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Originally Posted by Jeremy
What is happening is that people are sending mass players that make the minimum deposit, play the minumum amount of hands and then the rooms owe a BIG CPA.
In other words affiliates are trying to roll us for the big CPA's, and as you can imagine rooms are not very keen to this and are saying "No New Trackers".
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I do not think this is an entirely fair characterization.
The vast majority of new players are FISH.
The system requires them for the so-called big players to feast off.
The fish are not entirely stupid, and are legitimately hesitant to deposit a large amount of money. The Poker Rooms know this, and set a low enough minimum for most Fish to bite at.
The problem is that $25 is not going to last a fish very long, and a lot are going to bust out. When they get more money available, they may or may not re-deposit....depends on how they felt about their experience with the site, the software, user-friendliness, whether they got a good run for their money...whether they felt the Poker Room gives a hoot about their business.
I would love to Promote Bodog....they are incredibly consumer-oriented and have tremendous customer relationship savvy. Fish, like me, will continue returning to a site like that time and time again.
A site that has tacky looking software, that does not bother to make their tournament listings user friendly and organized in an intelligible manner, that does not organize the ring games in a logical fashion, and has very few games available at different sized tables - is not going to make a fish very eager to come back and risk some more money.
I referred two players to Purple Lounge, both busted out, one of them redeposited...neither one enjoyed their experience - relative to certain other sites. Supposedly, Poker is for Entertainment purposes...they have a budget they have to live by, and not a bottomless bankroll for Poker purposes.
Neither one of those players lasted long enough to meet bonus requirements, I am sure. So, there was no extra loss to the room there.
So, let's say a better player lasts longer and now gets a $100 bonus.
The Poker Room is now out the $150 CPA PLUS the $100 bonus, which has to be deducted from whatever Rake was generated.
So, the Poker Room is not that much further ahead with the better player UNLESS the better player will come back and play some more and generate some more rake and keep the tables filled and churning more Rake.
What determines that? Well, I assume it is how much they enjoyed their experience with the Room and whether they can exploit the games/fish.
If they cannot find any fish to exploit, they will move on to another room.
Why bother staying? Unless they really enjoy the play for entertainment purposes.
Poker Rooms are no different from casinos, they need a steady supply of small fries to be their bread and butter, because there is only a limited number of whales to go around. The Nickel slots are a huge source of revenue for some casinos.
I am sorry, but I have not been in this business long enough to be attracting whales. I am not trying to "roll" anybody. It's a crapshoot, as far as I can see, in terms of what you are going to get in your nets when you go fishing.
Maybe the more fishing I do, I'll get better at it.
I understand Corpfan's point of view, and Jeremy's.
The arithmetic does not appear to add up: $150 CPA expenditure versus income of the rake on only $25, i.e. only $1.25 seems like a HUGE deficit.
On the individual player basis, it's a huge loss.
But, it is also a Marketing expense, and an opportunity expense, and it creates a churn of new players and indirect benefits to the Room other than simple Rake.
But, I understand that Rake is the bottom line, eventually.
Maybe the $150 CPA is a marketing expense that needs to be spent where it can have the biggest bang for the buck.
And maybe that is not with small, inexperienced affiliates....like ME.
But, still, it requires large schools of small fish to attract the killer whales.
And if a room is attracting enough fish, it will naturally attract the bigger ones, sooner or later.
And I thought that one reason the PAW program made sense was to create a larger volume of new signups...in other words, casting a bigger net, and hopefully catching bigger fish.
I am sorry it is not working...so far.
But, like I say...isn't it kind of short sighted to only look at one or two month's revenue, and just look at the individual player calculation?
Aren't there indirect benefits?
Why do the rooms need to take these measures in the first place?
I look at places like Tony G's and I just don't see why I would want to play there. There is never the selection of games I would be attracted to.
And the same thing is happening with Mansion...unless I want to play in their Poker Dome qualifiers, there is no product there that attracts me, tournament wise...and very little in the way of sit n go's or ring games.
But they have made a business decision not to offer very many MTTs other than their Branded qualifiers and satellites.
Time will tell if that model works, I guess.
But clearly, they have defined the type of player that they want, and they appear not interested in catering to any other type of player....and if you are not interested in their product you do not have to play there.
Once you have reached the top, you can afford to be exclusive, I guess.
A company that does not want to pay for the fish, either by marketing, or providing superior customer service and entertainment, will not get them.
And it will not get to the top, numbers wise...although they may be able to survive being an "exclusive boutique" type of operation.
Please educate me if I have missed the point.
I saw the PAW affiliate program to be an excellent opportunity for me to get my feet wet in the industry, and to get started earning an ROI.
Participating in PAW deprives me of the opportunity to earn a reputation and a relationship on my own with the various companies....all the credit goes to PAW.
I have never heard back from a certain Affiliate Manager since I told him I was going to promote his product through PAW.
Participating in PAW will be more important than ever, if companies refuse to pay me because I am US based.
I would like to see this work, also.
But, shouldn't there be better communication about what programs are still a priority, and should be pushed, and which trackers work?
Will the trackers issued for Purple Lounge continue to be honored, for example? For how long?
Just let people know what is going on, please.