Commission on Betting Exchanges

[Matt Punt]

Following a great chat a couple of days ago with Jason Trost of Smarkets.com (check the chat feature bottom right to join in), I thought I'd open the floor to suggestions on how exchanges should make their money. Do they sick with a commission system with points, membership fees, some sort of flat fee, reward losers ?

Jason mentioned that they were still discussing the merits of different ideas on this, now might be your chance to influence them before they launch. I have to say I was impressed with their ideas - well I would be because they match many of my own! :) But seriously, they are looking to take the social route to exchange betting, you will be able to 'add friends', have profile pages, interact with everyone. It promises to be a very different experience to all the other copycat exchanges which have all pretty much failed - and they use the same style commission system as Betfair.

What is the right way to go about it ?

[Gordon McIvor Wilson]

Here's a story about the founder of Betfair, and what he did to achieve his great Betting Exchange business - have a look at http://www.startups.co.uk/6678842909946752674/andrew-black.html

What a star!

[Anton Whalley]

http://en.beterz.com/ ?
Again richard has hit it on the head for me.
Less commission if you interact.

[Philip George Harfleet]

How could punters be certain that their cash would be safe with a newcomer? I agree that a simpler setup would be welcome by thousands of ordinary punters (i.e. not 'traders') - but most of their needs are catered for by Hill's Ladbrokes and the rest of the bookie fraternity.

These bookmakers have a large part of the market because their systems are straightforward and you can have a variety of bets with no trouble.

Personally, being a bit of a wet blanket I guess, I think it would be a struggle to organise and administer.

Phil.

[Mark Iverson]

Hi Matt,

I definitely think there's a market for an exchange facebook equivalent but I think that product is aimed at the average punter who fancies the odd flutter than someone who takes their betting a little more seriously.

If this is the market Jason is aiming at, then I'd say he has a good chance of succeeding.

[Gordon McIvor Wilson]

Its the 'co-operative' model, everyone likes the 'divi'. And if it's friendly, chatty, bloggy (just like all of us) then so much the better. Its the New Generation sports trading style!

[Richard Stoddart]

Link comission to participation within the site. The more you interact the less u pay. Also the use of invitations to friends who when they take up the offer of coming to join the site your comission goes down again.