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Originally Posted by Jeremy
In respect to PSO, these guys are genius as affiliates and finding a way to make a ton of money with CPA's, yet it is probably the worst business model in the world for online poker rooms.
Essentially you are telling players to go sign up, deposit, and play the absolute minimum amount of hands to get their chips, cards, table, whatever.
Then PSO collects the large CPA. Granted they do add a shit load of liquidity to rooms, but from the AM's I have talked to, this business models player value is terrible. PSO can send 1000 players a month to a room, and the only person making money is PSO.
In their defense, they are good group of guys.......and they do have a huge DB of real money players. But the overall player value on this type of business model sucks.
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at least it shows the rooms that they are trying to get the players to stay for a while, doesn't it?
Really, this whole issue boils down to a matter of Psychology....Any first year student should know that the slot machine is the ultimate role model for application of the principles of behavior modification.
The randomized schedule of reinforcement creates incredibly strong habit patterns which are resistant to extinction. Slot players will stay at their machine until they pee themselves, and beat somebody to near-death who tries to steal it from them!
Paying them off on every pull of the handle does not work. Never knowing for sure when you might win
DOES.
However, further research into the matter shows that habit strength with real slot players (and any gambling game) is strongest when reinforcement is encountered *early* in the player's experience of the game.
(Hit a jackpot in the first 10 pulls and you are hooked for life, but true randomization would mean that some players would not receive a single reinforcement for days!).
Players need to be saliently reinforced early in their experience of a new room, and then they need some form of randomized reinforcement that will keep them plugging away.
Incorporate the principle of the slot machine into the player's experience of a specific poker playing environment and you will have less retention problems, and more players who continue to come to the room out of "habit."
This means that the standard ploy of releasing $10 in bonus after 100 hands becomes nothing but a chore, and drudgery. And invites whores to multitable to work it off faster.
Wouldn't a randomized system make it harder to scam?
What could the rooms do to give new player's a zap of excitement early in their career, and keep them in a state of curious anticipation as to when they might get another reward in the future?
Some of the rooms give out a reward any time you get pocket Kings.
Any other Ideas?