Rakeback negotiations question

rusty JEDI · #1 10-04-2005, 03:48 AM

Ive read a bunch and it seems many affiliates pay different %'s if you 4 table 2/4 or if you 8 table 15/30 or if you 1 table .5/1.

Can someone explain the rational behind this. Seeing its all % based why?

rJ

craig r · #2 10-04-2005, 03:50 AM

Because even though it is based on a %, you are in effect making the affiliate more money by producing more MGR.

craig

rusty JEDI · #3 10-04-2005, 03:51 AM

For an affiliate who is at the max % from the site based on total mgr why is that a factor?

rJ

craig r · #4 10-04-2005, 03:57 AM

My guess is that it is to get the higher volume players to play with them as oppossed to another affiliate. Even if a high producing affiliate is "maxed out" with the site, they will still make more if they earn 3% off of a high volume player as oppossed to 4% from a low volume player. (These numbers are fictitious...but I am sure you knew that already [img]/images/graemlins/smile.gif[/img] ).

craig

StellarWind · #5 10-04-2005, 04:17 AM

[ QUOTE ]
Ive read a bunch and it seems many affiliates pay different %'s if you 4 table 2/4 or if you 8 table 15/30 or if you 1 table .5/1.

Can someone explain the rational behind this. Seeing its all % based why?

[/ QUOTE ]
Why do high volume customers in any business get discounts?

The affiliate spends time in handling your account (answering questions, making payments, resolving problems) that is largely independent of how much rake you generate. He needs to make enough money off of you to make it worth his trouble. If you are a big customer he can make that money off a smaller percentage. This is the cost-based explanation.

It's also more important to him that he wins the big accounts and that motivates him to try harder. This is the market-based explanation.

rusty JEDI · #6 10-04-2005, 04:35 AM

[ QUOTE ]

The affiliate spends time in handling your account (answering questions, making payments, resolving problems) that is largely independent of how much rake you generate. He needs to make enough money off of you to make it worth his trouble. If you are a big customer he can make that money off a smaller percentage. This is the cost-based explanation.

[/ QUOTE ]

I am claiming that the work of an affiliate is minimal enough that it shouldnt matter and they should be paid the same.

Im just out for the little guy.

rJ

rt1 · #7 10-04-2005, 05:37 AM

[ QUOTE ]
[ QUOTE ]

The affiliate spends time in handling your account (answering questions, making payments, resolving problems) that is largely independent of how much rake you generate. He needs to make enough money off of you to make it worth his trouble. If you are a big customer he can make that money off a smaller percentage. This is the cost-based explanation.

[/ QUOTE ]

I am claiming that the work of an affiliate is minimal enough that it shouldnt matter and they should be paid the same.

Im just out for the little guy.

rJ

[/ QUOTE ]

I work 7 days a week probably 6-8 hours a day. Actually, much more than that... because I am always getting phone calls / emails / random stuff 24/7. I am not complaining, I love my job, but by no means is it minimal work. Oh yeah, its 2:36am!

rusty JEDI · #8 10-04-2005, 05:50 AM

[ QUOTE ]

I work 7 days a week probably 6-8 hours a day. Actually, much more than that... because I am always getting phone calls / emails / random stuff 24/7. I am not complaining, I love my job, but by no means is it minimal work. Oh yeah, its 2:36am!

[/ QUOTE ]

The work per individual is minimal enough that i think the % should be the same for a 1 table .5/1 and a 4 tabling 15/30.

What other type things are put in place for that 1 table .5/1 player to get more as they move up? How often is this discussed outright, and what if its not discussed but you notice them up to 5/10 and 2 tables?

rJ

rusty JEDI · #9 10-04-2005, 06:03 AM

Adding a little more to this.

If you give the .5/1 players a higher % to start with he makes more money. Therefore he has more bb's and stays in the game longer and can move up to the next level faster and generate more rake helping everyone involved.

Pay that man his money....Now.

rJ

rt1 · #10 10-04-2005, 06:12 AM

[ QUOTE ]

The work per individual is minimal enough that i think the % should be the same for a 1 table .5/1 and a 4 tabling 15/30.

What other type things are put in place for that 1 table .5/1 player to get more as they move up? How often is this discussed outright, and what if its not discussed but you notice them up to 5/10 and 2 tables?

rJ

[/ QUOTE ]

I am going to make a generalization here, but the 15/30 player is probably playing a lot more than the .5/1 player. Therefore, he will rake off more money causing him to be a much more valuable player for the affiliate. The .5/1 player who single tables has no value to the affiliate.

Deals are not based on limits played, but on MGR (total rake paid). Obviously, a player who is playing the higher limits is going to have a much easier time increasing his MGR, so its generally the higher stakes players with the better deals.

If you are a low limit player, but think you will move up in the upcoming months you should def tell your affiliate about this. Try to get a deal for when you do $X in MGR, set some sort of tier. The player should be responsible for negotiating a deal that works in his best interest.