F
FloppyNutzs
Enthusiast
Silver Level
So, there are a few site out there still running subscription models where you pay X per month and get access to all games where you buy into those games with points.
The model isn't necessarily bad, but it can be flawed.
For example if the total payout for all games for a given month is less than the total revenue collected from membership fees the club is running upside down and eventually will fail.
So why not fix it such that they never fail?
How can you do this, it rather simple, just based the prizes you are going to give out for the following month based on a percentage of revenue you collected from membership fees in the previous month. Say that percentage is 90% such that the company keeps 10% for operational costs to run the severs, maintain the site and offer customer support. Similar to any no subscription based site keeping 10% for each tournament you play in.
The only flaw I see in the above model is that you have to offer some payout for month 1 and you might not know how many members you will get in that month. So as a company you run the risk of running upside down for one month.
Additionally you can be completely transparent with the users of the site on how it will operate. Allowing user to see how many paid subscriptions there are for given month and previous months. Also allowing user to see how much you will pay out for the following moth and how that breaks down into individual tournaments.
Say in month one offer a few games per day paying out a fixed amount.
Perhaps you offer five games paying out $5, one gaming paying out $25 and one game paying out $50 per day. If you only pay out $100 per day then you looking to pay out $3000 in that first month. The operator can change this model how they see fit, keep in mind this is just an example.
Now after month one all future months get calculated by software.
Let's say in month one you did well as a company and got 200 new members paying say $25 per month so in month one you earned $5000 - $3000 = $2000 minus operating costs.
No for month two you setup you tournaments to payout the the amount collected from the previous month minus 10% to help cover your operating cost to run your servers, and have some staff for customer support. So in this example in month two you payout ($25 * 200) * 0.9 = $4500. You setup your tournaments for month two accordingly offering maybe some bigger week end or month end finals.
No in month two the site grew again, perhaps it is doing well and it doubled in paying members to 400 paying members in month 2. So you repeat the process and in month 3 you offer ($25 * 400) * 0.9 = $9000.
You can use software to help you setup the tournaments for the next month, but you always base it off of how many member you had the previous month to protect your company from losing money.
As the site grows with paying members the prizes and monthly payouts it bigger and bigger. As the site declines with paying members the the prizes and monthly payouts decline.
What do you think about this model?
Would you play on a subscription site like this?
Let look at an existing subscription site and see why it might be failing.
Say a site has 1000 members paying $20 per month. Great they are getting $20,000 monthly in revenue from subscriptions. However, they offer a $1000 GTD nightly. So with this one game alone they are paying out over $30,00 per month and are already upside down. You see why eventually sites like this get behind on payouts as there is less $ coming in then there is going out.
So why not fix the model?
In the end as a poker player I just want to play at a site when I have confidence I'm going to get paid in a reasonable amount of time. Yes bigger prizes are more attracting, but not when the company can't pay because they are running upside down.
I would totally be behind a subscription site that could offer a new model like this that had transparency and flexibility and believe they in the long run they site would continue to grow allowing bigger and bigger prizes.
The model isn't necessarily bad, but it can be flawed.
For example if the total payout for all games for a given month is less than the total revenue collected from membership fees the club is running upside down and eventually will fail.
So why not fix it such that they never fail?
How can you do this, it rather simple, just based the prizes you are going to give out for the following month based on a percentage of revenue you collected from membership fees in the previous month. Say that percentage is 90% such that the company keeps 10% for operational costs to run the severs, maintain the site and offer customer support. Similar to any no subscription based site keeping 10% for each tournament you play in.
The only flaw I see in the above model is that you have to offer some payout for month 1 and you might not know how many members you will get in that month. So as a company you run the risk of running upside down for one month.
Additionally you can be completely transparent with the users of the site on how it will operate. Allowing user to see how many paid subscriptions there are for given month and previous months. Also allowing user to see how much you will pay out for the following moth and how that breaks down into individual tournaments.
Say in month one offer a few games per day paying out a fixed amount.
Perhaps you offer five games paying out $5, one gaming paying out $25 and one game paying out $50 per day. If you only pay out $100 per day then you looking to pay out $3000 in that first month. The operator can change this model how they see fit, keep in mind this is just an example.
Now after month one all future months get calculated by software.
Let's say in month one you did well as a company and got 200 new members paying say $25 per month so in month one you earned $5000 - $3000 = $2000 minus operating costs.
No for month two you setup you tournaments to payout the the amount collected from the previous month minus 10% to help cover your operating cost to run your servers, and have some staff for customer support. So in this example in month two you payout ($25 * 200) * 0.9 = $4500. You setup your tournaments for month two accordingly offering maybe some bigger week end or month end finals.
No in month two the site grew again, perhaps it is doing well and it doubled in paying members to 400 paying members in month 2. So you repeat the process and in month 3 you offer ($25 * 400) * 0.9 = $9000.
You can use software to help you setup the tournaments for the next month, but you always base it off of how many member you had the previous month to protect your company from losing money.
As the site grows with paying members the prizes and monthly payouts it bigger and bigger. As the site declines with paying members the the prizes and monthly payouts decline.
What do you think about this model?
Would you play on a subscription site like this?
Let look at an existing subscription site and see why it might be failing.
Say a site has 1000 members paying $20 per month. Great they are getting $20,000 monthly in revenue from subscriptions. However, they offer a $1000 GTD nightly. So with this one game alone they are paying out over $30,00 per month and are already upside down. You see why eventually sites like this get behind on payouts as there is less $ coming in then there is going out.
So why not fix the model?
In the end as a poker player I just want to play at a site when I have confidence I'm going to get paid in a reasonable amount of time. Yes bigger prizes are more attracting, but not when the company can't pay because they are running upside down.
I would totally be behind a subscription site that could offer a new model like this that had transparency and flexibility and believe they in the long run they site would continue to grow allowing bigger and bigger prizes.