Thursday, 30 June 2011

No Alternative?

A promising start on Betdaq and I'm not a big 'fish' by any means. Liquidity was decent and if it gets even better after the 18th July then I'll be very happy.  Why not give it a try?  With no 20% deduction from the Betfair Premium Charge next week, over time it will make a big difference.

In A Nutshell

The fall-out continues, as most betting forums are swamped with users commenting on Betfairs latest increase in charges.  One post stood out more to me than the rest though and I hope 'andyfuller' doesn't mind me reproducing his post on the Bet Angel forum.  In my opinion it just about sums things up:
"You don't have to be making a fortune to be caught by this charge.  Say you have made £100,000 so far and make £50,000 a year net, you have 3 years left then you best find something else to do.

So if you make £50,000 which is decent money but far from being a big hitter and not exactly crazy money in the grand scheme of things you would have to think. Do I carry this on for 3 more years and then stop or do I go and get a job now that pays say £30,000.

The job has no risk to your own money, social benefits, regular income etc and a future.

Or do you carry on making your £50,000 and be yet more unemployable in three years.

Or what about the guy starting out who wanted to trade for a living, £250,000 is hardly a lifetimes income so why even bother starting unless you want to do it as a hobby or as a supplement to your regular income.

Giving £100,000 a year would have been acceptable, but not £250,000 a lifetime, that is only £25,000 a year for how long Betfair have been around which is very little given the risks people have taken.

Take a big hitter who can make £1,000,000 a year on Betfair, they now get to keep £400,000 which is very nice still but is it worth their efforts?

Now take the more realistic/achievable guy who make £100,000 a year, they now get to keep £40,000. Is that worth it, no not at all, there are much easier ways of making £40,000 a year.

So how many people do we have on here who was up until today looking to make trading their future who now thinks the charge doesn't affect them.

I know I wouldn't have put in all the effort I have with a carrot of £250,000 and then 40% of what I make each year there after dangling in front of me."

The big question now is will the ecology of the exchange change?  As someone on the Betfair forum commented, "It's like living on the Savannah and seeing them burning down the forest.   You think it doesn't affect you - till you see the elephants charging your way."
If anybody wants to hear a Betfair perspective on where the company is heading then I'd recommend listening to the webcast of David Yu (their current CEO) announcing their Full Year Results.  You can do so by clicking here.  

Wednesday, 29 June 2011

Bet Unfair

So, Betfair have decided to tinker with their Premium Charges yet again, except this time they've really gone for the jugular.  Instead of 20%, they now want 40-60% of your winnings depending on how much commission you generate for them.  The good news? There isn't any.  Your account will need to have a lifetime net profit of £250k (although it's likely this condition will get ditched in the near future) but Betfair are basically saying that if you keep winning you'll pay eventually.
For those who believe the spin that this only effects 0.1% of Betfair users, you are mistaken.  It effects everyone.  This is the issue.  Betfair have only looked at what it will cost them in losing these 500 or so accounts.  They've not taken the time to fully understand the impact these charges have on those below the 250k 'magic' number.  People aspiring to this level plan their lives around Betfair's charges and as in any line of business will do what they can to minimise the impact.
The result?  Everyone who's read about these new charges is either contemplating life without Betfair or thinking of a way not to pay.  Eitherway, it's a lose-lose situation for for a company who had huge customer loyalty and market awareness only a few years ago.

Surely it's time people started walking to Betdaq?  Full details of the new charges can be found here.

Thursday, 23 June 2011

Number 2

After what seems like an eternity, I'm chuffed to bits to be able to start telling people that I'm going to be a Dad for the 2nd time!  Nic is 13 weeks pregnant and the big day is predicted to be the 23rd December.  Okay, Christmas may have to be put on hold for a couple of weeks but what a fantastic way to finish the year!?!  After the drama we had with Caden's health, we all have our fingers crossed that this time things will turn out just fine.  Happy days :-)

Saturday, 11 June 2011

Catch The Pigeon

The thrilling T20 contest between Lancashire and Yorkshire last night reminded me of a freak occurrence that happened when these sides met back in 2009.
On a beautiful barmy summer evening Jacques Rudolph fielded a ball in the outfield and returned a throw to the stumps only for it to connect with a fleeing pigeon.
There was only one winner, and it still baffles me as to why the Sky producers thought it was okay to show a slow motion replay of the birds demise.  The video is not for the squeamish.

Wednesday, 8 June 2011

A Few Questions

It's always nice when someone takes an interest in what you do, so it was a pleasant surprise this week when Ben from 'Sports Trading Life' dropped me an email asking if I could answer a few questions to be put on his site.
Sitting down and thinking about the answers was fun, so if you're interested in what I said you can read the full article by clicking here.