What % of winnings reasonable for \"backing\" someone?
 

I have a friend who has a $600 debt he needs to pay off. To help him out, I decided to let him use my money to clear some bonuses. The original deal we agreed on was I would get 10% of all of his winnings + bonus, and if he lost money, he would owe me that amount. I think this seems pretty standard, except the 10% is fairly low. Anyways, he happened to clear some bonuses on a site that doesn't subtract bonus from MGR. Because of this, I made a nice extra $50-$60 in rakeback. He feels that he deserves 90% of this rakeback, I say no way, that he should be happy that I'm letting him play with my money, and that I'm not taking the standard 50% of his winnings.

Thoughts? Better agreement to reach?

Re: What % of winnings reasonable for \"backing\" someone?
 

[ QUOTE ]
I have a friend who has a $600 debt he needs to pay off. To help him out, I decided to let him use my money to clear some bonuses. The original deal we agreed on was I would get 10% of all of his winnings + bonus, and if he lost money, he would owe me that amount. I think this seems pretty standard, except the 10% is fairly low. Anyways, he happened to clear some bonuses on a site that doesn't subtract bonus from MGR. Because of this, I made a nice extra $50-$60 in rakeback. He feels that he deserves 90% of this rakeback, I say no way, that he should be happy that I'm letting him play with my money, and that I'm not taking the standard 50% of his winnings.

Thoughts? Better agreement to reach?

[/ QUOTE ]

the original agreement should have included an agreement about the rakeback. duh.

are you his affiliate or something? if so, did you have a rakeback deal with him prior? details details details.

Re: What % of winnings reasonable for \"backing\" someone?
 

This is really just a friend of mine =). The reason we didnt discuss rakeback in the original deal was that he was clearing bonuses on Party, which I do not have rakeback, so the issue never really came up. Since he starting clearing bonuses (using my money), on other sites, rakeback has become an issue, especially on a site where bonus is not subtracted from MGR. I am making an extra $50-$60 for every bonus he clears. He feels like he deserves 90% of this rakeback.

Oh BTW, I should mention, the reason I am getting rakeback is because he is using MY accounts. He is unable to open his own accounts for various reasons (like having no bankroll).

Re: What % of winnings reasonable for \"backing\" someone?
 

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and if he lost money, he would owe me that amount.

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1 thought, this isn't backing.

this is a [censored] loan, with horrible interest (provided he wins). just what a "friend in need" needs...

backing = you provide him funds, if he loses it's on you, if not, you get a share of profits. this is NOT backing, must be a great friend.

Re: What % of winnings reasonable for \"backing\" someone?
 

ok ... considering he probably will never lose money (clearing bonuses on .5/1), your point is moot. It was merely a mechanism to keep him from playing too loose. When you realize you arent really playing with YOUR MONEY, you sometimes like to gamble more.

Anyways, as stated before, your post is completely useless, as it does not provide any reasonable solution.

Re: What % of winnings reasonable for \"backing\" someone?
 

[ QUOTE ]
I have a friend who has a $600 debt he needs to pay off. To help him out, I decided to let him use my money to clear some bonuses. The original deal we agreed on was I would get 10% of all of his winnings + bonus, and if he lost money, he would owe me that amount. I think this seems pretty standard, except the 10% is fairly low. Anyways, he happened to clear some bonuses on a site that doesn't subtract bonus from MGR. Because of this, I made a nice extra $50-$60 in rakeback. He feels that he deserves 90% of this rakeback, I say no way, that he should be happy that I'm letting him play with my money, and that I'm not taking the standard 50% of his winnings.

Thoughts? Better agreement to reach?

[/ QUOTE ]

usually, the backer assumes the risk of going broke. you were in a no-lose situation. i think you were giving him a raw deal to start with.

your agreement concerned bonii and gameplay, not rakeback. since it was not mentioned in the agreement, i feel he definetly deserves some of it. considering the original arrangements, i would think he should get almost all of the rakeback.

Re: What % of winnings reasonable for \"backing\" someone?
 

[ QUOTE ]

1 thought, this isn't backing.

this is a [censored] loan, with horrible interest (provided he wins). just what a "friend in need" needs...

backing = you provide him funds, if he loses it's on you, if not, you get a share of profits. this is NOT backing, must be a great friend.

[/ QUOTE ]

I totally concur. Backers assume 100% of the default risk and just take a higher cut of the winnings. This is NOT backing in any traditional sense. This is actually a horrible deal for your "friend". I truly would be embarrassed to offer a friend this arrangement.

Re: What % of winnings reasonable for \"backing\" someone?
 

Ok, lets start over. I pretty much want to reconstruct the "contract", and am looking for advice. I stated the original contract for background information only.

Based on the fact that I probably wont make him pay me back (considering I dont see him going into debt at the limits he is at), what is a reasonable percent of profit, should I reasonable request?

Re: What % of winnings reasonable for \"backing\" someone?
 

I think this is a terrible idea.

Have him open an account and transfer him a starting roll.

Re: What % of winnings reasonable for \"backing\" someone?
 

He can't open an account, I stated that already. There are other (legal) reasons besides "he has no bankroll".