Thursday, 30 June 2011

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.  

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