View Single Post
  #168  
Old 11-17-2007, 01:23 AM
Beck Beck is offline
Senior Member
 
Join Date: Jul 2004
Location: Soon Thailand
Posts: 586
Default Re: What don\'t you get ? It does not take a genius.

One problem for the sites is, that if they change the rake (either up or down), if it does not have the desired effect it can be very costly for them.

If a site estimates they can increase the bottomline profit with 10% by lowering their rake 10% (numbers randomly chosen), they also need some sort of risk-compensation.
Because if they do not see a revenue increase, but instead a decrease, it will be difficult (and probably rather costly due to losing some players) to increase the rake back to what it was before.
So it's a risk-reward scenario, sort of.

Is the current rakestructure optimal for the sites? Don't know, but probably not, since it would be amazing if they right from the beginning settled on the most profitable rakestructure.
But to think that they haven't considered how to maximize their profits by changing rake is kinda naive IMO.
Reply With Quote