Newbie Question

[ASPoker8]

I know almost nothing about affiliates and rakeback.

However, I have always wondered...

Say Mark Smith wants rakeback. However, he wants ALL of his rakeback, and doesn't want to sign up under someone he doesn't know, and just get a percentage of what the affiliate gets.

So Mark creates an affiliate account, and registers it under his fathers information. His father never plays, and generally doesn't care that Mark does this.

So now Mark has set up an affiliate account with the information of his father, John Smith.

Mark creates an real money account and signs up under John Smith's plan.

Mark earns $500 in rake the first month. So John Smith's affiliate account is credited with $100.

Mark transfers this $100 to one of his bank accounts, then transfers it to his main bank account, then back into his real money account.


What do sites do to prevent this?

Now please don't flame, I know almost nothing about affiliating/rakeback.

[SoCalRugger]

I'm guessing you'd get much more money signing up under an affiliate with a large customer base that can negotiate higher rates, than you would by creating your own affiliate account and just having one sign up. I'm not an affiliate, but I'm pretty sure that's how it works.

[ASPoker8]

I don't understand.

Don't affiliates get 20-25% of your rake, then give you like 25% of that total?

[teddyFBI]

This works, in theory, but seems like a real pain in the ass, esp if the father doesn't want any part of this. Plus, if you get caught, they close your affiliate acct, and maybe your playing acct. And, unless im mistaken, some sites close your affiliate account unless ur bringing in at least 1 new real money player every few months.
It's just kinda dumb, when u can go with a reputable affil and get a few more percentage points b/c they have better deals than beginner affils can negotiate.

And no, ur example is kinda screwy...affils get around 25% of their players' MGR, but bigger affils can get 30 to 35% b/c they have higher negotiated deals. E.g. player generates $1,000 in rake, affil on a 30% MGR plan gets $300, and pays $280 to the player (assuming a 28% RB plan), keeping $20 for himself.
it's a very low-margin biz.

[ASPoker8]

Ohhhh. I always thought player brings in $1000, affiliate gets 30% = $300. Players gets 28% of $300..

THANKS!