For many poker fans, the mysterious world of backing, wagering and swapping in poker is completely unknown. Conversations on these topics are frequent among some of the best and richest poker players in the world, but few focus on this particular area of poker’s hidden underworld.
In a recent blog post, poker players Lynn Kee (Pictured) explains in more detail how staking deals are created, how people make money from them, and why, in her opinion, you probably shouldn’t be supporting anyone.You can read the original post here
I was talking to a guy recently who asked me if I knew anyone who supports people getting high real-time cash ($50/$100+) and he said “it seems like a lot of people have lost their buying and betting, including myself, Haha,” It’s ironic, but it got me thinking:
Why are so many people losing support and buying behavior?
What is support?
Generally, people need to support/sell actions because They don’t have the funds to play the bets they want they themselves. They don’t have funds because they don’t win (enough) at all.
There are many reasons why this happens:
- Maybe they have to do another job to pay the bills, so even if they win there isn’t enough time to play (a big IF by the way)
- Maybe they have a problem with repair races and/or sports betting issues
- Maybe they have tilt issues or freeze/put too many chips at high voltage points
- Maybe their fundamentals are simply not good enough.
Most people who come to me for support claim to be the first reason. Instinct and experience tell me it’s usually third or fourth.
Consistent winners rarely need support or long-term selling, which means that among those seeking outside investment, it reasonably favors those who do not.
For these reasons (and because I have lost a million dollars support and buying actions), I almost never get involved with support people.
Types of Players You Can Profit From
With that said, let’s talk about the exceptions to the rules, and the players you can expect to support in a profitable way. I’ll be frank, I can’t think of much.
1. Winning players in tough times
A player who has been winning for years but suddenly has a big (unexpected) bill that slashes their bankroll.
The problem with these players: People simply don’t tell the truth very often.
I’ve seen too many horror stories of not their mother getting cancer, but a regressing blackjack problem or a major downfall.
I know there will be emergencies, but why don’t you have money in the first place?Not having money makes me think they are not good at managing money, in which case I really Don’t want them to manage mine.
If they do have an emergency, there are usually ongoing consequences (and costs) to deal with. I have a very strict policy of not having a business relationship with anyone desperate, which conflicts with that. Desperate people tend to be more reckless and immoral, and stress can severely inhibit the ability to make good decisions.
What is exchange? Why do poker players swap with each other?
2. New players
An up-and-coming player in the poker world and Pretty new game. The second part of this sentence is very important because if they didn’t manage to up the ante the first few hits, why should I expect this time to be any different?
“If they didn’t manage to up the ante on the first few shots, why should I expect this time to be any different?”
The problem with these players is that while we joke that the high stakes are soft, games tend to get harder, or at least trickier, as they get bigger, which means there can be a learning curve, unless I’m really like you and I don’t want to suffer with you.
3. Serial Horse
In the end, this is a player who has always been supported, simply because that’s how they’re used to doing things. This is usually the person who wins every bet they’re involved in, and those bets usually end for one of the following reasons:
- Because supporters want to get rid of support
- Players want to up the ante faster than their backers
- or because of personal issues
The third is usually rare because two people usually need a good relationship to start supporting an agreement, and people like those who make money for them.
I like to support this type of player. Especially if their former backers can vouch for their character and poker prowess.Unfortunately, these players don’t show up very often, and they tend to know their worth, which they often show in the form of demand more favorable profit distribution.
How to make money
Hopefully you’re less inclined to support people now. Buying is a better deal for investors because you don’t pay the inherent staking markup, and it’s much simpler to do on a per-session basis if you’re not married to your horse.
However, if you still go out of your way to support your friend, girlfriend, or nephew, there are things you can do to make the agreement work in your favor.
Poker Money Management in 2022: An Introduction
1. Profit buffer
As far as betting is concerned, usually both the backer and the horse take profits when the horse wins, which means that the amount of the bet is always 0 or negative, except for the brief time between the winning reservation and the next settlement.
Makeup is unavoidable, but a lot of it is not a good thing for a variety of reasons. Players already tend to play worse on downwinds, and a lot of makeup tends to increase stress (for both sides), reduce motivation, and encourage shady behavior.
One of the ways we can reduce the likelihood of horses being heavily makeup is by implementing profit buffers.
The easiest way to explain how the profit buffer works is with an example. Suppose backer Ana agrees to a profit buffer of $20,000 with her horse Candace. That means, not a penny of profit is cut until Candace wins a $20,000 stake.
Let’s say Candace has a good first quarter today and wins $23,000. Of her winnings, $23,000 of which is still “bet”, Anna and Candace each cut $1,500.
The next session, Candace underperformed, losing $10,000. Instead of $10,000 worth of cosmetic items, the bet amount is now +$10,000.
2. Less favorable profit distribution
I’ve seen this in multiple ways. The simplest is that the horse wins the first $X and they get a 30/70 profit share (30% for the horse, 70% for the supporter), then the next $Y, it’s 40/60, and so on .
Often, proponents insist that Ma keep the profits on equity to realize an increase in profit distribution, for example, assuming that on the first $100,000 in profits, Ma gets 30%. When the stake is between $100,000-$200,000, they will get 40% and so on, which means if they want to “step up to the next level” and get 40% profit, but once they do, they will get An additional 10% of the total amount.
A few other ways for supporters are:
- Approach A: Give the horses a better distribution of profits instead of insisting that the horses bet their profits because in theory, they’ve made you some money now and prove they’re more likely to be the winners
- Method B: Only give their horses a profit distribution that adds to the extra profit. For example, if they wanted to chop $120,000 in the example provided above, they would get 30% of the first $100,000 and 40% of the amount over that (the next $20,000), for a total of 38,000, not 40% of the total profit ($120,000) to $48,000.
I don’t have a strong feeling about method A that horses don’t have to keep profits on the bet, because while this protects supporters well, it’s simply not feasible for many horses that need money.
I don’t like Approach B because horses have little incentive to keep profits on the staking when they only get the improved profit distribution of the extra profit, and I think there’s value in rewarding delayed gratification, especially when it protects yourself at the same time interests. (The horse that keeps the money in the shares functions like a profit buffer.)
3. Provide them with tutoring/learning tools
Unless you’re using a class 3 player (as above), you probably don’t have a winning player. Even if you do, the extra training and improved hourly hours will only help your horse make money for both of you. For this reason, I generally encourage supporters to personally provide guidance/resources (ranges, learning tools, etc.) or certify that their horses can use them.
I like to bet the costs associated with coaching and learning, for example, if the current makeup amount is $2,000 and the cost of coaching is $500, the new makeup amount is $2,500 because I feel like it’s a win-win .
Do you know all 14 of the best poker training sites for 2022?
It doesn’t hurt the backers because as long as your horse eventually removes makeup, you get 100% back, which is good for the horse, because now you’re just getting guidance for dollars you didn’t get to pay out-of-pocket. You’re charging with your future earnings, and it doesn’t matter because you’re just giving your future a gift of higher win rates!