<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by FatFrank:
RPM, the biz model (20%BONUS/DIME LINE PROGRAM) is a NEGATIVE ONE. Who else does it? NAB did for awhile...
I would like for McIrish to comment...<HR></BLOCKQUOTE>
Frank can I catch my breath first? I have been laughing at this whole thread for the last half hour. If your street guy said they are going out of business it must be all over. LOL.
Actually like the rest of you I have no idea what the plan is here. I will say on 10 cent lines the margin is
very tight. We shut down for bases because it wasn't good for us (not to mention you have to work every day) and we never heard of 10 cent lines back then. Don't know how any of the books do it to be honest but they do. So basically in this case since the industry has pretty much gone or going to dime lines you are saying the addition of the 20% reload will put them under? I seriously doubt it Frank, why go through all this with BigBook on 6/30? Why not run with all the money now if they couldn't make this work? They know what all the numbers are and we don't, for us to even pretend to know whether a book is going under or not is kind of foolish IMO.
I have no crystal ball on any of the books but I don't think there is any problem here. Like you I don't know about any of this, even the reload bonus I'm not clear on? Is it just for people who went busted? For instance sometimes you aren't eligible if you took a withdrawal in the last so many days. Is it capped at $200? If so that's nothing. Pinnacle and their standard 8 cent lines is much worse than this over the long haul on a book. Looks like maybe they are targeting squares with this if the cap is $200 and it's only for reloads. It's got to be higher than $200, even then I don't think it's time to sound an alarm over a promotion, LOL. Also did they shut down their tennis, soccer, Nascar, AFL, WNBA and all their other outlets and just relying on baseball now? If not check with your street guy again and see if these sports are making any money.
The margin on any book with 20% reloads and dealing 10 cent lines is tough to outrun I would think, no doubt about it. As I mentioned I don't see how Pinnacle does it on 8 cent lines, I really don't. However because a book offers a promotion I think it's a little silly to wave the white flag. Books offer things they can't make money on all the time as part of their overall marketing plan. Teaser and parlays at true odds, free half points, no juice Fridays etc....
I have talked to these people a number of times and they are a very sharp crew in my opinion. I wouldn't hesitate to play with them and in fact will be sending them a load very shortly. I guess that answers whether or not I think they will have a problem in the near future. Anyway carry on, I have enjoyed reading the thread so far....