In a recent blog post by Mark davies I got into a discussion with someone in the comments about what it is that we buy from Betfair.
I put forward the argument that what we buy is the ability to bet on a market. If the net result of us betting on that market is such that we win we pay them for this opportunity in the form of commission (and PC). If the net result is that we lose we don't pay them.
However, Mark Davies has put forward the argument that what we are paying for is not actually the ability to bet upon a market but rather the flow of customers that facilitate us to bet on the market. As traders we tend to take more advantage of that than traditional punters and therefore that is the reason for the introduction of the Premium Charge.
I disagree with Mark and still believe that we are paying for the ability to bet upon the market and that the cost associated with bringing more people to Betfair is effectively a raw material, it is a component of the product that they ultimately produce. Just like a programmer is a cost to Bet Angel that ultimately brings us Bet Angel. It is not the bringing together of programmers and ideas that we are purchasing but rather the end product; Bet Angel.
What do others think?
What do you think we purchase from Betfair?
Do you agree with Mark?
What do we buy from Betfair?
You could use the same argument with EBay, or many other internet companies
Betfair wouldn't exist without their customers, so they are in a service industry
I agree with you, but only for people who bet
I'm not sure Betfair planned for so many people using their website as full time traders when they set out.
For people who are full-time traders, then Mark is right - Betfair provide us with a flow of customers to make our living
Betfair wouldn't exist without their customers, so they are in a service industry
I agree with you, but only for people who bet
I'm not sure Betfair planned for so many people using their website as full time traders when they set out.
For people who are full-time traders, then Mark is right - Betfair provide us with a flow of customers to make our living
I always assumed that I was buying/selling bets in a market, and hence pay commission plus pc to betfair , for their management of the bets.
if I win I pay, if not they still manage my buying/selling but I don’t pay.
that still is my opinion.
I have never read mark davies blog solely down to personal prejudice against corporations or more specifically, corporate types.
corporate types to me, like politicians never seem to be quite on the level; they seem to have a tendency to try to change/alter ideas/meanings/evidence, and other peoples experiences in quite subtle ways, to make people take or shift their view/belief in a direction that places them, their ideas or actions in a better light for the the purposes of the corporation that employs them.
quoting from above
“however, mark davies has put forward the argument that what we are paying for is not actually the ability to bet upon a market but rather the flow of customers that facilitate us to bet on the market.”
to me without having read the original argument on the blog the above quote is a fairly typical corporate type trying to manipulate peoples views/beliefs.
obviously I cant buy/sell bets in a market that 95% of the time in effect are only open for 10 minutes (pre race horse), without out a flow customers (be they bakers, layers or traders). That to me is as plain as the nose on my face, believe me that’s big enough.
in a nutshell i believe i buy bets from betfair, who manage them for me and the person who i bought them from, or sold them too.
if I win I pay, if not they still manage my buying/selling but I don’t pay.
that still is my opinion.
I have never read mark davies blog solely down to personal prejudice against corporations or more specifically, corporate types.
corporate types to me, like politicians never seem to be quite on the level; they seem to have a tendency to try to change/alter ideas/meanings/evidence, and other peoples experiences in quite subtle ways, to make people take or shift their view/belief in a direction that places them, their ideas or actions in a better light for the the purposes of the corporation that employs them.
quoting from above
“however, mark davies has put forward the argument that what we are paying for is not actually the ability to bet upon a market but rather the flow of customers that facilitate us to bet on the market.”
to me without having read the original argument on the blog the above quote is a fairly typical corporate type trying to manipulate peoples views/beliefs.
obviously I cant buy/sell bets in a market that 95% of the time in effect are only open for 10 minutes (pre race horse), without out a flow customers (be they bakers, layers or traders). That to me is as plain as the nose on my face, believe me that’s big enough.
in a nutshell i believe i buy bets from betfair, who manage them for me and the person who i bought them from, or sold them too.
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Mark argues that people who lay and back are both just placing a bet. So as traders surely we are just people who bet in such a way as to manage our risk differently to the traditional punter.LeTiss 4pm wrote:I agree with you, but only for people who bet
I'm not sure Betfair planned for so many people using their website as full time traders when they set out.
For people who are full-time traders, then Mark is right - Betfair provide us with a flow of customers to make our living
So I can't see how one set of customers is purchasing one thing while another set are purchasing something totally different?