Quote:
Originally Posted by WSEX_Jeremy
Running a Poker site is just like any other business. In order to continue to operate, you need to cover the costs. It costs money to host, support, maintain, operate, develop, manage, promote, advertise and offer incentives to players. So, looking at Poker like that, it is basically all about the numbers. $x in Rake means that WSEX can offer $x in promotions as well as Operate the site. WSEX offered Poker NOT as a means to fill their pockets. As Fred has stated, we have given back Millions of dollars in Rake as well as taken huge losses by giving everything back. This is where I come in. I have had a great deal of experience in running Poker Rooms. You may not agree with the tournament structure, but it is proven and is not that far off from other sites given all of the other intricacies surrounding what WSEX offers back to the players currently.
The comparison to PokerStars or any other site out there is like comparing apples to oranges. WSEX.com is nothing like any other site out there. The reason is that we offer minimum 65% Rake Back to everyone. What one must understand is that because we do this, our Margin on Poker is minimal. On top of giving 65% back to everyone, we also offer you promotional tournaments. The money from these tournaments comes directly out of the 35% margin after giving you your money back. No other site out there does that, especially Stars. As well as all of the promotional costs and tournaments, we haven't even touched on Deposit bonuses or Freerolls, which come out of that margin as well as Support, Development, hosting, maintenance, operational costs like bandwidth or being able to call support on the phone, etc.
I hope that explains a little of the reasoning behind what we are trying to accomplish.
Regards,
Jeremy
I am sure, most people on this site understand fully that running a poker site is like any other business. You must also understand that playing poker, like running a poker site, is a business like any other. Most of the people here on this site play for a profit and not for fun.
In taking more rake, you have in effect cut my pay 12.5%. Now if WSEX cut your pay and then brought in a new employee and paid him 45% more than they pay you, I am sure you would be upset. So, it follows many here are. You have done so with yet another promise of the bonuses bringing in more players. OK, so bring them in, sit them down and get them playing and stop promising that one day this will happen.
With your vast experience at running poker rooms, you should know that grinders are a huge part of the equation, even more so when trying to build a site. So, cut back as much as you need to make a profit, but understand others who play there need a profit as well, and will not play there if they do not make one. Any cut makes fewer players profitable. It is that simple.
The only way to change this is to bring in new players, with better table selection and more recreational players. You have cut the rake, now bring in the traffic. We understand your plight, please understand ours. We all need a profit, which means we need new money in the site. My guess and it is just a guess, is to make up for the 12.5% cut in rack back, you need to double the traffic. Can you do this? If so great, if not, well I am just like WSEX, I need to make enough profit for my investment of time.