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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 nee
by 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.