General Betting
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Commission rate between 4% - 7.5% ??????
Commission rate between 4% - 7.5% ??????
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Replies: 81
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lanza
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5% is very hard to overcome. 7.5% is too far for all but a handful punters. So often with approaches I get 2-3% in my favour but can't get over the hump to profit. Not sure who they expect to want to join. How would word of mouth ever happen when the hurdle gets that high? Normal bookies can hide their overround but with betfair you see very clearly what is killing your profits - so 5% - 7.5% is not an issue of emotional concern - it is a black and white profit killer.
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anything more than 5% and they can go and do one.
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So where is the commission rate going to be 4% ?
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From next week commission for Serbia will be 7% , they increase commission without giving any explanation, very bad business.
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Dear ....
We are writing to let you know that the base commission rate for markets in Croatia is to be increased to 7% from 07/08/2013. |
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mxrmaster and bobo will you carry on betting with betfair, go elsewhere or stop betting completely?
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Well, not much of a choice really. In Croatia all bookies take 5% of your gross turnover so 7% of your winnings still beats that by far. I will continue to use both Betfair and locals as before.
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i see big shift to smarkets and daq
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Probably I will use bf until daq become stronger with their markets liquidity, and if they keep 3 % commission that is much better than 7 %.
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Matching up a backer and a layer on an exchange, and having no cost of employing a trading team to set prices, should not be a service worthy of a massive 7.5% commission.
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You are right, it is not worthy of 7.5%, neither is it worthy of 5%
If their intention is to remove the exchange option altogether in order to focus purely on fixed-odds betting at their embarrassing overounds, then they are doing a pretty good job of it. If their intention is to keep the status quo of the exchange clients whilst maximizing profit for themselves, they are in for a very nasty awakening. If you fancy a giggle, check out their fixed odds prices for Tennis compared to Pinnys. It is laughable. |
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The whole bookmaking industry outside of Betfair currently benefits heavily from the tissue prices generated by Betfair customers (not Betfair itself). Betfair now want to "benefit" in the same way, by offering poor value, and hiding the exchange. Existing exchange customers face up to 62.5% Premium Charge Tax, plus having their prices copied and frontrun by Betfair itself. The real Premium Tax is getting higher and higher than 62.5%, as bets that would have been matched had customers been sent to the exchange are now frontrun and picked off by Betfair itself, using their own prices. How long can this go on for? Who knows. But Betfair look more and more like the Myspace or Bebo of the betting world, and not the FaceBook of it.
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It's a disgrace.I am 90% out of this company and doing fine elsewhere where I pay between 1% and 3% comission.Looks like liquidiy is
picking up fast at these places too.I give betfair 5 years max. |
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I would have thought this discriminatory pricing by betfair would be illegal.
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YOMOMMA is spot on it is discriminating.The premium charge is exactly the same it is discriminating against winners when the reality is every customer should be on the same level no matter what country they are in or whether they win or lose.
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PC won't be allowed in Italy when the ring fenced exchange is launched there.
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TheInvestor2, is there a ring fenced Betfair exchange opening in Italy? Or a ring-fenced other company/government exchange?
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Such a shame they have to be so greedy. Ruins the concept of fair exchange betting.
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Betfair will launch there ballabrigs.
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Where did you hear about the premium charge on italian exchange? I know they have to pay 20% of gross profits from providing the exchange but havent read anything about restrictions on pricing
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they = Betfair to Italain goverment
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Remember the bookies charge 0%.
If you put a tenner on at 7/1 you get £80 back.It's very simple. On here who knows you could get £40 back if you are a winning punter. |
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pmbets,
Just a 'slight' misrepresentation of the premium charge. It's effectively a tax on long-term net profit. If you don't make money in the long term, you will never pay it. The bookies, on the other hand, won't let you win long-term in the first place! |
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The premium charge is a subsidy on long-term net profit.
It pulls up the drawbridge by making it harder for up and coming future shrewdies to build up the necessary capital to compete with the existing winners,.... ;) |
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It pulls up the drawbridge by making it harder for up and coming future shrewdies to build up the necessary capital to compete with the existing winners,.... ;)
Why? They have a 250k buffer before they have to start paying. |
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They have a 250k buffer before they have to start paying.
before paying between 40% - 60% yes but you may be paying 20% within a few weeks if you are successful |
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Just playing devil's advocate Contrarian 2. Suspect that the odds of the 250k buffer still being there in 5 years time,... 1.25 no 5.0 yes. A smaller buffer will remain so people don't instantly pay PC on new accounts, maybe 50k.
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Unless you're hoovering, commission generated is likely to be > 10% of gross profit, in which case the bump up to 20% is not that onerous - certainly not enough to put off a newcomer building up a capital base if they have discovered an edge.
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ballabriggs,
Sadly I think you're probably right. What would be more tragic, of course, would be a hike in the 40-60% rates. |
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Instead of building a completely new (/separate) Italian Betfair, why not just do the sums on the amount of activity backing and laying from Italian customers, and allocate profits in percentage terms to Italy's relative contribution to the overall pot? Having a completely separate exchange could leave it looking like the purple site liquidity-wise.
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Contrarian2, logically they will want to keep the exchange on just above life support, whilst running a 365/PP style bad value high margin bookmakers in its place. Betfair probably don't even want the exchange itself, they'd happily give it to someone else, in return for a market share of the pie from the dimwits, and the ability to use the exchange as tissue.
The real PC people are now paying is much higher than 60%, many bets that would have been matched against PC payers lays/backs are now unmatched, gobbled up by the sportsbook. |
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The real PC people are now paying is much higher than 60%, many bets that would have been matched against PC payers lays/backs are now unmatched, gobbled up by the sportsbook.
Personally I don't feel this is the case. I think it has filled a gap in early/low liquidity markets but not at the expense of the exchange. Talks with my account manager suggest the exchange is very important to them. The abolition of the transaction charge confirms they want us to bet more through the exchange, even though this will likely compete with their sports book. It is still their core product. |
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"my account manager" LOL - towing the party line is their job mate
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"Such a shame they have to be so greedy. Ruins the concept of fair exchange betting."
Agree, a big change in the ethos of betfair, and if they do put it up, it would surely be another own goal and play right into the hands of B D, a lot of players would most likely just go over to the other site. |
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Got this e-mail yesterday...
Dear nnnn, We are writing to let you know that the base commission rate for markets in Brazil is to be increased to 7% from 07/08/2013. |
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One of the problems with **** is that they are not accepting customers from Serbia, Slovenia, and some other countries.
I can understand when Betfair wants to earn more money. But I can`t understand why **** doesn`t want new customers. Can someone answer this????????? |
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the ***** in above post are for second largest exchange BD.
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I'm always amazed how glowingly people speak of BD. I gave it a good go at the end of last season. The commission rate was great, UK football markets were good but for any other top league couldn't get near the price on here even factoring in commission.
You have to work so hard to get a bet matched if you don't want what's on screen but I guess this is what happens when you charge less for people making prices. Bookies - I reckon a solid portfolio of accounts and you can get better. That said, I find them reluctant to take my bets and I'm not even a PC payer. You have to be prepared to cocnentrate much more. |
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it's all bullsh it unless you use multiple id's. i'm going to move on soon and do something else.
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