Rakeback and revenue share

Daveshoelace · #1 10-03-2007, 02:34 PM

Hi Guy, another noob question.

How is it that rakeback websites can offer higher rakeback than the revenue share that site gives to affiliates? Ive seen some site offer 30% rakeback for a poker room with a revenue share of 25%.
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Am I missing something obvious or do they just get a better deal?

eXplicit · #2 10-03-2007, 02:43 PM

they just get a better deal;-)

Zilla · #3 10-03-2007, 04:00 PM

As always Barry it's about volume - the rakeback sites drive big volumes of players and mostly high value players to the rooms and can negotiate higher % MGR deals as a result of that.

One of the reasons why the rakeback market has a pretty significant barrier to entry in my opinion because a new rakeback affiliate just can't compete with the %'s being offered by the established rakeback affiliates.

mfosouto · #4 10-03-2007, 04:12 PM

That's true, this affiliates may receive 40% revenue share, while giving back 35%.

Daveshoelace · #5 10-03-2007, 06:00 PM

I thought as much, its not really an avenue I wanted to go down, just wondered why there was such a difference.

I'm learning, cheers guys.

GregK · #6 10-03-2007, 10:01 PM

Does anyone know what the average rakeback player's attitude is, regarding RB %'s ???

As in... are most out for every last % they can get, or would they take a few % less for stellar service & support?

Thanx

DealerDan · #7 10-03-2007, 11:13 PM

Quote:

Originally Posted by GregK

Does anyone know what the average rakeback player's attitude is, regarding RB %'s ???

As in... are most out for every last % they can get, or would they take a few % less for stellar service & support?

Thanx

From my experience, it's the latter. I've got a loyal playerbase for my rakeback site that know they get top-notch support/service, so they'll take less of a percentage just to stay under us. Or they'll e-mail me and say "Hey, I notice this other rakeback site is offering 30%, whereas you're only offering 20%/not offering rakeback there at all. Could you match that 30%/offer rakeback there, so I can go under you?"

GregK · #8 10-04-2007, 02:20 AM

Thanks Dan

Thats golden info there, I owe ya one.

(sigh of relief)

absentx · #9 10-10-2007, 05:01 PM

Quote:

Originally Posted by DealerDan

From my experience, it's the latter. I've got a loyal playerbase for my rakeback site that know they get top-notch support/service, so they'll take less of a percentage just to stay under us. Or they'll e-mail me and say "Hey, I notice this other rakeback site is offering 30%, whereas you're only offering 20%/not offering rakeback there at all. Could you match that 30%/offer rakeback there, so I can go under you?"

Yeah this is very true, many loyal customers are just happy to recieve good service, or reliable service.

I will say this though, sometimes the "big dawgs" appear only to be out for the highest percentage, and they try to rastle you for every last dime...but this is usually only at the beginning. If you can get past the % and show good service, it usually is a big help.

From what I have found anyways..