General Betting
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Been trying to work out fully how the Premium charge is calculated & think I understand how the commission generated is calculated .
The thing I'm struggling with is the PC is taken off the gross profit, right? & then commission generated % is taken off. ie 10,000 gp to 20% gc means (at 60%) you pay 40% of 10,000 =4000 . Now say he paid actual commission of 2500 so his actual profit on the week is 7500. this means his take home for the week is 3500?
thats a 65% deduction on net profit, even though he churned 20% gc ?
have I miscalculated somehow? if he made 10,000 gp to 5% gc he'd get deducted 55%- 5500 leaving 4500 profit less maybe 500 in actual commission means 4000 profit on the week .
Assuming 1 week is churning (0% profit after commission) & the 2nd without, what is the incentive to churn?
The thing I'm struggling with is the PC is taken off the gross profit, right? & then commission generated % is taken off. ie 10,000 gp to 20% gc means (at 60%) you pay 40% of 10,000 =4000 . Now say he paid actual commission of 2500 so his actual profit on the week is 7500. this means his take home for the week is 3500?
thats a 65% deduction on net profit, even though he churned 20% gc ?
have I miscalculated somehow? if he made 10,000 gp to 5% gc he'd get deducted 55%- 5500 leaving 4500 profit less maybe 500 in actual commission means 4000 profit on the week .
Assuming 1 week is churning (0% profit after commission) & the 2nd without, what is the incentive to churn?
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if you are subject to the premium charge, you must pay a minimum defined percentage of your gross profit in charges.
the premium charge ensures that this percentage is met, should your commission generated fall below the defined percentage.
so if you pay PC at 50%
week 1: Commission generated 15% gross profit, PC 35% GP
week 2: Commission generated 25% gross profit,PC 25% GP
the premium charge ensures that this percentage is met, should your commission generated fall below the defined percentage.
so if you pay PC at 50%
week 1: Commission generated 15% gross profit, PC 35% GP
week 2: Commission generated 25% gross profit,PC 25% GP
He wouldn't have paid as much as 2.550 in commission if his GP was 10 k and CG was 20 %.
The PC is as yoiu said calculated on GP, so almost everyone will pay more than the rate they are on.
The PC is as yoiu said calculated on GP, so almost everyone will pay more than the rate they are on.
Yes but if your commission generated is higher your actual commission will be higher meaning a bigger difference between Gross profit & net profit?
Isn't it worked out to gross profit so they can charge you more without you knowing (because nobody can be bothered to calculate the premium charge code)
Isn't it worked out to gross profit so they can charge you more without you knowing (because nobody can be bothered to calculate the premium charge code)
Yes but if your commission generated is higher your actual commission will be higher meaning a bigger difference between Gross profit & net profit?
There will be a higher difference in the numbers but not in the %
Calculating what you are supposed to pay is no problem as long as you know how much you have had in winnings and losses during the week.
There will be a higher difference in the numbers but not in the %
Calculating what you are supposed to pay is no problem as long as you know how much you have had in winnings and losses during the week.
Do you get implied commission if you are dutching eg. if you back three horses in a race for £100 each,one wins at 2/1 therefore (apart from usual deduction) you are level on the race,do you get credit for the £200 worth of losers?
No, implied commission is only credited for net losses on a market.
Clacker,
If you baked 3 horses for £100 and had a 2/1 winner you would not have any deductions so dont understand your point.
If you backed the winner on one account and the 2 losers on another you would pay £200 x say 5% = £10 in commission and pay no commission on losers so you woul lose a tenner on the bet.
You would generate £200 x 3% on your losers =£6 and £10 on your winner. Total generated = £16/2 = £8 but you would have paid Betfair a tenner anyway !!
If you baked 3 horses for £100 and had a 2/1 winner you would not have any deductions so dont understand your point.
If you backed the winner on one account and the 2 losers on another you would pay £200 x say 5% = £10 in commission and pay no commission on losers so you woul lose a tenner on the bet.
You would generate £200 x 3% on your losers =£6 and £10 on your winner. Total generated = £16/2 = £8 but you would have paid Betfair a tenner anyway !!
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