why are party skins against rakeback?

splashpot · #1 03-12-2005, 12:33 PM

Unless I'm missing something, the poker site doesn't lose money when players get rakeback. I don't see why it would be against their terms of service. By discontinueing rakeback, all they accomplish is driving high volume players to other sites.

otctrader · #2 03-12-2005, 12:36 PM

Rest assured it's not the skin, but the parent/IGM creating the stink.

splashpot · #3 03-12-2005, 12:41 PM

Regardless of who creates the stink, it still holds true that the company is losing money by halting rakeback.

bpb · #4 03-12-2005, 12:45 PM

Because it creates a situation where some players are getting kickbacks from the affiliate's commission, while other players aren't. This in turn creates situations where players want to change their affiliate tags, thus pissing off the original affiliates.

Affiliate based marketing where you offer commission on the lifetime of the account can get really tricky if you don't handle it right. Party really isn't handling it well.

bpb · #5 03-12-2005, 12:50 PM

If Party (et al) decided tomorrow to end all affiliate payments, they would NOT lose money. The business that they would lose would pale in comparison to the affiliate payments they make. They are giving up a full 25%+ of their rake. And the lions share of this goes to affiliates who don't kick back anything to the players.

Freakin · #6 03-12-2005, 01:01 PM

Do you really think that affiliates are no help to Party and it's respective skins? Think about the poker community as a whole. How many sites are supported solely by affiliate revenue? I think you underestimate the positive impact affiliates have on Party's growth.

Freakin

Recliner · #7 03-12-2005, 01:05 PM

I'm not so sure about that. I would think every internet pro that plays at party and skins has a rakeback deal as well as anyone who plays a large ammount of poker. The people that play the most generate the most money for party and I would think a very high percentage of those people have a rakeback. If they start playing less there would be a huge impact on party's bottom line. Would you rather get 75% of 10k or 100% of 5k? In addition to that party can't take away the MGR payments because then they are going to lose their best marketers. Finding new players seems like a lot of work to do for only $50 compared to taking a gamble on every player you sign up that will generate $50+ a day for as long as they play.

johnnymac · #8 03-12-2005, 01:12 PM

Party do not want affiliates offering rakeback as it costs them money (this is disregarding the possibility/fact of players leaving should they put a complete halt to it).

Any poker room/casino is essentially offering affiliates a % payment in exchange for marketing their product, but this is in addition to their own marketing/advertising spend. Most players at a poker room/casino do not actually come through an affiliate tag, but go direct to the website, therefore meaning all earnings go to the product. If party were to allow rakeback they would be at a disadvantage, as their affiliates would be able to offer a better product than them (by returning money to the players), hence more players would be signing up through affiliates, meaning party has to pay more in commissions.

Joe

PokerHund · #9 03-12-2005, 01:13 PM

Why would it make sense to allow rake-back-deals ?? All what's happening is that Party loses his own players to another skin. Can't make any sense. And, why would i as an affiliate try to bring in new players when every scumbag can come and take them away from me by offering deals. Being an affiliate means to bring in new players and not stealing them from other affiliates by violating the rules; and just let them play on the same tables through a different skin. I rather have a handfull players that i pay nothing than 100 that i can make the same money from. Hopefully all other sites will smarten up soon and do something against those deals. Rakeback does not bring in a single new Pokerplayer.

Recliner · #10 03-12-2005, 01:28 PM

I made sure to get a rakeback deal when I started at party. What I think you fail to realize is that rakeback drives people to play much much much more poker at party and skins. There are many people who make several thousand dollars a month through rakeback which generates over 10k a month for party through that player. If you take away that money that player is going to be loooking for a more profitable place to play and when that place comes around they are going to stop playing at party if they already havn't.