purple changes commission structure

We are determined to restructure the way we charge to motivate users to align their activities with the best interests of our business.

Any links?

Link please?

got it in a email


The standard commission rate is 5 per cent, but you will be able to bring that down to as low as 1 per cent depending on your activity Take/Make % over a rolling 7 weeks period.


How it Works

1.      At the end of each week (0400 Hrs Monday) your Take/Make % over the previous seven weeks will be calculated and your commission rate will be updated on the scale shown below.

2.      New customers will automatically enter at the 3% rate.

3.      Users with no activity over a 7 week period will be deemed to be 100% Take for their next active week.



(MatchedStake/TotalForsideStake) = Backerstake when user is the backer or Layer of a selection.

(TakeMatchedStake/TotalForsidetakestake) = This is where a user takes an available bet from the site, rather than placing an offer onto the site.

N.B. “Rate” in the example below in any week i.e. (3.5% in Week 1**) is the rate that will be effective for all orders placed during the following week. In the example below therefore, in week 1 the customer would pay 3.00% and in week 2 would pay 3.5%


                        Example 1.0     Make Vol        Take Vol        Take %  Rate   
Scalable Commission Table               Week -7 2500    2500    50%     2.00% 
Take%   Comm Rate               Week -6 2500    2500    50%     2.00% 
95-100  5%              Week -5 2500    2500    50%     2.00% 
90-94   4.50%           Week -4 2500    2500    50%     2.00% 
85-89   4%              Week -3 2500    2500    50%     2.00% 
75-84   3.50%           Week -2 0       5000    57%     2.50% 
65-74   3%              Week -1 0       5000    64%     2.50% 
55-64   2.50%           Week 0  0       5000    71%     3.00% 
45-54   2%              Week 1**        0       5000    79%     3.50% 
35-44   1.75%           Week 2  0       5000    86%     4.00% 
25-34   1.50%           Week 3  0       5000    93%     4.50% 
15-24   1.25%           Week 4  1000    4000    97%     5.00% 
0-14    1%              Week 5  2500    2500    90%     4.50% 
                        Week 6  5000    0       76%     3.50% 
                        Week 7  5000    0       61%     2.50% 
Additional information

Hmmm.  That sounds familiar.

That is quite interesting actually - differentiating between take bets and give bets and producing a commission dependent on each.

Thanks LM.

I can't agree with this business of an 'offer' being more important than the bet that takes it. If a staring contest develops between someone who wants to lay for 1K @ 2.0 and someone who wants to back for 1K @ 2.02 why is the person who decides to accept a worse price seen as the taker?

presumably because takers typically degrade the overround, whereas makers typically improve it.

Doesn't the purple site have its own forum on which to discuss and debate its own commission structure.?
Do people debate the Betfair PC charge at lenghth on the purple site.?
Horses for courses boys.

do the purple have an equivalent of betfair SP?

forum name is "general betting", froggy. how is this not relevant to that?

presumably because takers typically degrade the overround, whereas makers typically improve it.

The takers momentarily close the spread and are penalised for doing so.

The takers momentarily close the spread and are penalised for doing so.

  Couldn't you just as well say that the maker is given a rebate because he offers a price that someone wants ?

What of the staring contest Eddie? Presumably the exchange wants a bet to be struck. Why is the person who accomodates them penalised.

the takers make the overround less attractive to the next person who comes along, whereas the makers make it more attractive.

if you're in the business of competing with other bookies/exchanges, then it makes sense to incentivise market-makers who increase the competitiveness of your offer.

Because the one who end up being the maker has probably put up the correct price or a price that is closer to being the correct price ?

Too many people think in terms of quiet markets when rewarding the offer maker is mentioned. Why does an exchange want quiet markets? Exchanges should be attempting to guide their customers towards a settled price instead of having interfaces that encourage £2 leap frog and staring contests.

