and gives 50% of that (or 10% of the total rake) back to the player, as incentive for signing up. Everybody wins. /images/graemlins/laugh.gif

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As I understand it, you're getting screwed.

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How so? Assuming you'd be playing poker on Site Y anyway, you're getting money back that you wouldn't otherwise. The affiliate is getting the middle man's share, and the site is getting increased traffic/rake. All three involved parties gain from the arrangement, si?

[adamstewart]

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[ QUOTE ]
[ QUOTE ]
As I understand them, rakebacks are not directly sponsored by the sites, but they are tolerated and even encouraged.

[/ QUOTE ]

Um....no.

[/ QUOTE ]

They're not tolerated? Or not encouraged? I always figured the poker sites didn't give a rat's ass what their affiliates did with the money they paid out, and that they encouraged anything that would A), make them more money, and B), not cost them any more money?


[ QUOTE ]
[ QUOTE ]

For example, Affiliate A signs up Player X for Party Poker. Party then gives Affiliate A 20% of the rake that Player X feeds into the site. Affiliate A then turns around and gives 50% of that (or 10% of the total rake) back to the player, as incentive for signing up. Everybody wins. /images/graemlins/laugh.gif

[/ QUOTE ]


As I understand it, you're getting screwed.

[/ QUOTE ]

How so? Assuming you'd be playing poker on Site Y anyway, you're getting money back that you wouldn't otherwise. The affiliate is getting the middle man's share, and the site is getting increased traffic/rake. All three involved parties gain from the arrangement, si?

[/ QUOTE ]


It's actually against the RULES and CONTRACT of affilitates to give rakeback... but it happens anyway - under-the-table, so to speak.

(Look at the whole PokerNow situation with rakeback....)


Secondly, I was only referring to the %'s you used in your example /images/graemlins/wink.gif.




On another note, Harv... you sucked out on me the other day, eh? /images/graemlins/smile.gif (Did you know that was me?) Did you see the guy to my left who seemed to have his "auto-raise" on AGAINST ME ONLY, THOUGH!? /images/graemlins/tongue.gif /images/graemlins/crazy.gif


Adam

[swedeD]

I have heard that players at Empire, with a high VIP-status, get rake back directly from Empire... read it in a thread here at 2+2, can't remember where...

[bicyclekick]

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I have heard that players at Empire, with a high VIP-status, get rake back directly from Empire... read it in a thread here at 2+2, can't remember where...

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Not true. I'm one of those guys and recieve nothing.

[gambool]

I signed up with a RB deal last month. After 2k hands, my MGR was negative and I was showing as 'owing' the affiliate RB. Anyone else had this?

I emailed them a few times, but no response. The first month was patchy, amd I'm not sure it added up. This month so far is looking a lot better.

[swedeD]

Ok.

[jtr]

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I signed up with a RB deal last month. After 2k hands, my MGR was negative and I was showing as 'owing' the affiliate RB. Anyone else had this?


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Not 100% sure, but I believe this happens because any signup bonuses or deposit bonuses that you receive are written off against your affiliate's rake % payments. Sort of like an author getting an advance on a book -- it's not really free money, as it gets deducted from subsequent payouts.

[masonx]

someone who wants to start a rake back company signs up as an "Affiliate" to party poker or some random site, and there are numerous affiliate deals, one is that for every person you sign up you get 30% of their Gross Rake. Then in turn that affiliate gives you 25% or some number (this is the standard for party) of the rake that they collected from the affiliate program, and keep 5% of it as profit. That is how rakeback works.