Help me understand the affiliate world

[KKsuited]

I wouldn't try to argue that memphis. There is a gap between what new players know and what affiliates know.

[barongreenback]

Thanks for all the replies. Lots of good points.
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Also, your rake all going to party is taking money out of the poker economy too.

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Fair point esp. with a publicly quoted company. However, as long as there is good competition the ability of the site to take profits must be limited. Some of these profits should find their way back to players (Of course, it could equally go to marketing). Sites do seem to be making very good profits so I don't know whether the industry is as competitive as it could be.
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I think it is that information gap that bothers players like the OP and me, and the irrevocable nature of the actions we take before we realize fully what's going on.

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Yes but more so because it seems so arbitrary and random. One player may get rakeback, another gives a portion of rake to an unknown affiliate and another gives all his rake to the site. All because of nothing more than what information the player happened have at the time. It can't be an efficient system. I think the sites are to blame for the chaos and they have to find a way to resolve it that balances marketing, loyalty and costs. Maybe it's just because the industry is very young that is making it all seem like the wild west.
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This is called CPA, for example, the room may of payed the affiliate $75 since he referred you, then he buys you a $25 dollar book and he makes $50 dollars. Everyone wins.


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Most affiliate (bigger ones at least) spend thousands of dollars a year marketing different poker rooms. In return, they get a piece of the rake. Simple business.

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The two ways an affiliate get paid are very different and suggest different roles for the affiliate. An affiliate may get a player to a site but do they work to keep them there? Maybe some do but I know mine haven't done anything. They should get paid for what they do. This is why in my case I'm fine with them getting one payment but have a problem with an ongoing percentage. Now that online poker is widely known about, are the sites' dificulties switching from getting new signups to creating loyalty?
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If players want some of their rake back, then discount the rake taken.

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I agree. The sites have to find some way to discount the rake because of competition and the cash rich buisness. They've decided that cutting the rake is not the best method so they use bonuses and rakeback instead. Bonuses create no loyalty. Rakeback bleeds money to a middle man, causes conflict between skins and does not neccessarily go to the players you want it to go to (the site doesn't control it).

I don't know this buisness so the above is just an opinion but I'd like to kickstart discussion.

James

[KKsuited]

The only thing I would point out Baron, is the affiliate agreement is for affiliates to bring players to the room, after that, the room takes responsibility for keeping players.

I understand your point though. I don't get RB, but I don't play enough anymore to make that much. When I first started playing over 3 years ago, I could have used it bigtime. I probably played 50,000 hands and never knew about RB. I consider that my fault though.

The many complaints people have should go to the pokerrooms. The made the deal with affiliates.

My guess would the poker rooms love the affiliates and you wouldn't get to far.