Apart from the "standoff" issue, if I have understood this correctly, I think this could be a fantastic idea from the purple site regarding liquidity.  The main reason I stay away from the purple place is because I don't want to pay 5% commission when I could be paying much less here from my previous loyalty.  With this new commission scheme, I can place my bets at both place (awaiting at purple), I only need one bet to be matched per 7 weeks to get me to 1%.  If as would be expected for the average gambler you take 50% of bets and await 50% to be matched your average commission rate there would be around 2-2.5% commission (a huge discount).  An average which attracts the smaller players too perhaps?  Liquidity is the other reason I stay away from purple and I'm sure is the main reason the majority of people stay away.  If the big positional players now have no reason to stay away (commission wise) liquidity should surely improve?  This seems too good to be true though so I'm suspecting I have misunderstood something?

A good step in the right direction, excellent news for those who believe in proper competition rather than a virtual monopoly. Now, if only they can get the issue of having sufficient markets up, and at the same time as they are here, things could get VERY interesting!

people have been waiting for purple to get their act together for years.

it will never happen; they've proved time and again that they're not up to it.

They have to be careful not to increase the number of markets too quickly. If you spread the liquidity too much then every market becomes unattractive.

Banks, the problem is that they have steadfastly refused to include ones where it is 100% certain that there would be excellent liquidity. Top 3 in Sports Personality being the most obvious. And only putting up markets just a day or so before the event is a surefire way to ensure poor liquidity!

Viva, I know what you mean, but this latest move is very encouraging, you can't dispute that.

Indeed, the management, lets hope they are finally (!) moving in the right direction.

The reason purple have failed in the past (imo) is because they have failed to gain decent liquidity.  Bit of a chicken and an egg situation, you need liquidity to attract new and existing players, with more players comes more liquidity etc... at least with this new commission scheme there is potential for much more liquidity from bigger players and smaller players who understand the impact a smaller commission rate can have on success/failure...whether the purple place can attract sufficient new custom (not seasoned players) is the main question?

LMansini do you know when this new scheme goes live?

At purple is there an offset commission like here for traders?  i.e., you are only charged commission on the profit from several backs and lays of the same selection?

2.      New customers will automatically enter at the 3% rate.

3.      Users with no activity over a 7 week period will be deemed to be 100% Take for their next active week.

^
Enter that text as a search term in google.co.uk and the first result combined oral contraceptive pill WTF

Still no information form **** though. Is this real?????

Can anyone else confirm. Perhaps the email was a hoax.

I was just thinking that too, whether this was a hoax, as the help pages on purple site still showed "old" (?) commission structure and also an advert for 2.5% commission til end March for new customers (but this could still apply for "new" structure)? If a hoax, you are pretty convincing LMansini lol but would have wasted a load of my time argh!

someone on twitter reports getting the same email yesterday:

lladini: @**** me envía hoy su nueva "estructura de comisiones". Te cobran distinto si "ofreces" la apuesta que si la "aceptas". No entiendo nada!

Its real but for API users....The commission structure changes in question effect only API customers.

People slate purple  far too much.Have always found them to be very helpful when dealing with them and at the time pc was introduced they did plenty and were open to all suggestions.New api's,lower commission rates,forum,more markets. Its the numpties on here that wouldn't walk.

I wonder whom windrider works for ?

the liquidity is not good enough there yet.

they need to have the high profile markets full of money, and not just on the matchday, there needs to be money up for people who want to place early bets

football im talking about

I want an EU owned exchange monopoly management so I must be b).

Re purple's customer services, it's easy enough to have good customer services when you've no customers.

No, it doesn't.

No it doesn't.
Thank God we all agree on something.
BF customer relations suck.

>VennOttery1981
>Its real but for API users....The commission structure changes in question effect only API customers.

This doesn't make sense to me, do you have a source for knowing this?  I would imagine it would be a can of worms to have 2 different commission schemes.  If for example someone who uses GeeksToy/Gruss equivalent for the purple would be on api commission, but when they placed a bet manually over web they would use a different commission, purple then having to differentiate between two, trying to answer commission questions from all the confused punters etc... doesn't make sense to me from a feasibility perspective?

