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In your example he only pays 22%?
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Does the 27% not refer to generated commission? Looking at my PC statement, I can't see anywhere that shows me how much commission I have paid, only generated commission.
I like your calculations, but surely he isn't paying 27%, but generating it? |
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As the moment, for every £1 I make in profit, I generate 27p in commission for Befair. Quoting the man himself....
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some very very clever people on here basically stealing money off clueless punters
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BJT, if that's the case the number will be different.
I think he is saying he pays 27 % of his winnings in commission though. I suppose he will be on here later telling us what it is... |
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catfloppo, in my numbers commission generated is 22 %. He will however have paid 27 %.
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some very very clever people on here making money legitimately from an innovative system that provides a better value service to clueless punters
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I knew it, Eddie [;)]
So, in your example his lifetime commission rate would be 22% |
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Well, I think his use of the word generated is a pretty strong argument suggesting that. I wouldn't even have a clue how much I have paid in commission.
Now in regards to the calculation for generated commission, would you care to explain to me how and why this is worked out the way it is? In particular, /2. Should the formula not be the actual ratio of your wins losses? I know this works out in BFs favour as 2 obviously, but surely it is a false formula that just doesn't add up? I guess what I am asking, is if you have any opinion on if across every account, the generated commission is equal to the commission that BF has received, as it 100% should.? |
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catfloppo, his lifetime commission generated would be 22 %.
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BJT, when someone says they have generated 27 % of their profits in commission to Betfair, it would normally mean that is what they have paid.
Due to all these different numbers regarding PC though, it's aliitle confusing. He may talk about commission generated PC-wise, but I have a feeling that he actually has paid these 27 %. I'm sure he'll be on here telling us soon.. |
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I'm with you now.
I wonder if the good doctor will tell us his actuals? Not just his commission generated but his pc starting rate commission discount etc. Still seems odd that someone would pull the plug on a system because of something that might happen in the future. |
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catfloppo
Date Joined: 16 Nov 06 Add contact | Send message When: 10 Jul 11 08:03 Joined: Date Joined: 16 Nov 06 | Topic/replies: 936 | Blogger: catfloppo's blog Good post Eddie, I hate challenging your calculations because I usually end up being proved wrong but.... ...to demonstrate that BJT is wrong that Dr J will pay 13% pc when his average commission is 27% surely you have to use an example where his commission generated is 27%? I would also point out though that at 44.8% instead of 40% BJT's point still applies. Of course, we don't know his true figures but it would seem odd for him to stop something that is still profitable unless the time/money ratio is no longer attractive enough. I wonder if Dr J would consider posting his actual figures so we could do a proper case study? We could then also take into account the starting buffer which, judging by his betting style, could be significant. Rate reply: 0 (0 Ratings) The report button allows you to report a post, comment, reply or another user's behaviour. For somoeone like Dr J. who has a job, fairness will also be more of a factor. Some people like him might move simply because they don't feel the equity split is fair. I remember an interesting psychological experiment where one guy was given $100, and he could split it with another guy in any proportion he wanted. The only thing is that if the other guy rejects, neither of them get them money. If you do a 50/50 split of course the other guy is extremely likely to accept. There comes a point though .. 60/40, 70/30, 80/20... where almost no-one will accept. They will literally reject free money in order to punish the other guy for being so greedy. |
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What has also got to be considered is this "44.875" gross profit figure could be a lot worse in reality as Eddie's post is calculated over a YEAR and not on the WEEKLY basis that is currently used for calculation by BF!
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My post was with reference to eddie's post earlier (I didn't realise there was an extra page to this thread :S )
Doesn't work like that BJT. Let's say he keep on winning and paying on average 27 % in commission and let's also say he is on 4 % commission. If he's gross profit in a year is 50 k, he has paid 13.5 k in commission , making his profit 36.5 k. Here you assume he will "just" have to pay another 13 % of that net profit, but that is very wrong. On his way to winning these 36.5 k he has had a total of 337.5 k in winnings and 287.5 k in losses. These losses will have earned him 8.625 in implied commission. His commission generated will therefore be 11.062,5 or 22.125 % of his gross profit. Betfair will want another 17,875 % from him, not from his net profit, but from his gross profit of 50 k. That will be £ 8.937,5 to pay in Premium Charge. You said he would have to pay 13 % of his net profit in Premium Charge, but the fact is that Betfair will tax him 24.49 % on his net profit. He will in the end have paid a total of £ 22.437,5 in commission and PC. That is 44,875 % of his gross profit, not the 40 % Betfair want us to believe. |
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argh (not having a good day)... what I meant to write was this:
What has also got to be considered is this "44.875%" OF gross profit figure could be a lot worse in reality as Eddie's post is calculated over a YEAR and not on the WEEKLY basis that is currently used for calculation by BF! |