Maximising Your Bankroll With Poker Rakeback And Referrals

Like most players, when I first started playing online poker several years ago I knew nothing about rakeback. I saw an ad for a poker room, clicked the link, liked what I saw and signed up. Several months later I stumble across an article on rakeback and found out that I was missing out on hundreds of dollars each month. As you can imagine, I wasn't too happy.

So why didn't my poker room tell me about rakeback? The simple reason is profit. Paying rakeback reduces the profit margin of the house. With that being the case, you could ask why they bother offering rakeback at all, especially if they aren't going to be upfront about it? It is because rakeback is a marketing tool. You see, poker rooms obtain members from two main sources. The first is direct referrals. These members find your website by person to person, through merchandising material or via marketing campaigns created by the poker room itself. This is how the majority of people first find a poker site, the unfortunate masses who ultimately learn about rakeback the hard way after many months of playing.

Alternatively, members can be generated by affiliates of the poker room. Affiliates are people your website has enlisted to send internet traffic to them. Affiliates for his or her part, can be found in two flavours. There are affiliates who simply send traffic to the site without offering any out-of-pocket incentives to get visitors to join. They simply promote whatever the room itself may possibly offer. Then there are affiliates who provide prospective members with extra benefits for signing up through their account. These benefits can include free tournaments, merchandise, free bankrolls and/or rakeback. All of these incentive are paid for directly by the affiliate. Poker rooms in turn compensate affiliates by paying them a commission for each new player they send. This commission is either a straight money value payment for the each new member joining the site or an ongoing percentage of the rake generated by the player. This of course reduces the profit percentage of the room and as such they would greatly prefer it if every player came straight to their site.

So basically, rakeback is a marketing tool that the more generous affiliates employ to generate players for the poker room. These affiliates make less as paying rakeback reduces their profit significantly, the same way that paying an affiliate reduces the poker room's profit. But it does make for happy poker players and the smarter affiliates know that individuals who receive rakeback generally play more often and so are more profitable, which in turn benefits the affiliate in the long run.

But even among rakeback providers, there are things you need to find to ensure you are receiving the best possible deal. Yes, most affiliates offer the maximum level of rakeback allowed by the poker room but you will find other areas that will further raise your bankroll, one of these being referrals.

For many who don't know, a referral is a friend or associate who signs up to a poker room under your account. As such, you are basically performing the same service as the affiliate does for the poker room - you are finding new players and directing them to the site. Except, in this case, you are sending them to the affiliates site rather than directly to the poker room.

If used wisely, referrals can generate more money for you than rakeback. A lot more money. Imagine you understand just five people who are playing online poker without rakeback and you get them to subscribe under your rakeback account. On average, every one of these friends play poker as much as you do. Or, instead, you could know just one or two players who play a greater volume of games than you or at an increased limit. Now put a 4% commission, paid to you, against each of those players. That's 4% of the rake they generate in your pocket, for life. Then add a further. 5% commission, paid for you, for every player that those second tier players refer. Then a further. 2% of the rake for players that the next tier players refer. As you can see, there is the potential for a lot of extra cash to be made using this system.

Most affiliates offer referral payments in the range of 2-4% in the top tier,. 5% in the second tier and. 2% for the next tier of referrals. Their are however rakeback sites that offer a lot more than these commission rates.

It's also advisable to be wary of sites that offer a flat payment for each player referred - eg. send us a pal, get $125. NEVER use a rakeback provider who is offering you flat payment referrals. It may seem attractive to obtain a lump sum all at once, however in the long run you will lose out on significant commissions - perhaps thousands of dollars.

You should also note that some poker affiliates use underhanded tactics or tricky wording to seem like they are providing you with a great deal - like proclaiming to offer you 10% of your friend's "rakeback" instead of his actual "rake". Remember that a player's rakeback will simply be around 27-40% of his actual rake, so these sites are only offering you the same 2-4% as their competition.

Another trick rakeback providers use is their offer of "exclusive" monthly promotions. 99% of times this is false advertising - the promotion is usually exclusive to the poker room, NOT the rakeback provider.

For example , a rakeback site might offer $600, 000 in promotions per month. Out of this total, they run $500 worth of exclusive freerolls themselves. The other $599, 500 consists of the rake races, rake chases and freerolls that the poker rooms run themselves - you'd be enrolled in these regardless of whether you signed up through the rakeback provider.

Alternatively, a smaller rakeback provider could offer only $200, 000 in promotions because they provide less poker rooms, however they could have several thousand dollars worth truly exclusive promotions on offer. If you should be interested in joining a site that gives more value, the more true exclusive promotions available, the better.

So it is definitely a good idea to shop around when looking for your rakeback provider. Don't just jump onto the first sites you find in a search result. Yes, these are generally the more expensive sites nevertheless they only rely on their search engine position for new members - i. e. they often don't offer much added value as they don't need to compete as much.

I hope this article helps in your search for a better deal and good luck at the tables.

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