Monday Sales Call: Competition in the Rakeback Industry

Last week I had the pleasure to be a guest on Affiliate Life Radio. On the show we discussed the current rakeback market and how the industry has changed through self-regulation. PAS , RaketheRake, and a few other major players in the rakeback industry played a major role in the implementation of rakeback “caps”, thus changing the environment of the industry.Rakeback caps were extremely important for the future of the industry. At the time, rakeback affiliates mainly competed on percentages and the competition was cut-throat. The industry turned into a bidding war among affiliates and the players were worried about whom they could trust. If caps were not created, rakeback affiliates would have been operating at such a low margin that they never could have sustained as a profitable business. As a result, rakeback would have eventually become extinct.Now that price points have been set on a level playing field, rakeback affiliates are forced to compete through promotions, coaching services, customer support, and referral programs. Rake races are used to market to the serious poker player. Freerolls are an added bonus to a site’s promotion program which targets the beginning/micro stakes player. Freerolls are often over looked by rakeback affiliates because they do not appeal to the high raking grinder. However, freerolls can pad a new player’s bankroll and he or she could one day become a high earning player for an affiliate.Poor player support is a deal breaker for many of the rakeback players I know. Players want their payments on time and accurate. Customer support is really another form of sales. Furthermore, as a result of rakeback caps, customer support is really the service/product you are selling as a rakeback affiliate. There are only a handful of reputable affiliates who provide the customer support needed to obtain the trust of a potential player.Rakeback caps, while limiting a player’s return on rake, essentially saved our industry. Caps forced affiliates to provide top notch support and promotions to their players. We will see this trend increase over the years to come. PAS is currently working on new player promotions and would love to hear your suggestions. Feel free to post your suggestions here or via email: publishers (at) pokeraffiliatesolutions dot com.Tony