Betfair does Dragons Den

[The Geek]

Amusing post from Dave Reybould on the Betdevil forums, and worthy of inclusion here....


Peter: So what`s to stop me getting my IT guys to knock up a website that does exactly the same thing.
Betfair guy: Absolutely nothing
Peter: I`m out.

James: Hi, I`m James. What do you charge?
Betfair: 5% commission, unless you win regularly, in which case it could be up to 60%.
James: And what do the competition charge?
Betfair: 2% introductory rate up to 5%, never more.
James: I`m out.

Duncan: So why would I place a bet with you rather than a bookies?
Betfair: The unique thing about Betfair is you bet against other punters?
Duncan: What difference does that make?
Betfair: Well, you can get 20% better odds and because you`re pitting your skill up against other punters you feel you have a greater chance of winning.
Duncan: But what`s the point in getting 20% better odds if you`re paying 60% commission to you guys.
Betfair: Well that only affects the small minority who regularly win
Duncan: So you`re telling me that you get better odds, and you can win regularly if you use your skill and judgement, and yet you`re also telling me that almost no-one does regularly win? And if they do you want to charge them more? This whole thing sounds ridiculous to me. I`m out.

Theo: So what`s unique about your site that would make me invest?
Betfair: Well, punters can lay and back bets, so by trading they can guarantee a profit rather than relying on luck.
Theo: That sounds good. And so these are the guys you charge the extra to?
Betfair: Yes, we think that`s fair, because they are deriving disproportionate benefit from the exchange.
Theo: Disproportionate benefit? You mean winning?
Betfair: Well, yes. But...
Theo: But you imagine they`ll pay the extra because yours is the only site which offers this feature.
Betfair: Well, no. But...
Theo: So it isn`t really unique then, is it?
Betfair: Well, no. But...
Theo: It sounds like you`re wasting my time. It sounds to me like there`s nothing unique about your product, yet you want anyone who uses it successfully to be charged 30 times what they would pay using your rivals. How are you going to advertise that?
Betfair: We were thinking about getting Danny Baker:
Theo: I`m out.

Deborah: I have no idea what anyone`s talking about, so I`m out.

[PC0845]

OK then, whats the chances of a toy ever being available on Betdaq, despite lower liquidity I would switch tomorrow ? Are there trading applications for the DAQ (don't answer if I'm overstepping the line about competition ) etc...

[Firkinelle]

OK then, whats the chances of a toy ever being available on Betdaq, despite lower liquidity I would switch tomorrow ? Are there trading applications for the DAQ (don't answer if I'm overstepping the line about competition ) etc...

Look on Betdaq's web site they offer apps for you

[custard]

They also offer low liquidity and slow settling of markets.

[PC0845]

Look on Betdaq's web site they offer apps for you

I know they offer apps, but they don't have a toy !!!!! Never, I presume ?

[The Geek]

OK then, whats the chances of a toy ever being available on Betdaq, despite lower liquidity I would switch tomorrow ? Are there trading applications for the DAQ (don't answer if I'm overstepping the line about competition ) etc...

There are, it just doesn't have the liquidity. Only a small percentage of Betfair customers use trading / bot products. { Single digits I believe. }

Throw into the mix, that rather than contact all customers directly, Betfair have just emailed those affected & stuck this on the forums in English. So again only a very small proportion of customers are actually going to know about this.

When they brought the first PC in, The meltdown was worse than this, and everyone vowed to move to Betdaq. On the day the PC came in, 10% less people used BTP. On the next day, they were all back.

In my lowly opinion, I think Betfair bringing in the cross matching skim & the premium charge were seriously short sighted management decisions sacrificing the founding ethos & USP of one of the best brands in the world in return for chasing short term gains. I think the damage they have done to the brand with these things is a shame. I also think going public was a big mistake for them too, as from this point forward short term gains are going to be higher on the agenda.

Read something in the papers today, about "Troubled Betting operator Betfair". Troubled my ass, they've still got a near the whole market on exchange betting, are very profitable, numbers are growing, it's they just aren't up to the expectations of shareholders. { Who were muppets to pay way over the odds for the shares in the first place. }

[Shaun]

I think in the long term only those people not happy with the profits they make will leave or find other solutions.