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Originally Posted by Jeremy
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As a neophyte, I am surprised that rooms can afford to pay $100 and up CPAs. They are already in the hole for the matching bonus, which most have.
Player deposits $100, plays 500 hands, room has to give player $100, and - if it is Sun - has to give me $200 (can't wait until that happens one day!), and then there is PAW's cut.
So, room is out at least $300, plus lots of other costs.
For 500 hands raked at $1, they have collected $500.
So that leaves $200 net after bonus and commission for my player.
Oops...but don't forget that maybe they had to pay bonuses for 5 other players out of that $500 rake!
So, the room will not actually see my player's bonus and my commission covered until my player has actually played in the neighborhood of 3,000 hands at a buck, and has contributed one tenth of that rake, or about $300....and then they might start to see some ROI, and that could take a long time.
I cannot help but think that Party, for example, is interested in driving up their numbers for stock manipulation purposes...so people can cash out. However, that is for a different thread...but I really have trouble seeing how they can make any money out of the run of the mill players... so, I think these bonuses must be like loss leaders because the churning fish help to keep the sharks and whales happy and producing rake.
I agree with the partnership theory, even though it is pretty one sided, given the draconian terms the rooms all seem to have - where they are judge, jury and exectutioner and do not have to justify their decisions at all.
I can't afford to bribe the players to play....which is what I see rakeback/kickback/cashback as being....but I think I can come up with some promotional ideas that will keep players playing after they have claimed their bonuses....ideas that take into account "long tail" theory and Web2.0 principles....only time will tell.
Plus, I kind of think it is in my best interests to improve the playing ability of the players I send....for their sake and mine!
So, I think that sites that can educate their players, like Ryan is trying to do (rcnastermind) will be improving the value they bring to the rooms, and improve their negotiating power, in the long run. I will be sending my members to Ryan's site to learn how to play better....until I can provide similar quality content myself.
The longer those players can survive - and the more hands they can help generate rake on - the happier the rooms and I will be...and the longer I will survive as an affiliate.
So, I'd like to look at this from a partnership perspective....but, not having any deep and meaningful relationships with affilate managers/rooms, I think it just makes
common sense from an
enlightened self-interest perspective.
And that leads me to one of the only negatives I can see about the PAW program:
PAW gets the credit for the players, and I have no opportunity to be developing my own relationships with the rooms I will be promoting here.
I don't know how that is likely to change....but, I guess, some day, maybe I will have to leave the family nest and strike out on my own in order to form and nurture those "partnerships" Jeremy has worked so hard to attain and maintain.
I believe that I will always owe a debt of gratitude to PAW for providing a means to ramp-up more quickly than would have been possible otherwise.