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Old 10-10-2005, 09:58 AM
fnord_too fnord_too is offline
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Join Date: May 2004
Location: Norfolk, VA
Posts: 672
Default Re: The case against RB

Just one quick note:
Affiliates make money for referring whomever. Anyone who does not sign up directly is diverting money from the site regardless of whether they are a fish or a shark. The economics of the situation, as interpretted by most sites, is that paying people this commision to wrangle business is better for growth than just reducing rake across the board.

Given that said rake is effectively taken from the site, but that the site's rake is the same, it does not really matter where it goes after it is diverted. Basicaly there is price discrimination for everyone who signs up through an affiliate from the sites perspective regardless of what happens to the money once it disappears.

It is a shame the analyses the sites have done did not suggest just slashing rake by a third or something, because that is best for everyone around (except the affiliates and maybe the site itself, since sites profit from players being ignorant of the price discrimination aspect of affiliates.)
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