I wonder whom windrider works for ?

I don't work for them but every single bet I can keep away from this place, I do and not just because of premium charges and bookmakers in this day and age are largely a joke so I find that the win markets on horseracing and football markets are fine and the value of that is something not to underestimate.

Anyway, what do you think they could do differently to change a monolopy situation? That is not an easy thing to do and I think they gave it a fair shot and are still providing a good service.

While on the subject of purple i'm thinking this , if serious gamblers were to migrate en masse what would the long term consequences be regarding dumping a lumps sum into their vaults ?

They're not a strong company financially and fairly new to most of us ,would we be safe for starters ? What is their security like ?

A  Q to anyone who has ever used the correct score- football on this site ,

has anyone ever managed to get matched IN PLAY? i swear the matched figures are seeded .

^^^^^Ribena *

He's got a few bob, but do others know how they would stand ?

" If serious gamblers/traders migrated en masse "  would the infrastructure stand up is probably more to the point.

in that case then management , why doesn't he offer the same incentives that BF offered ?

I signed up initially to get my £25 bonus as i'm sure most did , and when i stopped on here after 6 months for DIY purposes i received a call from BF offering me a further £25 bet to get started again .

more to the point ,with billions in his account why would be even be bothered ?

I got this email. Sounds good to me. Starts 1st March. They should have kept quiet till a few days before implementation so as to steal a march on their rivals!!

Management ,well it obviously worked .

Purple couldnt steal a march on a feckin tortoise 

Getafix....I use them for taking positions pre race so I emailed them, looks like come March I will start using the API to place bets, they told me it doesn't affect me currently, obviously because I place bets on the website.  I suggest to email them any questions and post your findings on here, got a feeling this has been leaked early.  I have no problems getting on there at the same prices here but it is harder early doors, saying that this place is a ghost town early also these days

It is expensive management, but you normally only have to pay it the once ....so a big gamble i guess ,without that gamble i doubt BF would have ever succeeded ,so i have to doff my cap there .

I remember Tesco's saying about how much each person was worth walking through their store for the first time

I think the best thing would be if purple just disappeared

that would create a vacuum for a new company to step in with more vision, creativity, ambition

at the moment they dominate second place without ever going to challenge bf... In fact bf must secretly love having them as their only competition

what about the wetabix site, how the hell are they still going? thats the question! I hope the purple do some good PR with this new structure but will they? remains to be seen

Management , before handing over the second 25 i reckon they did profile checks to see the type of gambler they  were dealing with ,only my guess.... i was quite a regular small player at that time  and then decided after losing my modest £200 bank that  i needed 3 months off  to sort my house out (except BF didn't realise that )

Still ,it worked out well in the end .

Coach, yes I did get matched on Correct Score on Purple in 32 out of 64 World Cup games. I made £550 on purple during the WC, using a bank 1/10th of my Betfair balance, and during the Champions League Final I made £50 using a bank 1/100th of my bf balance.

I only bother when there are a small number of very high quality games on, as I can then focus on both at the same time.

I could have made quite a lot more on the WC, but I was using a friend's cash, and had agreed a deal where we would split the profit, but I would absorb any losses, so I was taking far less risk than I would on Betfair as a 'losing month' would be unacceptable.

Investor, that's interesting  ...i will take a browse one night during a high profile match .

Anyway, what do you think they could do differently to change a monolopy situation? That is not an easy thing to do and I think they gave it a fair shot and are still providing a good service.

------------------

fair point re the effective monopoly, but they don't make it any easier for themselves. first thing they need to do is rebrand and advertise to reach out to your ordinary jo punter. compare the names:

"betfair: okay, you bet there, and it's fair. sounds worth a look"
"b€tdaq: okay, you bet there and... what the fvck's a dack? I thought that was a bit of sh!t hanging from a sheep's arse..? wait nothing's coming up. maybe it's spelt dak..? no. daq?! is that even english? actually, it rings a bell - it's something to do with the city isn't it? all sounds a bit complicated, I'll stick with what I know."

