Big Questions

I could have written this post on Friday, but instead decided to wait a few more days to let the dust settle. I want this post to have some meaning so rushing in without fully thinking things through would have been wrong. Sleeping on my thoughts and letting the emotions die down a little seemed the sensible option.

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Okay, I think I'm ready...

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My initial reaction when Betfair announced the new premium charge was the same as many others that frequent the Betfair forum - utter disbelief! As a loyal customer since December 2001 I have championed the company's cause to anyone that would listen. This hasn't always been an easy task (especially to the non-gambling community) but despite this I've continued to enlighten those about the Betfair revolution as best I could. During this time I've also been happy to pay my way through commission charges. Afterall, Betfair have provided a fantastic service and without them there wouldn't have been the opportunity for people like me to 'trade' on sporting events. Granted, it's only within the last couple of years that these sums have become significant in value but even before this I was still making a regular contribution - a contribution that Betfair could rely on. This has left me baffled. Why would Betfair what to victimise their most loyal and supportive customers? What have I done to make them want to alienate me? Surely I'm a customer who (hopefully) inspires small time players that bigger things are possible and in turn this must benefit the exchange through more liquidity etc.? Shouldn't I be considered as a cost saving when it comes to marketing budgets?

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Apparently not, and despite my best efforts I can't answer any of these questions with a level of confidence in what the answers may be. If you look at the replies during their recent Q&A session you'll see explanations based on the cost incurred in attracting new users to the exchange etc. but is this my problem? Why am I being penalised for working harder than others and winning as a result? I'm not a Bot user and I don't syphon Betfair data - it just doesn't make sense! The business model adopted by Betfair over the last seven years has been hugely successful and whilst I appreciate investments have been needed to cope with the increase in business levels, surely the interest received on loyal clients' funds must have helped soften the blow? As a whole, the Q&A session they hosted was a complete joke which raised just as many questions as answers but don't take my word for it, judge for yourself by going the to the Forum Chat section of the Betfair Forum. If you haven't already done so, I'd also suggest you look at Betfair's last set of annual accounts. This isn't a company that's struggling, far from it - this is a company that's growing quickly. Now that it's hit a certain size it would seem that the initial ethos behind the original idea has been lost. Is it a coincidence that the Betfair Big Wigs have decided to launch these changes whilst Andrew 'Bert' Black is on a sabbatical?

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This leads me onto another point - change. As a rule of thumb not many people like it. Generally, people like routine and a feeling of stability, so introducing changes that would affect a gambler's 'income' was always going to be difficult. This bit I concede, but what I can't justify is the complete shambles Betfair have made in their attempt to communicate the concept. If any of you are familiar with the works of Kurt Lewin then you'll already know his thoughts on change needing to be a three step process - unfreeze, change, refreeze. The unfreeze stage here is crucial, as it tells the world about the 'need' and prepares those that will be affected. It helps break down defences and helps those involved see the bigger picture. Have Betfair missed this important part of the jigsaw? I think so. Emails and Q&A sessions will only work to a certain degree after the event, with confidence in the company already dented, how much damage will be irreversible?

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I haven't even touched on the complexities of the premum charge - I'll leave this to fellow blogger Cassini - but in short, this has become a PR disaster with Racing UK discussing the topic at length, the Daily Mail reporting of 'crisis meetings' and some 'sharp minds' using YouTube to illustrate their frustrations.

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I could go on but I won't. Hopefully you can see the points I'm trying to get across and even though this post was aimed at getting a reaction, most of all I want Betfair to listen. It's not too late, there must be a better way.

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