why Pokershare will fail

[MicroBob]

1. they say they are going to 'seed' some money for the first Q (to cover some of the expenses that will take away from their direct profits of course). They have every incentive to pay their players a decent sum in the first Q IF THEY ARE ABLE (big IF) as that will keep them playing and perhaps draw in more customers.

2. I would have considered getting set-up there by now if I could have gotten RB...but last I heard they still weren't getting things going with their affiliates. I haven't followed it that closely though.
I'm not that bothered by it as I don't care foe the UB ring-games very much anyway (if I did...then I think I would have cleared my $3200 in leftover bonus-dollars by now)

[grinin]

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Anyone want to bet me that the very first payout (after the first quarter) is so small per player as to be worthless?

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There was talk of initial seed money. Otherwise I would imagine the first payout would be zilch.

[Synergistic Explosions]

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Not many, my guess zero.

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I don't know, 40% of ten billion makes some millionaires.

[Uglyowl]

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Not many, my guess zero.

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I don't know, 40% of ten billion makes some millionaires.

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Lets take Party, good idea.

For the first 6 months of 2005 their profit was $171M

If they distributed 40% of that, they would share $68.4M

For that period 842,382 unique players played at Party making them $2.62 in revenue per person per day (i.e. rake).

The average player then is entitled to $81 in profit sharing for the first 6 months.

We are not the average player though, so ok. Let's say we are high rollers paying $3 rake/hand at 2,000/hands a day. Very high I know, but using this as an extreme. That would make us 254X more active than the average user.

Our profit share would be $20,574 for the period or $3,429/month, far from a millionaire. I'll take rakeback if given the choice of one or the other.

[ThePinkBunny]

No, my analysis isn't off. You've just totally missed the point. Pokershare will not grow, because players will have little incentive to play there as time goes on.

[Synergistic Explosions]

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I'll take rakeback if given the choice of one or the other.


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You will be able to do both, so no choice need be made.

[Uglyowl]

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No, my analysis isn't off. You've just totally missed the point. Pokershare will not grow, because players will have little incentive to play there as time goes on.

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It is incorrrect in the fact taht profit share is actually worse for the players who just start out at the site vs. those who get in later.

You are right in the fact Pokershare will not grow solely on their profit share plan. It is probably equivalent to 15% r******k extra on top of the offer, all dependent on how they handle their expenses.

For example, if they get 100 people to sign up in the first month and they pay in 300 rake per month. The revenue would be $30,000. Guess what their profit will be?

If you guess they would have a loss, you are correct, meaning no profit share for the new players.

I do understand where you are going with diminishing returns though and how people who compare it to getting into Microsoft as a start-up are way off base.

[pokerrookie]

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will you be able to play on and earn ur 40% on pokershare if you already have a account on UB? anyone know?




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No, you cannot.

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Not true. I signed up there, with two accounts at Poker Share, and I got in. I know one of their reps posted here stating you couldn't have both, but it may be worth a shot. Worked for me.

[pokerrookie]

The rep said they would add 1,000,000 in seed money to the first payout. I think it could be quite substantial, but we shall see.

[DCWGaming]

One thing that everybody is overlooking (or I am misreading). Their net profit is after expenses. So after they pay for their marketing, maintenance, etc. You get what is left over. There is nothing from keeping the owners from giving themselves a big fat raise and leaving the players 20$ to divide amongst themselves. Especially seeing as you dont technically own shares of the company, so you have no say in what goes on.

They give you however much they feel like giving you.