FTP Put Commission Down to 3%
Around 2 weeks ago Full Tilt Poker decreased affiliate commission to 3% whereas before affiliates could enjoy up to 8% (I believe). This doesn’t effect me at all but, its definatley worth writing about so here goes…
I never really recruited players for FTP because even post 3% commission their effective commission was the worst out there along with pokerstars – if you were lucky enough to get revenue share.
What I mean by effective commission is that the FTP new player market was highly competitive and saturated with races, coaching and software being offerred left, right and centre – See the recent CardRunners promotion. After the player rakes their intitial $500 CardRunners will be lucky to have profited whatsoever.
However, ipoker and ongame are arguably as equally competitive with the difference being they’re networks. As far as I know there are no players who upon signing up to FTP are raking a decent amount – which pretty much means its an investment into the players raking a decent amount in the future. Whereas on iPoker or OnGame I know when someone says to me they rake $5k there is a fair chance they’ll rake something and if I establish a good relationship with them and things are good there’s no reason I can’t make a few K from them in a lifetime.
Its not only the investment in the player’s learning curve, future disposable income and everything else that gives them the ability to generate rake but, an investment in FTP still being around as a site and online poker as an industry. For a small unestablished affiliate running races and promotions resulting in a very fine edge combined with the delay in time before real returns are realised always made FTP an unappealing option for me.
I’ve read around that this drop to 3% was long overdue for affiliates and is going to be mirrored elsewhere. I completley disagree with this statement – as long as poker networks exist so will affilaites on decent commissions. The unarguably easiest way for skins to access fast, reliable rake is to steal players from fellow skins on the network. This cannot be done by anyone other than affiliates.
Moreover, FTP and Stars enjoy great brand recognition and affiliates definatley piggy backed off this. I guess the test would be to see how many of these players would be playing at FTP if they had the same deal without an affiliate. I’m guessing close to 100%. Whereas on iPoker or OnGame the players could be at one of 30 places.
I guess the problem for affiliates on stand alone sites is if a player wants to play that site its not becuase of the affiliate its becuase of the site. But, that’s why I’m thankful about not being involved in FTP. I can’t imagine being RakeTheRake and previously earning $80k a month of the $1million rake being generated by its players and having that docked to $30k. Its a lesson in how vulnerable affilaites can be and probably offsets the great short term earnings.
Anyway, I don’t see anything changing on the networks becuase the minute it does a ton of affiliates and consequently players will move and that will be that.