Have you never heard of the Battle of Dak ?  [;)]

They're jokers, i think we'd  just better leave it at that really .

They should have called it Jester Bet .

I'm jester betting exchange

one obvious thing that they do is self match like tonight in early markets to create a false impression of liquidity, was looking at tomorrows southwell card, nothing matched in any of them not long ago but then suddenly over 20k matched in each! [:x] not keen on this practice and so blatant to anyone who uses them

^^^ not self matching, it's because they calculate what is matched differently, eg, if someone lays £20 at 50s they deem it to be £1000 matched, whereas betfair just take it as 2 x £20. You could argue it either way as to which is correct tbh.

The Management
Date Joined: 27 Dec 00 Add contact | Send message When: 15 Jan 11 12:32 lol - it is the frittering away of all these £25's that p!ss me off.

Just think every dormant account (they have many many 1000's of them) getting offered a pony every 6 months at the expense of their loyal (and by loyal what I mean is active) account holders who are paying for it.




Where do you think the £25 ends up?

turtleshead, yes I know they calculate but they are self matching fact, one minutue zero matched in any market then all of a sudden 20k matched in each one, plus some of the prices matched just don't added up anyway.  only talking about overnight racing markets here

So how do you know it's not a genuine bet, out of interest?

The reason I mentioned about the different calculation is because it is very easy to understand how you can suddenly gets 20k matched, its probably just a few small bets at large odds!

its not just 1 or 2 and noticed some of the matched prices are pathetic! happen to be all bigger than currently available on here, like I said very little matched then suddenly 20k like I noticed in each southwell market last night, been doing this for a while now.  I like the purple just not this

The reason for this mail is to inform you that we have been studying the impact on our product and on our business of the activities of API users. We have noticed over the past year the increasing influence of such users who take offers made by other users while rarely making offers for other users to take. This has the impact of reducing the available liquidity for normal retail users.

Following this review, we have decided to change the way in which we charge commission to customers using the **** API.



From March 1st 2011 we will introduce a new commission structure that will operate for API users as follows:

**** will operate a scalable commission structure whereby the greater the proportions of offers you make that are taken by others, the lower your rate will be. Commission will continue to be charged on your market winnings from any single market.

The standard commission rate is 5 per cent, but you will be able to bring that down to as low as 1 per cent depending on your activity Take/Make % over a rolling 7 weeks period.



How it Works

1.    At the end of each week (0400 Hrs Monday) your Take/Make % over the previous seven weeks will be calculated and your commission rate will be updated on the scale shown below.

2.    New customers will automatically enter at the 3% rate.

3.    Users with no activity over a 7 week period will be deemed to be 100% Take for their next active week.

Additional information

·         Promotional commission offers are not available to API customers.

·         All customers who wish to use **** via an API must accept the new commission structure and the amended terms and conditions.

·         GBE will add details to the **** API program website in the near future on how you can calculate your Take/Make % using existing  API calls

·         GBE are also reviewing API call limits and profiles and a further update will follow in the near future


We recognise that the move to a scalable market winnings commission structure will impact on those users who predominantly ‘Take’ offers to trade, but this impact can be reduced by adjusting the trading methodology to increase the proportion of ‘Make’ offers. We are determined to restructure the way we charge to motivate users to align their activities with the best interests of our business.

Good move!

Looks like they're targeting the arb bots that are taking any out of line prices to me

but also incentivising bot based marketmakers.

the rationale to me appears to be to create greater liquidity (especially IP and in derivative markets) and tighter overrounds as a means of attracting more recreational punters, as well as higher level position takers and traders working through the site.

looks like a surprisingly astute play from a firm with a history of looking clueless to me.