Was reading a thread about PPH and then was thinking about all the fees involved...
How can they possibly make money?
1) They probably pay $5 per account per week for each player, maybe more i have no clue
2) In this type of business W/U or M/G are usually used so you have to cover fees on all payouts/withdrawals( if you deal only with locals you wont have this expense)
3) You pay your sub agent 25% of all net losses per week.
If everyone picked 48% winners which would be a bookies web dream you still have weeks where your players are wining big. If you had a players that won 900 1 week and lost 1,000 the next week. every single week of the year, the 25% your giving the sub agent would eat up all your profits and more. This is not to mention the fees you pay the PPH website or 5-20 bucks in fees your paying per pay out. Seems only way to make a profit here is if everyone always lost every single week. You couldn't afford variance where they win 1 week loose 1 week or else youd get murdered by giving your sub agent 25%
Or does it just come down too....if you have a big enough clientele you wont ever have weeks where the players win?