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Old 10-22-2005, 12:34 AM
beanie beanie is offline
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Join Date: Jun 2004
Posts: 93
Default An answer-maybe not the answer, any thoughts?

This is a follow up to my last post where I identified the problems that are causing all of the rakeback fervor recently. Here are some attempts to answer those problems and talk straight about what the sites may or may not know they have created accidentally. Let’s start from the beginning. The first people to sign people up for Party Poker (or any other site) had it easy; they gave away nothing and didn’t need to give away anything to get their customers. At first there wasn’t the massive amounts of marketing affiliates carried the banner. Then once that money started to flow in so did the Ads that created the fish tank that is Party Poker. Currently they have such a huge lead on the market that they could virtually commit suicide in a business manner and still have 40,000 people signed on every night.

The reality is it was only logical that rakeback in some form would happen and once that money became available people would do whatever it took to get it. When you give affiliates money to help you promote your site it is only logical that some people would go with a high volume model. That is Rakeback and there is no going back at this point. Or maybe there is, some of the solution I will offer creates more of a fish tank on Party Poker so their value to players will likely always be high under any scenario.

All sites need to create a VIP program or some form of operator rakeback, any site that doesn’t is going to have a difficult time, this is why. The internet is not like living in Billings, Montana. If you want to buy groceries in Billings, Montana your options are fairly limited (not to mention Plasma screen TV’s). One wrong action by a site can cause thousands of people to leave instantaneously. This never had to happen is my point, if Party Poker had an option for VIP players no one would listen to that guys offer being posted in chat. They are being taken care of in a sufficient manner. I will post a poll in a bit to get peoples opinion my guess is people would take 20% operator controlled as opposed to 25% by affiliates. Affiliates then can go back to the task of getting NEW customers.

Let’s say as an example that affiliates were labeled in three ways VIP, MGR and CPA. The only one of the three that could offer a version of rakeback is the VIP affiliate, if for instance that affiliate got 25% and the VIP program paid 20% the affiliate would make 5%. If they gave anything more in terms of dollars they would lose their program. If an MGR affiliate gave rakeback they would lose their program. We as affiliates should organize teams to catch spammers after all they are taking our customers as well. We need to start working together. This allows rakeback affiliates to not be so concerned about the price wars and focus on providing a better service for the customers. The site gets what they want because they are tired of dealing with e-mails asking if this or that rakeback site is legit and they need CS help. The affiliates don’t get exactly what they want but they get to keep their businesses and this system will force them to work on services for their players.

The player does lose some percent here but I think in the long term this is the best system for the players as well it makes affiliates work harder for their money. It also has the added effect of getting the sites back focused on marketing and getting fish. That is always good for players.

Realistically if they don't do this there may be more fish value on the site. That is why I said whatever option they choose might be best.


This post is too long, so I will post again on how to deal with active players.
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