My another 'novel'
(re: Stars RB) will be not so related to PLO, but I want opinions of PLO players first
Cliffs: Stars affiliates shouldn't get 18% of ring-game SN's rake, it's fairer to give 5% to them and 13% to players in promos (preferably Omaha-only
like at Ladbrokes in August 2012, though icwtdt
).
The problem is not that Stars don't have money to give 50% RB to SNs. It's just that they prefer to endorse a huge affiliate octopus,
paying them up to 30% of net revenue, which (for SNs) is 18% of gross rake, and prohibit almost all affils from spending these commissions on rake-based promos, thus killing the competition and protecting affil margins.
They think that this way they entice affils to prefer to send traffic to Stars and not to Euro networks, where affil profit margins are way lower than 18% and even than the famous 6% gross FTP used to offer - everyone is happy with 3% on networks now, and there's even no warranty that their signups won't be poached in several months.
This works in a way because there are lots of affils who deal with Stars only or at least put them on the pedestal, do almost nothing to help players, only write low-quality poker-related articles at best. They follow the principle 'send players and forget about them'.
But, although Stars are the main force that entices non-poker people into poker, it turns out that many serious players quit Stars when they see that this policy hits their bottom line as effective rake on Euro networks is smaller; and Stars' business model is to make people serious about poker, isn't it?
And I can't say that other sites don't bring recreational value to poker: they advertise in the media as well and convert people to poker from sports betting or casinos, and note that they are generous enough to give good RB% to players.
So I'll say again that Stars should pay more attention to efforts that affils make to bring traffic, as well as its quality and lifetime (affils should help people to find strength to play more when bust, burnt out or hurt by the site in other ways), and adjust commissions accordingly. Anyway, I feel that a 18% margin is way too much, hardly anyone deserves it; I'm sure most of those who deserve it would continue working even it was cut to 5% (resulting in RB rise from 37% to 50% for new SNs
).
After all, Lock affils get 20% net, which is like 5% gross after numerous Lock promo payments are deducted, and they're still happy to help players with cashouts and other issues that are, sadly, far more abundant at Lock than Stars.
Last edited by coon74; 02-02-2013 at 02:58 PM.
Reason: Added link to Pokerstars Partners commission rates.