When will rakeback be gone?

[BillFranklin]

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at any decent sites RB is dead.

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the party and stars are the only sites that don't have it.

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Please name a site that has
1)RB
2)good game selection above .5/1 Limit and 25 NL.
3)more than 5,000 registered players.
4)Actually has juicy games to play in.

[lighterjobs]

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at any decent sites RB is dead.

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the party and stars are the only sites that don't have it.

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Please name a site that has
1)RB
2)good game selection above .5/1 Limit and 25 NL.
3)more than 5,000 registered players.
4)Actually has juicy games to play in.

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eurobet a month ago.

[lighterjobs]

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who don't even try to play winning poker but play break even poker and rely soley on rakeback to be winning players.

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*raises hand*

[GrannyMae]

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at any decent sites RB is dead.

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the party and stars are the only sites that don't have it.

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Please name a site that has
1)"incentives"
2)good game selection above .5/1 Limit and 25 NL.
3)more than 5,000 registered players.
4)Actually has juicy games to play in.

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FYP


answer = potty

[KKsuited]

I agree, no site worth a [censored] offers rakeback. You can add Paradise to your sites that don't allow RB. Seriously, it's pretty easy to see all the sites that allow RB are terds.

I don't really think it will go away though because the terd sites can't compete unless they offer it.

The terds will be terds and the bigger guys will have armies of affiliates promoting them and bringing them new players. That's how it works. Most good affiliates won't promote sites that allow RB. Who wants to make 3% of someones play? That's not worth anyone's time. Wonder why FullTilt spends a zillion dollars an advertising and can't get more than 8k players at peak times. Their cartoon software is not helping, but the fact that the major affiliates out there won't send them one player isn't helping either.

If someone can show me how RB makes good business sense over not allowing RB, I'll give you $100.

[Sniper]

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The terds will be terds and the bigger guys will have armies of affiliates promoting them and bringing them new players.

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There is only one "big" online poker room and that is Party Poker with 50% market share!


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Most good affiliates won't promote sites that allow RB. Who wants to make 3% of someones play? That's not worth anyone's time.

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There are many rakeback affiliates (and this business is growing) that would disagree with you. You don't have to look far to determine that some of them are making enough to employ several people!



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If someone can show me how RB makes good business sense over not allowing RB, I'll give you $100.

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I will claim the $100... Just look at the events of the past month, with both Party and UltimateBet shutting down their skins that were offering better incentives (ie rakeback). Both of these actions were a direct response to the Profitable Business model of using Rakeback to attract high volume players. They both needed to protect their business from this highly competitive practice.

The average player is woth ONLY about $100/month to a poker room... these high volume players that chase rakeback deals are worth many thousands of dollars/month each to a poker room.

The investment community, specifically global markets research analysts were warning about the potential dangers of Rakeback destroying Party's business. There reports were released roughly a week prior to the skins split, and were a significant contributing factor in the timing.

If you'd like I'm happy to provide some quotes from those reports, but the bottom line is they all agree that poker rooms supporting rakeback are a threat to Party, and that Party's slowdown in growth is directly attributed to their loss of high volume players moving to other sites for rakeback.

Some poker rooms are now solely relying on rakeback affiliate advertising to drive traffic to their sites and they have been very successful in doing so. The margins in this business are huge and barriers to entry are small.

This trend will only continue as knowledge of rakeback grows!!!

Please let me know how you'd like to transfer the $100 [img]/images/graemlins/wink.gif[/img]

[Pokeraddict]

If someone can show me how RB makes good business sense over not allowing RB, I'll give you $100.

I'll take a free $100 too. Basically it recycles money from people who would have busted otherwise.

From an article I wrote on the topic.

The monthly rakeback payments turn many breakeven or losing players into winners. For example a casual -.25 BB/100 (big bets per 100 hands) rakeback player multi tables 15 hours a week of $5/$10. At the end of the month this player will earn around $1000 in rakeback. At the tables they lost around $400. With rakeback the player nets a profit of $600 where before he would have been a loser without rakeback. The $1000 rakeback payment represented $4000 in rake generated for the poker room. With this $1000 payment the player now can play another month without having to redeposit. If the player plays the same amount of hands the next month he now generates another $4000 in rake for the poker room and the poker room now gives him another $1000 in rakeback. At some point this player would have busted but now they have profited some off of their hobby and the poker room can make $3000 a month off of their action, $3000 in profit the poker room may not have had otherwise if the player busted and never played at their room again. Now if you take a serious player that plays 6-8 hours a day you can multiply these numbers by 3 and see why rakeback is such a good idea for the online poker room industry. If you multiply this by the estimated tens of thousands of rakeback players out there you will see just how profitable rakeback is to the poker rooms.

[SinCityGuy]

Affiliates offer rakeback.

[Newt_Buggs]

I don't see affiliates removed anytime soon, and as long as affiliates are around some form of rakeback will exist.

[Dazarath]

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If someone can show me how RB makes good business sense over not allowing RB, I'll give you $100.

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Take an intro economics class and then you'll understand why rakeback makes sense as a business model (from the affiliates perspective).

Let's say person A is an affiliate. All he does is run a website to draw customers. People will sign up throught the site if they discover it before they discover the actual PP site.

Now, person B comes in. He offers free poker chip sets as an incentive to beat person A. He starts to take away some of the customers of person A.

Person C comes up with the following idea: hey, I get 25%, why not give 5% back?

Now person A responds with 10% rakeback and person B is left in the dust. Basically, the affiliates will keep under-cutting as long as they're making more money than what's "worth it" to them. Like, if person X's offer of 20% rakeback leaves him earning $1000 a month, and he feels that $1000 is a good price for the amount of time he invests into affiliating, but giving 21% would lower his profit to $800, which is not worth it, then he'll offer 20%. Basically, the affiliates wouldn't offer rates that are high enough to make the profit not worth the time. So somewhere between 0 and Y% (Y being the amount of MGR the affiliate receives), there are values that don't cut into the profit too much, but also make the customers happy.

Saying non-rakeback > rakeback just because the profit (in percentage) is higher, is like saying grocery stores should sell apples at $500 a piece, because who wants to sell apples at $0.50 when you could price them at $500?