why not just lower the rake?

#1 10-13-2005, 02:04 PM

somewhat new to online play..don't get all this rakeback crap. why don't the sites just have lower rake for all?

krimson · #2 10-13-2005, 02:06 PM

A standard player has no clue that rakeback exists. Lowering rake would mean they're giving everyone a discount and this is a huge decrease in revenue for the site.

Plus most fish won't go play at a site because it take $2 out of the pot rather than $3. I'd be surprised if most players even know what rake is.

teddyFBI · #3 10-13-2005, 02:06 PM

[ QUOTE ]
somewhat new to online play..don't get all this rakeback crap. why don't the sites just have lower rake for all?

[/ QUOTE ]

Price differentiation.
Why lower the rake for EVERYBODY, when the only people who are clamoring for a lower rake (via rakeback) represent a tiny fraction of the playing population.

PaultheS · #4 10-13-2005, 02:07 PM

[ QUOTE ]
somewhat new to online play..don't get all this rakeback crap. why don't the sites just have lower rake for all?

[/ QUOTE ]

Certain types of players (the bad, gambling type players) don't know/care about rake at all. Lowering rake slightly wouldn't bring more of those players but would still cut the site's profit.

Rakeback is a way of giving only the players who care about the rake a lower rake while still raking the majority of players the full amount.

Edit: Er, yeah, what they said...

Pov · #5 10-13-2005, 02:07 PM

[ QUOTE ]
somewhat new to online play..don't get all this rakeback crap. why don't the sites just have lower rake for all ?

[/ QUOTE ]

There is no reason to lower everyone's rake when you can charge the newbs full price and lure the discerning customers with discounts. Those Dell coupons everyone raves about are exactly the same thing.

edit: There weren't any replies when I started typing. [img]/images/graemlins/smile.gif[/img]

Freudian · #6 10-13-2005, 02:08 PM

[ QUOTE ]
somewhat new to online play..don't get all this rakeback crap. why don't the sites just have lower rake for all?

[/ QUOTE ]

Because very few players care about how much the rake adds up to. Furthermore the pokerroom already pays money to affiliates. Rakeback is simply affiliates passing some of that money along. So it doesn't cost the poker room anything extra. Lowering rake for everyone (or giving cash for player points etc) would however cost the poker rooms big money.

#7 10-13-2005, 02:09 PM

thanks, yes i understand.

do rakebacks always go thru and affiliate? or can you get rakeback directly from the sites?

PaultheS · #8 10-13-2005, 02:09 PM

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do rakebacks always go thru and affiliate? or can you get rakeback directly from the sites?

[/ QUOTE ]

Almost always from an affiliate.

#9 10-13-2005, 02:11 PM

if i've already sign up for an account at the sites (PP and UB) am i screwed now (can't get rakeback)?

Pov · #10 10-13-2005, 02:12 PM

[ QUOTE ]
thanks, yes i understand.

do rakebacks always go thru and affiliate? or can you get rakeback directly from the sites?

[/ QUOTE ]

Primarily through affiliates though there are/were a few that did it somewhat directly. Everything is screwed right now. Your best bet is to just hang out and read the forum for a week or two before deciding what to do. It is unlikely people who wait to sign up for something will be disappointed, but somewhat likely people who jump the gun will be.