Why affiliates are making a stink

[otctrader]

Here's what people don't comprehend - when Party originated, non-rakeback affiliates signed their agreements to promote IGM and receive compensation in return; some probably made a significant outlay to do so (hardware, marketing expenses, etc). Now they cry bloody murder when rakeback providers, operating under the radar, cannabilize their business.

Furthermore, instead of closing/opening accounts, players more often than not set up shop at a skin, so not only is the original affiliate hurt, but Party now has to chop it's vig with the entity that runs the skin.

It's easy to say "I generate 5 bazillion dollars in MGR why the f* should Joe affiliate get a penny when I can get rakeback elsewhere," but reality is that original affiliate attracted you somehow, may have incurred an expense in doing so, and expects compensation in return as per Party's agreement. Furthermore, when that affiliate signed you up, he likely had no idea if you were a high volume player, and incurred the risk of you whoring microlimits exclusively and actually lowering his net income.

It's all a big clusterf*uck, and don't get me wrong, I'm not trying to glorify affiliates nor do I run one. I'll continue to operate under the radar and extract every dime of rakeback I can get my hands on until it becomes impractical, as most others will. I just think it's good to step back and see where the affy's are coming from. After all, it's not their fault - this is the model Party/IGM chose, and right or wrong we have to live with it or take our business elsewhere. Choose wisely.