New PC charge now up to 60% from 18 July 2011

[spreadbetting]

Jimrobo meant it will not only affect big hitters I believe.

Andy is spot on, it kills the motive for getting started and trying. Why pay 60% tax when you can get a job which pays less and involves less risk. Can't work out what Betfair are doing. Have they lost their marbles?

The site hasn't been set up as some alternative employment centre for traders though. They've served their purpose for betfair by promoting the site, providing liquidity, keeping prices tight etc betfair have just effectively made them redundant without giving them a clock for loyal service.

It's possible they've cut their own throats and may lose some market makers or other big liquidity providers as whilst it was relatively hard for value punters/market makers to fall in the PC bracket at 20% it's now almost impossible to avoid it at 40% for long term winners

[superfrank]

Betfair up 6% today... http://www.bbc.co.uk/news/business/mark ... traday.stm

[spreadbetting]

Betfair up 6% today... http://www.bbc.co.uk/news/business/mark ... traday.stm

Only need to go up another 100% to get back to peak price from 6 months ago on launch day, now

[0918231]

Maybe we should gather here? http://www.facebook.com/pages/Betfair-P ... 2673473703

[mcfc1981]

why is a exchange punter winning 250k and a betfair poker player winning 250k treated different?
all of betfairs reasoning about why they need to tax the exchange player should be valid for the poker player or does the poker player avoid charges coz he would be of in an instants to another poker site.

[enzabella2009]

IF 500 traders invest 125K insted of paying 60% charges to betfair they (we) would have enough cash to develop e strong alternative to betfair and betdaq traders, punters and poker players. So what you guys waiting for? Something does not add up here.

[Finoh]

Here in the boondocks we don't worry about this charge. When you have 7 kids over 18 and stacks of grandchildren some of them even legitimate and their own teeth you just sign them up to BF one at a time when you near the amount of 250,000 or where you might have to pay the new charge.

You might even have to put in different address's or get a new ISP. They are separate BF customers. If it gets really bad you could always sign up the ex-wives.

Cheers

Ian

[freddy]

If there are any people that are still unsure of Betfairs Direction then


"We are developing an integrated Exchange and sportsbook product that will allow us to provide more in-play markets as well as giving customers guaranteed execution in less liquid markets. We believe this liquid Exchange and sportsbook combination will be unique to Betfair and will allow us to capture a greater share of wallet from existing customers as well as attracting new ones."

[Iron]

I wonder what that means in plain English...

'Will allow us to capture a greater share of wallet from existing customers' - I wonder if Betfair's competitors will pick up on the fact that Betfair have basically admitted that they want to extract more money from their existing customers?

Jeff

If there are any people that are still unsure of Betfairs Direction then


"We are developing an integrated Exchange and sportsbook product that will allow us to provide more in-play markets as well as giving customers guaranteed execution in less liquid markets. We believe this liquid Exchange and sportsbook combination will be unique to Betfair and will allow us to capture a greater share of wallet from existing customers as well as attracting new ones."

[Zenyatta]

As I said in the other thread, there may still be a chance for affected folks to salvage the situation:

"The only thing affected folks could try would be to attempt to negotiate with Betfair to get the charge down to an acceptable level. The fact they give a range (40-60) shows there might be some room for negotiation... I'd try to push for 35%"

Band together and negotiate or call it a day on Betfair?

[LeTiss]

They aren't interested Zenyatta, otherwise they wouldn't have done it

It's amazing how things have changed. In 2007, I attended one of Betfair's education nights that Scott Ferguson was involved in. It was at Brighton Racecourse, and there was a decent number of attendees.
It was the night I was introduced to BetAngel, in chatting to Scott he recommended this particular API.
However, the whole evening was geared towards trading.
BF were openly trying to educate people on achieving green books, so it's strange to see them now trying to get rid of these customers

[hgodden]

As I said in the other thread, there may still be a chance for affected folks to salvage the situation:

"The only thing affected folks could try would be to attempt to negotiate with Betfair to get the charge down to an acceptable level. The fact they give a range (40-60) shows there might be some room for negotiation... I'd try to push for 35%"

Band together and negotiate or call it a day on Betfair?

Worth a try, though I'm sure there would be a lot of cynicism about whether they'd listen, we wouldn't lose anything trying

[mcfc1981]

As of 20th June 2011, your exchange betting activity can be summarised as follows:

•Lifetime net profits = £296991.00
•Lifetime commission generated = £88598.00
•Markets bet = 51408
•Lifetime gross profits = £394101.00
•Lifetime commission generated to gross profits ratio = 22.5%
This means you are eligible to incur Premium Charges at higher rates. From 18th July 2011, the Premium Charge rate applicable to your betting will be 40%.

Please note that for the purposes of introducing a change to the Premium Charge rate that applies to your betting, we will assume that you have always incurred Premium Charges at the prevailing rate. This will ensure that you are considered to have generated total charges equal to at least 40% of your lifetime gross profits at the point the new rate becomes effective.

As of 20th June 2011, had you always incurred Premium Charges at 40%, you would be considered to have generated total charges of £157641.00 which is equal to 40.0% of your lifetime gross profits at this time.

Please click the button below to confirm that you have read the changes. However, please note that continued use of the service after 18th July 2011 constitutes acceptance of the changes to the terms.

WHAT R THEY TRYING TO SAY, R THEY GOING TO CHARGE ME MY BASIC COMMISSION ON ALL BETS THEN AT THE END OF THE WEEK TAKE 40% OF ANY PROFIT?

[Iron]

I disagree.

It's easier to retain a dissatisfied customer than to win back a lost customer. Why make things easier for Betfair?

Also, if someone's hitting you with a stick and you offer them an olive branch, it could be seen as a sign of weakness. They might start hitting you with the olive branch as well as the stick!

But seriously, a good negotiation tactic is to walk away from the negotiation and make the other guy do the work if he wants to retain your business (and if he doesn't, then so be it).

Jeff

Worth a try, though I'm sure there would be a lot of cynicism about whether they'd listen, we wouldn't lose anything trying [to negotiate with Betfair]

[LeTiss]

It's easier to retain a dissatisfied customer than to win back a lost customer.

Having worked in sales for many years, I agree with this 100%