being a backer

[Marlow]

I am considering staking a friend of mine who is a very good poker player but stopped playing for a while to try and start a business. I'm looking at this as an investment opportunity. Does anyone here know how these arrangements are usually set up? He's an online limit ring game player. My thinking was that I'd give him 2k to get him started at 2-4 and maybe 3-6. Is this enough? Starting at these limits, he's capable of making 5k within a month easily.

Also, I don't have a clue how to structure our deal as I have no experience with this at all. I want to maximize my potential return while allowing him to build a roll as quickly as possible. Any and all ideas and input are welcome.

Thanks,
Marlow

[James282]

Hey Marlow, I'd properly stake him with a 500ish BB bankroll and say that you'll take 25% of profits and rakeback at the end of the arrangement. I've done this and been very successful with it, while still helping the person build a roll at a reasonable rate.
-James

[Alex/Mugaaz]

[ QUOTE ]
Hey Marlow, I'd properly stake him with a 500ish BB bankroll and say that you'll take 25% of profits and rakeback at the end of the arrangement. I've done this and been very successful with it, while still helping the person build a roll at a reasonable rate.
-James

[/ QUOTE ]

Are you serious? I can't imagine ever wanting to bankroll anybody unless my interest was personal and not from a money making standpoint.

[Marlow]

Hi James,

Thanks for the response. How do determine when to end the arrangement?

Thanks,

Marlow

[Marlow]

[ QUOTE ]
[ QUOTE ]
Hey Marlow, I'd properly stake him with a 500ish BB bankroll and say that you'll take 25% of profits and rakeback at the end of the arrangement. I've done this and been very successful with it, while still helping the person build a roll at a reasonable rate.
-James

[/ QUOTE ]

Are you serious? I can't imagine ever wanting to bankroll anybody unless my interest was personal and not from a money making standpoint.

[/ QUOTE ]

This guy has a lot of pride. He wants me to make money off of him. I don't think he'd do it any other way.

Marlow

[Sponger15SB]

[ QUOTE ]
[ QUOTE ]
Hey Marlow, I'd properly stake him with a 500ish BB bankroll and say that you'll take 25% of profits and rakeback at the end of the arrangement. I've done this and been very successful with it, while still helping the person build a roll at a reasonable rate.
-James

[/ QUOTE ]

Are you serious? I can't imagine ever wanting to bankroll anybody unless my interest was personal and not from a money making standpoint.

[/ QUOTE ]

I feel the exact same way, which is why I don't really think James' staking agreement is that bad. [img]/images/graemlins/laugh.gif[/img]

[PittRounder]

I recently staked a friend who went broke due to bills and poor money management. I received 70% percent of the profits and he kept the remainder.

I don't think you should stake anyone without receiving at least half of the money; you're taking all of the risk.

The staking arrangement should end when your friend builds a big enough roll to play on his own. That's when our agreement ended, and I'm still wishing it hadn't.

[tripdad]

i staked a friend recntly, and our arrangement was as follows:

1) i give him 3K, he pays me back 3.6K.

2) once per month, he gives me 20% of his winnings toward re-imbursing me.

3) until i am paid back in full, i keep all rakeback payments (he signed under my affiliate acct.)

4) if he loses all the $$$, he owes me nothing....i take all the risk.

if i recall, i made around 1800 profit off the deal in 3 months (maybe 2). there was a post i made about it in this forumn several months ago, but alas...i am too lazy to look it up and post a link.

[James282]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Hey Marlow, I'd properly stake him with a 500ish BB bankroll and say that you'll take 25% of profits and rakeback at the end of the arrangement. I've done this and been very successful with it, while still helping the person build a roll at a reasonable rate.
-James

[/ QUOTE ]

Are you serious? I can't imagine ever wanting to bankroll anybody unless my interest was personal and not from a money making standpoint.

[/ QUOTE ]

I feel the exact same way, which is why I don't really think James' staking agreement is that bad. [img]/images/graemlins/laugh.gif[/img]

[/ QUOTE ]

That's more than generous, especially when I'm essentially turning over 10k to 15k for an extended period of time. Plus, anyone who I would feel right staking would WANT me to make a profit off of it, because they would not be freeloaders who think they are better than they actually are. Here's a hint, if someone is not currently playing a higher limit because they haven't accumulated the bankroll: they are almost never ready to play said limit full time. So there are only a few exceptional situations where I think staking someone is ultimately a good idea.
-James