Poker Bay - My Business Plan. Market Research.

[EvilPie]

Just spotted the reward points thing.

Brilliant. As a grimmer I can sell huge %s of lots of comps. I'll play them because I actually enjoy poker. If I win big I can settle my grim up early. If not I'll stick with the long con.

Once I've built up my reward points I can go for the big one. Let's make it the WSOP main event.

"Can I have my $10k up front please?" Now all I need to do I decide if I'm happy with my $10k or if I really want to go for it and get the entire world.

[paulhouk03]

How could u prevent ppl from over selling or


How would you track players in tourneys that do not have their results published ie small casino tourneys or non Hendon mob tourneys

[cambridgealex]

Rewards points system
You can gain rewards points by selling packages, returning profit to your backers and bidding on auctions and paying up in time.
Rewards points are a great way to show your reliability and will make a massive difference if you’re selling a package. You can also get reduced buyers and sellers fees.
Rewards Points (RPs) – 1point for a “no complaints” auction. Bonus points for an auction where you cash and return the profit to the buyers within 7 days –
o   5 points returning £100-£1000
o   10 points returning £1000-£5000
o   20points returning £5000-£20,000
o   40 points returning £20,000-£50,000
o   100 points returning £50,000+
Buying action and promptly paying gains you rewards points equal to 1% of the amount bought (rounded to the nearest £100). E.g. If you buy £240 worth of action, you get 2 points.

You need certain amount of rewards points to get the money upfront for certain buyins. E.g 30 points for a £3k stake. To get 30 points you'll have to have returned more than £3k so as a long term grim it won't work.

With you're example of MR Fish selling 95% of himself in the main. Firstly its 80% maximum, and secondly if he sold out at 1.0, I'd only profit from the seller's fee, which for a $9500 package, would be about $100.

[cambridgealex]

How could u prevent ppl from over selling or
How would you track players in tourneys that do not have their results published ie small casino tourneys or non Hendon mob tourneys

Over selling as in, selling >100% of themselves by selling elsewhere? Can't help that.

Can't sell for comps that the results aren't published online.

[aaron1867]

Good idea? Yes.

Good business idea? No.

Also, James Keys did not invent the auction, I saw it well before 2011.

Good luck though.

[cambridgealex]

I don't see how the running costs would be as high as people have said. What sort of costs? I was going to use sagepay (similar to paypal) as a payment gateway. So moving the money around costs not a lot. It'll cost my time and employing an accountant and probably someone to do admin work like organising the calendar of events etc. And Advertising and Promotion. What else?

I wouldn't need to sell many packages a month to breakeven at all. If my figures are realistic, I could sell 5 in the first month and 20 in the 12th month, and generate £10k revenue, which would cover the cost of the site and midway through the second year it'd start turning a profit.

So that's selling 20 packages a month by the second year. When I did the research there was 52 packages sold in a 2month period on blonde. If it takes off then I think that's possible.

[pleno1]

10k seems a huge chunk to take out of the economy, how would it effect it if at all?

[cambridgealex]

10k seems a huge chunk to take out of the economy, how would it effect it if at all?

I hadn't thought of that.

[EvilPie]

10k seems a huge chunk to take out of the economy, how would it effect it if at all?

Eh? I thought you were in the business? How can you possibly think that £10k is anything more than insignificant?

Every poker comp with a £100k prizepool takes that amount out.

Pokerstars take $15k every week from the Sunday million alone.

Alex's projected £10k means absolutely nothing.

[cambridgealex]

I guess he means out of the UK staking economy where large amounts aren't taken out as there's never been any rake or commission before

[EvilPie]

I guess he means out of the UK staking economy where large amounts aren't taken out as there's never been any rake or commission before

It's still a tiny amount. If you assume 20 x £10k packages where I guess you'll take the minimum 1% from the seller. That's £2000 gone.

At 1.3 markup selling 50% that's another £4500 gone.

It's only £6500 out of £200k where they were paying approx £20k in rake anyway.

If it's just money out of the UK staking economy then it's only £4500 although it's out of £130k staked. Still not a lot really.

Can't see how it would be any problem at all.

Your only problem is grimmers and unfortunately it's a big problem.

[EvilPie]

I can't see where people think there are big running costs in this. Big set up costs yes but I'm pretty sure it can be run by one person with very little ongoing costs.

How many hours do you think you'd have to put in to generate the £10k projected first year revenue?

You say you'll be in profit after 18 months but have you taken paying yourself a wage in to account with this?

[cambridgealex]

not taken into account paying a wage no. I think it'd mean I play less poker, but not much less. I think it'd just eat into the time I spend reading blonde and lazing in bed tbh!

[EvilPie]

not taken into account paying a wage no. I think it'd mean I play less poker, but not much less. I think it'd just eat into the time I spend reading blonde and lazing in bed tbh!

So it's just a hobby then?

You still need to pay yourself a wage at some stage though otherwise what's the point. I understand that the profit will be your wage but you need to project how much that's going to be in order to figure out if you have a viable business.

If you could get it to run at a high enough volume to generate a reasonable wage for yourself how many hours would you have to spend running it?

I'd say that you want to be making £50k p/a out of it for it to be worth doing long term. How many hours would you have to invest? Don't forget that it's going to be taxed as well once you take it as a wage.

How would this compare to your projected (un-taxed) poker income?

[Bertpup]

Are you planning on people being able to auction off online action?