tag:blogger.com,1999:blog-7938736.post112965936310224476..comments2023-10-28T08:01:40.730-07:00Comments on Sound of a Suckout: The State of Party RakebackScurvyDoghttp://www.blogger.com/profile/12475986616947247959noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7938736.post-1130813243041433752005-10-31T18:47:00.000-08:002005-10-31T18:47:00.000-08:00Another big reason is that a lot of bigger affilia...Another big reason is that a lot of bigger affiliates hate having to compete with rakeback and the fact that it becomes a bidding war to retain players on your tracker. Affiliates will just bid more and more to their players in rakeback until they are earning nothing. At the end of the day there are better ways for poker rooms to incentivise play than offering rake back such as loyalty programs, special tournaments, freerolls etc etc. Expecting rakeback is like asking your real estate agent not to charge you for selling your house. It is the cost of playing poker and I predict that eventually all rooms will put an end to rakeback once we start seing some more mergers and folding of online poker rooms.Poker.comhttps://www.blogger.com/profile/03701184844047217270noreply@blogger.comtag:blogger.com,1999:blog-7938736.post-1129738186569409592005-10-19T09:09:00.000-07:002005-10-19T09:09:00.000-07:00Ah but they do profit from giving rakeback...becau...Ah but they do profit from giving rakeback...<BR/><BR/>because what's the rake from a player who moved to UB's new skin because Party wouldn't offer rakeback.<BR/><BR/>0Anonymoushttps://www.blogger.com/profile/18069654181152145893noreply@blogger.comtag:blogger.com,1999:blog-7938736.post-1129662131313327792005-10-18T12:02:00.000-07:002005-10-18T12:02:00.000-07:00Mr. Wonka,It's a tricky thing, as far as how Party...Mr. Wonka,<BR/><BR/>It's a tricky thing, as far as how Party (or any online poker site) deals with rakeback. <BR/><BR/>In a perfect world, they wish that affiliates didn't exist and that no one knows the meaning of the word rakeback. They would much rather keep that extra 15-30% they pay out. From the sites' point of view, a business model that didn't involve affiliates or rakeback would be optimal.<BR/><BR/>In the real world, they need affiliates, and have all embarked down a road where they pay affiliates 15-30%. They can't really back out now even if they wanted to. So they're stuck with affiliates. And affiliates are greedy, and started rolling out and promoting rakeback programs that pay back a certain percentage of their profits, as the affiliates realized that through volume they could make even more money.<BR/><BR/>Which benefits Party, too, in theory, but there's a tipping point where too many players getting rakeback negatively impacts Party's bottom line. Party doesn't mind paying affiliates (and in theory don't care what affiliates do with that payment as far as incentivizing players), but what makes Party crap in their pants is the thought that the average fish at Party becomes aware of rakeback and signs up a second account solely for it. It's especially painful if it's a player that Party acquired themselves via expensive tv advertising, who previously didn't sign up through an affiliate. Party instantly goes from getting 100% of that player's rake to 70-80% of it, with no additional benefits.<BR/><BR/>So yeah, for new players that would come through an affiliate anyway, Party doesn't care whether what they pay the affiliate is redistributed as rakeback or not. Party gets the new player regardless at the cost of 15-30% of their total rake.<BR/><BR/>For existing players not already signed up through an affiliate (or for players who signed up through an affiliate who elected to take the cost per acquisition payment plan), it kills Party for them to discover rakeback and create a new account solely for it. They instantly lose 20-30% of that player's rake, which previously went right into their pocket.ScurvyDoghttps://www.blogger.com/profile/12475986616947247959noreply@blogger.comtag:blogger.com,1999:blog-7938736.post-1129660620839368652005-10-18T11:37:00.000-07:002005-10-18T11:37:00.000-07:00excellent post, per usual. what a wacky crazy worl...excellent post, per usual. what a wacky crazy world poker has turned out to be. <BR/><BR/>damnit, email me.Ignatioushttps://www.blogger.com/profile/09296756213225560859noreply@blogger.comtag:blogger.com,1999:blog-7938736.post-1129660431838509302005-10-18T11:33:00.000-07:002005-10-18T11:33:00.000-07:00I know I must be missing something huge here... bu...I know I must be missing something huge here... but why does Party (or any site for that matter) care about what an affiliate does with their affiliate monies? It only seems to serve them better as the affiliate can actively pursue future poker customers. They don't lose anything as they are already paying the affiliate. It seems as it is easy enough to track individual stats (as other sites do it... and as you say at a flick of a switch).<BR/><BR/>What am I missing?WillWonkahttps://www.blogger.com/profile/06154883018461460762noreply@blogger.com