Online Rakeback Why Poker Rooms Love Rakeback
The initial thought for many people regarding online rakeback is that it helps the players and hurts the poker room.
That thinking is only half true. Online poker Rakeback definitely helps the players but surprising to some rakeback helps the poker room. Let me explain.
Rakeback is actually payed by affilaites. Affiliates get a commission on the rake you pay to the poker room. The affiliate is paid this commission because he sent you to that poker room, likely with a link and/or a sign-up code. The affilaite gets paid regardless if you get rakeback or not. Rakeback is an optional practice done by some affilaites. The affiliate is actually paying you your rakeback out of the commission the affiliate gets from the poker room.
Why do affiliates offer rakeback. Simple question. Affiliates are competing for your click. Affiliates know that you have a choice in who refers you to the poker room, so they want to give you incentives to choose them. One of those incentives is offering rakeback. Poker rooms cap the maximum amount of rakeback an affiliate can pay to the player so most affiliates offer the same rakeback deals. Some rakeback affiliates offer other promotions like rake chases and rake rolls. Affiliates make a smaller percentage net commission offering rakeback, but because the player is earning rakeback the player is more likely to continue playing at that poker room for a much longer period of time.
Poker Rooms Love Rakeback Because:
- The Player Plays Longer
- The Player Has More Money in Account
- Longer Playing Players Fill Up More Tables
- Affiliates Advertise More
- Money Comes Out of Affiliate Commission
- The Player Has a Better Gaming Experience
- Creates More Freeroll Tournaments Offered by Affiliates
- Rake Races and Rake Chases Makes Contestants Play More
- Rakeback Players Earn Commission Referring Their Friends
If a player is playing longer at a poker room then the player is making the poker room more money. Though that is only the one of the many reasons poker rooms love rakeback. The bottom line is that poker rakeback is great for the bottom line of any poker room that offers rakeback as it accomplishes both increasing revenue and increasing customer satisfaction. Satisfied customers can refer their friends meaning many new online poker room customers.