How does Absolute stay in business?

[FishHooks]

I think its just psychological...most people would still clear the bonus if it is realeased at one time, this way just makes it SEEM better.

[Uglyowl]

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I think its just psychological...most people would still clear the bonus if it is realeased at one time, this way just makes it SEEM better.

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For fish it is better. They lose their money slower as bonuses is being pumped into their account continuously. This is a huge feature IMO that it is release in $10/increments.

[StellarWind]

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One thing that surprises me about Absolute is that they release their bonii every 10 dollars.

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Probably they copied this from Paradise which used to be the #1 site and set a lot of industry standards.

It's a customer-friendly approach and it does have the benefit of encouraging players to deposit the maximum amount instead of worrying about what they will be able to clear.

I know good service from a poker site is confusing but we can't be too cynical about everything.

Absolute is probably running at an operating loss. So what? Lots of good startup businesses lose money. The money in online poker does not come from being a medium player and squeezing out a small profit. Absolute is working hard to grow their business so they can offer lots of games and have economies of scale. Then they can make some real money.

Or it really could be a Ponzi scheme. There are no certainties in life. Always be careful.

[FishHooks]

I get what your saying, but I think your point is overstated. Most fish play for fun and enjoyment or they think their good, I dont think the slow $10 added into their account really affect them a lot, but I'm sure it does help some of they stay around just a tad bit longer.

If you look on the flip side of things when a bonus is released all at once, you could agrue that keeps the fish around because they want to keep playing to release that whole bonus and get their money. Remember to most fish gambeling is addicting so they will just keep playing even if they lose to get that free money.

[Unabridged]

http://forumserver.twoplustwo.com/sh...Number=3679552

[mosquito]

I have no doubt that AP is making money. The margin is much smaller than other sites, but still in the black.

The games they lose on are the ones consistently in the $5 to $15 size pot range. These games are less common than you think, I often search them out for cheap whoring. Much of the action is 6-max, and even the 9-handed tables often have one or more players missing or stting out.

There is income from .10-.20 that almost never hits the bonus threshold, and the bigger games are quite profitable. Tourney and SNG are highly profitable, the freerolls are an expense to get play money and small money players into the tournament action.

Much of the site was copied from the Paradise model, recent improvemants have been more Stars-like (hand history).

While I don't keep any more on any site than I need to, if AP was not making money at this point in their operation it is highly unlikely they would still be in business.

[BruinEric]

For HE .5/1, there always seem to be a LOOOOT of pots that are under $5 where they take rake but give nobody bonus points.

With low-stake NLHE, almost all pots are under the $0.25 rake threshold, but still teeny bits of rake vanish from the table.

So with low-stake games, I think they're truly nickel & diming their way to decent money.

Add the other games in (example: raketastic Omaha/8, higher limit action, tourney play fees, etc.) and I think they're doing okay.

Then subtract what must be a reasonable cost of doing business (they don't exactly need massive infrastructure and equipment) and I think you've got profit-making.

[lefty rosen]

You don't have to rape the games to make a profit. The party model will die soon enough. I think sites could half rake at a max of 1.5 and make huge money. What are your operating costs compared to a live casino?

I also agree that Absolute is making a profit. All the hands that dont get raked at the low limits add up. I dont think they would keep offering bottomless bonuses if they keep losing money on them.

Im also seeing that Absolute is growing slowly. Their creeping their way up. You now see 12,000 players at peak time. Hopefully they keep on growing.

[BigBiceps]

I think that Absolute is probably breaking even on the low limit games, but they are gaining customers, and market share.

I think they have a good business model, they are improving their software, and I think they will eventually be a major player like party and stars. I just wish I had signed up for the other incentives instead of being an idiot.