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Dreyfus struck while the iron was hot, namely this story about Partouche cheating scandal. He created a controversial storyline which was easy for poker media sites to pick up, and was currently part of the conversation that was taking place on poker forums.
Most poker sites picked up the story, and some even newsjacked it themselves with opinion pieces to further the discussion.
Am I saying Dreyfus was disingenuous? Not at all, I do believe that he is trying to progress the game and discourage cheating, and I do believe that the GPI had always planned to introduce the concept of Player Trust Ratings too, which was the other big announcement from them in this story.
I just think he was very shrewd with his timing. The undisputed kings of newsjacking in gambling are Paddy Power, who are renowned for their publicity stunts with a hint of satire.
Just this week they did their classic newsjacking stunt of offering ridiculous odds on something in current affairs.
Not at all, but at presumably zero cost to themselves they have been mentioned in hundreds of national newspapers as a result.
Randy created his own version of the latest internet meme the Harlem Shuffle. Classic newsjacking, he took a conversation which was already happening, and put himself into it:.
The key to newsjacking is to get in there early. If you are one of the first to respond to it, you get an opportunity to become the authority on that subject.
If your website is the first to report on a story, it is the one which will get linked to by everyone else. I found myself, inadvertently, living this example a few months ago.
I was one of the first people to retweet the Daily Mail article about Phil Ivey not getting paid his winnings by Crockfords Casino.
At a 2x earnings multiple, the price Playtech is paying seems extremely low. The global affiliate marketing business has become much tougher in recent years, especially in poker, as sites switch away from discriminatory rakeback models.
On a monthly basis, we have about 90 million page views. Over the last year, it was in total 1. Warren : Without giving any specifics, what are the major markets that comprise of that 90 million?
Dominik : Well, our strongest market is the Russian-speaking countries. That followed by the German-speaking countries.
Then, you would have Spanish, French-speaking countries, Italy of course, all the regulated markets are also strong. Then, it kind of diversifies.
In total, I would say we have managed to become quite successful in pretty much all of the languages that we offer.
Our share of page views is almost getting a strong focus on the Russian market because there we are very successful. It just shows that our business model really works in different markets and different regions.
Many affiliates look at only first-time monthly depositors. I know that your business is a little bit different.
Can you tell our audience a little bit about the difference between the two and why looking at real money players is important for your business?
Just a little bit of insight. Is that true? Dominik : Yeah, of course. In poker, there is, of course, a strong correlation between how much money a player wins and how much money a player generates in rake.
The highest rakers are usually also winning players. Obviously, we teach all the bankroll management, we teach all the strategies.
The most successful poker players, they build a bankroll based on that. Once they have a certain amount of money, they move up to a higher limit.
It continues on going until they reach the highest stakes. It is mostly a skill game, actually. Yes, in in principle, there is a correlation between how skilled a player is and how much rake and profits for himself he actually generates.
It can actually be a nice win-win situation, in that instance. Warren : Since launching in , how many real money players has Poker Strategy generated?
Warren : Yes, definitely. How about on a monthly basis? Using an average of the last couple of months, what would you say the number is?
It kind of depends, but 30, is probably the right number. In some instances, we do know. It depends on the poker room.
Give or take, first time depositors I would say around to a month, roughly speaking. How does Poker Strategy acquire most of its new traffic and new customers coming into the site?
Dominik : Well, it is largely viral. Our main source of traffic is clearly existing customers recommending other people to join our community.
That is by far the most important acquisition channel for us. Now, we do try to incentivize that by having a Tell a Friend program where if you refer somebody to us you can get a small CPA for that.
In a nutshell, the answer is virality. Warren : You do have a paid referral program for players who refer other players, correct? Can you just tell our audience, in two minutes, why is that a bad idea for poker rooms to be avoiding strong players?
Dominik : Let me start with the first point. It is absolutely correct for poker rooms to recruit new players to the game and also recreation of players.
Ultimately, every dollar that can be won at poker by strong players that can be converted into rake must have been deposited by somebody else.
Increasing deposits from new players is very important for the sustainability of poker. There are multiple reasons for that. Of course, it can be an outrage in the communities.
At the end of the day, I think the most convincing argument that gets poker rooms that are on this misguided path to stop doing that is if you can rationally show that this is hurting their bottom line.
The actual details are really hard to explain in words. Warren : Sure. Some broader based questions for you, what were three of the key decisions you made in the infancy of the business that really helped make the company what it is today?
You rarely come home and suddenly everything is great. Warren : How did you stay focused on one site and one business? I think this is a mistake that many affiliates make.
The new affiliates in the first year, they launch 50 websites. How did you do that? Dominik : First of all, we just have one website.
What sort of deals to you tend to demand from the operators that you do work with and how have these changed as the site has grown in size and influence?
In principle we are quite agnostic because we treat customers the same way. So whether someone's on a CPA deal or a revenue share deal, the customer won't notice the difference.
From a business point of view, when we analyse the conversion merits of a deal, the quality of the partner is a key component; we analyse it but we don't have a specific preference between the two.
We always try to work for the longer term anyway, so even if you have a CPA deal we always try and make sure that there's strong value in those players.
The poker industry is small so we want to make sure that long term we have a good reputation within the industry.
The growth of influence that you mention is not really much to do with us, it's more to do with the competitive landscape in the poker industry.
You can see that the distance in product quality and liquidity between the top operators like PokerStars and everybody else is very big.
As a result of that, our commissions have increased but it's not because of our status as our position hasn't changed that much in the last few years.
Rather, it's the polarisation of the poker markets that drives those kind of deal structures. Are you not tempted to use your six-million-strong membership to create a poker room of your own?
This is a question that we're asked every couple of weeks and the answer is actually no. Our strength is in building a poker community and educating people about poker and how to play poker.
Becoming an operator is a huge operational hurdle that would drastically change our business model. We work on a non-exclusive basis with multiple poker rooms and we provide choice to customers.
Man, you just became my hero. I have not been around as long as you but I have made the same arguments over the last few years. WE invest a lot of money and time into providing articles, videos, a forum, coaching, and extra promos not to just drive players, but to HELP players.
Sure the general rakeback model has flaws, but as you pointed out that does not mean that by offering rakeback we are hurting the system or providing no value.
Bonus Code sites, and similar niches hurt much worse than RB, and there is more of them. When I first skimmed through the article last night, I knew it was a well written article and it was obvious the writers of it had carefully considered their opinions and even provided some valid points.
However while re-reading it today I realized how very self-serving the articles was. At the same time ignoring the bigger picture, that the argument could be made both ways.
Subscribe and we'll shoot you an email when we update a video or add a blog post. PokerStrategy makes a similar argument: It pays the first time when it invests capital into creating a strong brand that gets recommended by word of mouth or in forums cost for creating good software, providing tables full of fish, having a good customer support, famous pros, etc.
PS: nice pic chosen for the article. But let me dive into it, and process it more thoroughly. Thanks again Jacob. Pingback: roundersbuzz.I got into poker at Sunborn Gibraltar and got really excited about the mathematical challenge of the game, so I started playing it myself but I already had the passion for teaching. As a poker room, what do you have to do to be featured on the PokerStrategy site? We work on a Flaschendrehen Pflicht Aufgaben basis with multiple poker rooms and we provide choice to customers.