How to fix rakeback

[smackinyaup]

Is daily rakeback really that great? Why not weekly? When I first started online poker I never cleared bonuses that were released in $10 increments. It never felt like anything was happening. But when I had a $600 payment looming in the future you can bet your ass I played me some poker.

It's all the same but it feels different when you have specific days to look forward to with bigger payments. Let people check the balance daily but give them that bigger chunk once a week so they can feel the effect it has on their bankrolls.

It's like lowering the rake vs. rakeback. Who do you think would have better players? An affiliate who says they can reduce your rake by 30% or an affiliate who says they can give you 30% rakeback? It's the same thing but the payments into the account feel way better than knowing you paid less rake.

I'm sorry if this post misses the bigger point but I do agree with everything else that's been said so far.

[Beanie]

the issue isn't what is better for players. Certainly both are good and I would take either and so would every other rakeback operator.

What the big guys will tell you is that they do automated rakeback but it is my experience that this causes more problems than it is worth.

Monthly is too long. I would be Ok with weekly but having a guy broke for any period of time is bad for a room. So that is why I side with daily.

We are mostly talking to ourselves though. Nothing will change. I just wanted to be able to point that this was a reasonable solution. I have brought this same thing up for 5 years.

[PPP]

Most players play bad. Most players tilt. Many of these players will play down to nothing on days they are losing. Kicking them back money a week later when they are off tilt has considerable merit for a cardroom. I would guess it weekly would lead to more rake for cardrooms and more players who don't disappear for ever.

Daily payments also begs the question of why not just lower the rake.

[Beanie]

Originally Posted by PPP

Daily payments also begs the question of why not just lower the rake.

I think that extra rake pays for a lot of promotions and ads. I don't have any problems with rooms maintaining the rake levels of today as long as they are putting forth a decent effort with some of that money.

I am officially OK with weekly rake. But we are far from that in today's marketplace.

[mjmurphy53711]

Doesn't that really come down to the fact that most of these poker sites make millions of dollars and for some odd reason refuse to hire and train an adequate support staff to respond to customer queries?

[Ridge]

Originally Posted by PPP

Most players play bad. Most players tilt. Many of these players will play down to nothing on days they are losing. Kicking them back money a week later when they are off tilt has considerable merit for a cardroom. I would guess it weekly would lead to more rake for cardrooms and more players who don't disappear for ever.

Daily payments also begs the question of why not just lower the rake.

The point is not how much the rake is. Just like walmart, people like to "save" some money. Even better than that though, people like rebates. it's a great marketing ploy.

I would guess that tons of players have no clue what the rake % is that they pay at the poker rooms. But when they start getting $20 payments back every week, they will be hooked.

So, for myself, lowing the rake would hurt us more than anything. People want to think they are getting a batter deal and the idea of actual cash back can never be replaced..

[RCNastermind]

I'm not sure how anyone can really argue against what Beanie said, and it seems pretty silly that we aren't at this point already. The real question is: What can we do to attempt to move the industry in the correct direction?

[JohnG]

I am by no means an expert on this topic but I think it's really sad that us as affiliates have to come up with these sorts of solutions, it honestly astounds me. You would think that whoever is on top of the rooms would be focused on making their operation highly efficient, safe for players and focused on making as much money as possible. Just doesn't make any sense to me at all. Anyways, hopefully one day things will shape up.

[PPP]

Originally Posted by Ridge

The point is not how much the rake is. Just like walmart, people like to "save" some money. Even better than that though, people like rebates. it's a great marketing ploy.

I would guess that tons of players have no clue what the rake % is that they pay at the poker rooms. But when they start getting $20 payments back every week, they will be hooked.

So, for myself, lowing the rake would hurt us more than anything. People want to think they are getting a batter deal and the idea of actual cash back can never be replaced..

Daily rakeback is on the one hand absolutely crazy. It tells the players how much they are getting raked, and yes about half the players don't have clue how much is being taken. This is one reason rakeback is a nutso idea at its core. No place that has offered poker in the b&m world has ever deemed it a good idea to say "here is 100 of the 300 dollars we raked from you today." Bad bad idea.

Not-bright players like rebates, just like a lot of people like tax refunds instead of having the money all year round.

There is an inevitable cycle here. Daily rakeback will lead to lowered rake because it is an incomprensibly illogical idea to take $1 from a person and give him 30 cents back ten minutes later. One reason rakeback survives now is it is so screwed up. Doing it "right" renders it stupid (say giving rakeback after every HAND).

The only way rakeback makes sense if done "right" is if it is a tiered bonus system -- at the end of the week (or month) if you have been raked something above a certain level, you get back more. Players get chunks of money, but there has to be a motivational bonus point. All players just getting 1/3 back is stupid, just lower the rake 1/3, and you save millions or hundreds of thousands of dollars in overhead. Make it so some people get 20%, some 30% and some 40% (so the cardroom pays out 1/3 total), and there you have something logical that also encourages play.

[GoodKarmaKid]

Delete me

Answer already provided above, duplicate post.