3 ms·

Why don't more poker players start rakeback sites?

by rms 16y ago

jhamburger 16y ago
There are tons of them, but some of the big sites like Pokerstars handle rakeback internally (and indirectly).
jiganti 16y ago
It's a market where people spend a lot of money on search engine optimization, but the best asset to starting a rakeback site is being affiliated with high-volume pros who are willing to sign up for a few sites under your rakeback site. An insider's tip on rakeback SEO- the people who are using Google to find rakeback sites generally aren't experienced players, and won't make you as much money as you might hope. (Of course the ideal situation is that you sign up a few hundred inexperienced players and after a year or two a dozen or so have developed their game to the point where they are making you more than all your original sign ups combined)
rograndom 16y ago
Do you mean start one from scratch or join an existing rakeback provider as a sub-affilate? If you're starting one from scratch, the players under you will need to be putting massive volume for you to offer competive rates. For example, FullTilt will pay you 20% of the rake paid by the players signed up under you. Compare this to the existing rakeback providers who generally payout 27% for fulltilt. You're losing money here. You'll have to move up 2 tiers to having your players generate at least $25,000 in rake per month to get to a 30% payout tier, where you're making 3%, not counting overhead and acquisition costs. If you get to $50,000 per month, you'll get another bump to 35%. How many players do you think it'll take to get to that level? The other option is to sign up with an existing rakeback provider and leverage their platform. They already have a ton of players and are able to offer top payouts across multiple sites. You'll generally get 2-5% of your players rake here, but you only have acquisition costs and the sites generally run promotions for your players like freerolls. The second option is what most of the training sites use and that is their primary income stream, even though they're charging $25-30/mo for access. If they're able to make the players in their downline better, the players will play longer, move up in stakes and generate more rake. In general pros don't want to waste money acquiring a player who isn't really good, deposits $50-$200, generates $0.59 in rev share for the pro, goes broke in a week and never plays again.

Why don't more poker players start rakeback sites?

by rms 16y ago

Why don't more poker players start rakeback sites?

jhamburger 16y ago

There are tons of them, but some of the big sites like Pokerstars handle rakeback internally (and indirectly).

jiganti 16y ago

It's a market where people spend a lot of money on search engine optimization, but the best asset to starting a rakeback site is being affiliated with high-volume pros who are willing to sign up for a few sites under your rakeback site. An insider's tip on rakeback SEO- the people who are using Google to find rakeback sites generally aren't experienced players, and won't make you as much money as you might hope. (Of course the ideal situation is that you sign up a few hundred inexperienced players and after a year or two a dozen or so have developed their game to the point where they are making you more than all your original sign ups combined)

rograndom 16y ago

Do you mean start one from scratch or join an existing rakeback provider as a sub-affilate? If you're starting one from scratch, the players under you will need to be putting massive volume for you to offer competive rates. For example, FullTilt will pay you 20% of the rake paid by the players signed up under you. Compare this to the existing rakeback providers who generally payout 27% for fulltilt. You're losing money here. You'll have to move up 2 tiers to having your players generate at least $25,000 in rake per month to get to a 30% payout tier, where you're making 3%, not counting overhead and acquisition costs. If you get to $50,000 per month, you'll get another bump to 35%. How many players do you think it'll take to get to that level? The other option is to sign up with an existing rakeback provider and leverage their platform. They already have a ton of players and are able to offer top payouts across multiple sites. You'll generally get 2-5% of your players rake here, but you only have acquisition costs and the sites generally run promotions for your players like freerolls. The second option is what most of the training sites use and that is their primary income stream, even though they're charging $25-30/mo for access. If they're able to make the players in their downline better, the players will play longer, move up in stakes and generate more rake. In general pros don't want to waste money acquiring a player who isn't really good, deposits $50-$200, generates $0.59 in rev share for the pro, goes broke in a week and never plays again.