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1st time getting staked: some advice please
Sen
Sunday Major
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March 1, 2014 - 6:45 am
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Hi TPE.

I've got the opportunity to get stacked by some close friends for pokerstars.fr (where I currently don't have any money up).

I am pretty confident in my play and hope to get around 300 – 500 tourneys/month for a max. of each 1/100th of my BR going with a ROI of 15 – 60%.

Now, the thing is I have no idea how to properly pay them. Is it fair, if, say, I get 4 people to stake me with 500€, for a total BR of 2000€, return them 50% of my net profit after each month, that is 12,5% for each.

I'd like some agreement that goes for 3 months, after this time we rediscuss if we continue or if they get back their initial investment back. This only works if I am profitable of course. If I am in the red at the end of the month I'll allow them to get back what is left of their money, or, if they want, let me continue to play (if I consider the BR to be still large enough to do so).

When I have a positive ROI I would withdraw my share of the winnings each month for 3 months, to always start with the same BR, unless we all agree that I continue with the increased BR and noone receives any of the profit for the month. Then the procedure continues until the end of the next month.

I want them to have a pretty fair deal, would be nice for everyone involved and I wonder if any of you have some ideas/advice how to do so. Is a 50/50 share fair? Should they get more or me? Etc. Thanks in advance.

jacobsharktank
Florida
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March 1, 2014 - 1:31 pm
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You don't mention anything about make up at the end of the stake. I don't know much at all about staking, but I know how to analyze investments. If you have no make up when the stake is over, then I would talk to them seriously about aggressive bankroll management in the event things go well. This gives you the opportunity to increase the outward bound curve of your potential profit but never actually putting up any risk yourself. It truly can be stress free at that point I would think. I would like to see some pros talk about this one though because I feel like everyone has a backer.

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Killingbird
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March 1, 2014 - 2:17 pm
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two part article series on this coming soon from Chris Moon.

jacobsharktank
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March 4, 2014 - 12:02 pm
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any word on dates kb?

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Killingbird
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March 5, 2014 - 11:19 am
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not 100% sure.  Might actually be in the next issue of Bluff magazine…that is TBD.

jacobsharktank
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March 5, 2014 - 11:31 am
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haha all right. hope to see it here but appreciate when material isn't necessarily behind a paywall. (actually do you even need to be logged in to read articles lol) i've only just recently started selling action and it's going a lot better than i had anticipated. because interest is actually this high, i want to make sure i get things right from the get go. i hate disappointing people, and it would be nice to see a sort of list talking about all the things you need to consider. it's really easy for me to say “i'm likely better than 10% of the field” but it's more difficult for me to say “this field is notoriously filled with multiple entries from a core group of breakeven regs who shoot themselves in the foot by punting stacks through misadjustments in the reentry period, causing my edge to increase dramatically when they have deeper stacks 3-4 hours in far less often than they would otherwise” and THEN give a number for it. im really good at finding things to talk about. i'm really bad at quantifying them in the grand scheme of things.

Sen
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March 9, 2014 - 1:54 pm
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Sounds great, let us know when it's out.

de lucca
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July 8, 2014 - 8:18 am
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Killingbird
Cary, NC

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July 8, 2014 - 2:22 pm
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Forgot to post this here!

 

…..ros-23076/

MovesLikeDarvin

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September 8, 2014 - 9:44 am
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sorry im just noticing this now, but the tl;dr synthesis of my article is:

avoid makeup – if you're going to be playing this stake thru to an undetermined end date, and your investors assume you will not quit in makeup, then you will essentially be selling insurance on your own action at 50% mark-up. most edges are not so vast that you can afford to give up 50% long-run and still make enough to live off of, so in general id avoid incurring makeup in the standard sense.

the corollary to this may be: have a well-defined start and end. if this is a date, number of tournaments, the duration of a particular series on .fr, etc. i had an all-encompassing staking deal where i did not define an end, and figuring out my options going forward became particularly murky when i got significantly stuck. 

in general, look out for your best interests as a player. it may be enticing to take a deal so that you can play bigger stakes, but often the best route is to play smaller and build up the BR yourself (this is advice that i myself have taken in my own poker ventures).

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