Rakeback negotiations question

[rt1]

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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

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Why give him a higher %? Why not just bankroll him. There are many affiliates who do this, they will give a player some money to play with and a reduced (0-10%) rakeback rate. A long term player will easily rake the money back to the affiliate and you dont have to deal with splitting up the profits from the player you've staked. I have a number of affiliates who do this and they do very well for themselves. Its the new 'staking'.

[rusty JEDI]

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The player should be responsible for negotiating a deal that works in his best interest.

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How do you suppose they do this when they dont know what is what because things are kept censored in the forums.

rJ

[rusty JEDI]

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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.



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I dont see any of this making a difference when they are paid a % of the mgr.

rJ

[rt1]

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The player should be responsible for negotiating a deal that works in his best interest.

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How do you suppose they do this when they dont know what is what because things are kept censored in the forums.

rJ

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youre kidding me right? come on, if you really want to know what %s you can get its not hard. contact a a few affiliates and sell to them. you really want my advise with your wise ass remarks?

[rt1]

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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.



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I dont see any of this making a difference when they are paid a % of the mgr.

rJ

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Affiliate makes 1% off each of his high volume players and 3% off each of his small stakes players. 15/30 player pays 10,000 in rake a month, .5/1 player pays 100 in rake a month. which player is more profitable for the affiliate?

10k * .01 = 100$ profit to affiliate
100 * .03 = 3$ profit.

hard math, yes i know...

now do you see why affiliates will fight for the high volume players, and why they get better deals.


oh god, i just said do you see why...
[img]/images/graemlins/grin.gif[/img]

[rusty JEDI]

Sorry if im making you upset, that is not my intention and i am not here to simply fight devils advocate style. I dont see it as advice, but as discussion.

Im just trying to argue the point that a single player does not add a significanat amount of workload to a person who already has everything set up with 50+ players to not offer the same % whether they are multi 15/30 or single micros. Especially when you add in the value of that players potential growth (especially consider they find you through 2+2 or some other method that shows their interest in learning and taking it serious = likely success) and the value of giving them more back helps them move up quicker.

[rusty JEDI]

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Affiliate makes 1% off each of his high volume players and 3% off each of his small stakes players. 15/30 player pays 10,000 in rake a month, .5/1 player pays 100 in rake a month. which player is more profitable for the affiliate?


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Taking this into your specific business which i hope is okay, if not just PM. If i am a high volume player do i automatically get the 1% margin and how do i know im getting it?

Isnt $100 per month a lot to be making off me? At what point would you just pay them a flat fee that works out to less than 1%. Is there a player "that high volume?"


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10k * .01 = 100$ profit to affiliate
100 * .03 = 3$ profit.

hard math, yes i know...

now do you see why affiliates will fight for the high volume players, and why they get better deals.



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I of course see why they fight for the high volume players but not why they get paid a greater % than the low volume player. I will never understand that as we are obviously split ideologically here. But, im right.


rJ

[rt1]

i agree with you when you say you want the player to move up, nothing makes an affiliate more happy.

however, high stakes players will always want more than the low stakes players. they are making the affiliate more money, they deserve to be paid better. so, you either pay them more, or pay everyone the same amount. if you pay everyone the same, your margin as the affiliate will be soooo small, say .5% or 1%, maybe less. the affiliate cannot survive off this little and will go bust. oh yeah, good luck proving that you are paying your players everything you get minus the 1%... this board shows how much you guys trust us... [img]/images/graemlins/frown.gif[/img]

[rt1]

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[ QUOTE ]

Affiliate makes 1% off each of his high volume players and 3% off each of his small stakes players. 15/30 player pays 10,000 in rake a month, .5/1 player pays 100 in rake a month. which player is more profitable for the affiliate?


[/ QUOTE ]



Taking this into your specific business which i hope is okay, if not just PM. If i am a high volume player do i automatically get the 1% margin and how do i know im getting it?

Isnt $100 per month a lot to be making off me? At what point would you just pay them a flat fee that works out to less than 1%. Is there a player "that high volume?"


[ QUOTE ]

10k * .01 = 100$ profit to affiliate
100 * .03 = 3$ profit.

hard math, yes i know...

now do you see why affiliates will fight for the high volume players, and why they get better deals.



[/ QUOTE ]

I of course see why they fight for the high volume players but not why they get paid a greater % than the low volume player. I will never understand that as we are obviously split ideologically here. But, im right.


rJ

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i dont understand, i have given you a solid example of why affiliates fight harder for the high volume guys. offering higher %s is a way of fighting, it will get them to sign with the affiliate. why does manny make more money than nixon? this is very simple... maybe i am misunderstadning.

[rusty JEDI]

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i dont understand, i have given you a solid example of why affiliates fight harder for the high volume guys. offering higher %s is a way of fighting, it will get them to sign with the affiliate. why does manny make more money than nixon? this is very simple... maybe i am misunderstadning.

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Yes, I understand why they fight for high volume guys. But, I don't agree with your arguments for why the low limit guys cant get the same %. We will not agree on this.

Manny generates x revenue for the team
Nixon generates y revenue for the team

They should both be paid the same % of their x and y.

rJ