Peter: So what`s to stop me getting my IT guys to knock up a website that does exactly the same thing.
Betfair guy: Absolutely nothing
Peter: I`m out.
James: Hi, I`m James. What do you charge?
Betfair: 5% commission, unless you win regularly, in which case it could be up to 60%.
James: And what do the competition charge?
Betfair: 2% introductory rate up to 5%, never more.
James: I`m out.
Duncan: So why would I place a bet with you rather than a bookies?
Betfair: The unique thing about Betfair is you bet against other punters?
Duncan: What difference does that make?
Betfair: Well, you can get 20% better odds and because you`re pitting your skill up against other punters you feel you have a greater chance of winning.
Duncan: But what`s the point in getting 20% better odds if you`re paying 60% commission to you guys.
Betfair: Well that only affects the small minority who regularly win
Duncan: So you`re telling me that you get better odds, and you can win regularly if you use your skill and judgement, and yet you`re also telling me that almost no-one does regularly win? And if they do you want to charge them more? This whole thing sounds ridiculous to me. I`m out.
Theo: So what`s unique about your site that would make me invest?
Betfair: Well, punters can lay and back bets, so by trading they can guarantee a profit rather than relying on luck.
Theo: That sounds good. And so these are the guys you charge the extra to?
Betfair: Yes, we think that`s fair, because they are deriving disproportionate benefit from the exchange.
Theo: Disproportionate benefit? You mean winning?
Betfair: Well, yes. But...
Theo: But you imagine they`ll pay the extra because yours is the only site which offers this feature.
Betfair: Well, no. But...
Theo: So it isn`t really unique then, is it?
Betfair: Well, no. But...
Theo: It sounds like you`re wasting my time. It sounds to me like there`s nothing unique about your product, yet you want anyone who uses it successfully to be charged 30 times what they would pay using your rivals. How are you going to advertise that?
Betfair: We were thinking about getting Danny Baker:
Theo: I`m out.
Deborah: I have no idea what anyone`s talking about, so I`m out.
