Backing in Poker – What is It?
If to calculate likely risks properly, one can earn good money financing poker players. For the player, this timely help is also rather beneficial – due to additional funds he can smooth dispersion and start playing high limits. This investment is called “Backing” and it can be full or partial.
If Backing is full, the player uses only invested money. In case of partial Backing he invests his own money as well.
Search of winning players
Many poker forums have special platforms for Backing. There poker players offer their candidates for funding. In the Backing application player points out:
- their games statistics;
- terms of profit shares;
- tournaments, in which he plans to play with the borrowed funds.
There are always a lot of offers for cooperation. To make Backing profit, one need to choose candidate for funding very carefully. “Freshmen” in this business, in chase of big profits, may come across fraudsters and lose their money.
Types of Backing – kickback
The easiest way of financial partnership is considered to be Backing with kickback. Investor gets interest that he/she will receive in case of victory. It should be remembered that players often withhold part of the profit.
For example, sale of 10% interest for a hundred of $ 10 tournaments. Having decided to buy a whole offer, you invest $ 100. From this moment 10% of the player’s winnings (in the hundred of tournaments) go to you, regardless of the winnings amount. Expecting big winnings, poker players often withhold kickback (up to 50%). If a kickback equals to 10%, in case of $ 2000 winnings, player will receive $ 200, and the Becker will receive his/her 10% from the remaining $ 1800.
Some deals suggest flexible kickback: the bigger the amount of winnings – the smaller the percentage of return.
Backing with index
This type of shares sale is the most common, as it is considered to be the most favorable for the players as well as for the investors. The point is simple – you are offered to buy a package with the set index. It means that the investor transfers on the player’s account the amount claimed, taking into account set index. After the games the investor receives his / her winnings income (interest).
A player offers to buy 10% for a hundred of $ 10 tournaments with an index of 1.15. This means that you give not $ 100, but $ 115. Here, $ 15 is a guaranteed income of the player in case of failure.
Backing is a good way to make money. But remember that choosing candidate for funding, you should verify their honesty and calculate not only the anticipated profit, but likely risks as well.