Join Date: Dec 2014
Posts: 13,256
If it's a tourney and you sell action at face value (no markup), then whatever percentage of the buy-in you sell is the same percentage of the gross payout you promise to pay.
e.g. If you sell 50% of your action in a tourney with a $100 buyin...
If you cash for $200, you have to give $100 to your staker (and you both profit $50).
If you (min)cash for $100, you give $50 to your staker (and you both break even).
If you fail to cash, both you and the staker get nothing (you each lost a $50 investment).
To sell at markup (e.g. someone agree to stakes 50% of the buyin, but only gets 49% of the winnings), you usually need to establish that you have a clear edge on the field, because otherwise the staker is making a -EV investment. He has to be pretty gullible to pay for your travel expenses, because he doesn't earn anything from your journey.