rusty JEDI
10-03-2005, 11:57 PM
Please excuse my poorly written mess below, im making it up as I go, and I am working with incomplete information.
There has been a theory stated by at least two people, off the top of my head I think it was Morgant and Sublime. The theory goes something about open %'s leading to the margin being closed to 1% through competition and eventually ending rakeback. Or, something along those lines.
I think there is only more room for improvement. Lets look at some history of rakeback that leads me to what I am thinking here. Rakeback started with someone saying I will kick back half to you. At this time the max the affiliate could get was 20% and you could get 10%. Eventually someone came and said, I will give you 15% and lessen the margin but bring in more players and more profit by getting all the new people to rakeback. Eventually this led to an affiliate talking the sites into giving him 25% and giving 20% rakeback to players. So now this person was getting all the new players because he gives the most. However, what he really did is up the total take for all players and affiliates. Eventually this led to subaffiliates getting under regular affiliates and making it 30% from sites. So now affiliates can offer 25% to attract the new players and the players are making more, and the affilates are making the same.
So what I am saying is making the %'s open to all will only lead to everyone getting a bigger piece of the pie from the sites. I think that is WAY more likely than the margin getting down to 1% and the end of rakeback. But, if you ask me 1% is viable eventually, affiliates just arent ready yet. However, the sites have more room to give first. If any affiliate comes along and says that the sites have reached the end of what they are willing to give, I call bull***T.
rJ
There has been a theory stated by at least two people, off the top of my head I think it was Morgant and Sublime. The theory goes something about open %'s leading to the margin being closed to 1% through competition and eventually ending rakeback. Or, something along those lines.
I think there is only more room for improvement. Lets look at some history of rakeback that leads me to what I am thinking here. Rakeback started with someone saying I will kick back half to you. At this time the max the affiliate could get was 20% and you could get 10%. Eventually someone came and said, I will give you 15% and lessen the margin but bring in more players and more profit by getting all the new people to rakeback. Eventually this led to an affiliate talking the sites into giving him 25% and giving 20% rakeback to players. So now this person was getting all the new players because he gives the most. However, what he really did is up the total take for all players and affiliates. Eventually this led to subaffiliates getting under regular affiliates and making it 30% from sites. So now affiliates can offer 25% to attract the new players and the players are making more, and the affilates are making the same.
So what I am saying is making the %'s open to all will only lead to everyone getting a bigger piece of the pie from the sites. I think that is WAY more likely than the margin getting down to 1% and the end of rakeback. But, if you ask me 1% is viable eventually, affiliates just arent ready yet. However, the sites have more room to give first. If any affiliate comes along and says that the sites have reached the end of what they are willing to give, I call bull***T.
rJ