Senshi Hawk
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Posted - 2011.06.29 02:29:00 -
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Note: I've always been on the side of the stakee rather than the investor in these situtations, and I am by no means a master of this trade, but I've seen it often enough in real life situations to think it can apply to, and be profitable in, Eve Online. If this breaks any of CCP's rules please let me know.
Staking is used in live and online poker in both cash/ring games, single- and multi- table tournaments as a way for a good player to play at higher stakes than he may or may not be capable of playing. It allows the investor to coach or simply observe his stakee as he plays at the expense of a division of profits. Many things can determine how much of a cut the investor receives, as well as various terms of voiding the stake.
The baseline for staking deals is 50/50 split. This can be influenced by how good he is, how often he will be cashing out (even though makeup cashouts during the stake are generally bad for the staker) due to an expiring sub, a vicious downswing or if he wants to focus on in-game Eve projects, and how trustworthy he is. Be aware that even well known people with solid references are risky, due to the new element of scamming this adds, and this should be reflected in the cut. And finally, the amount of coaching you're giving the stakee.
When the 50/50 split gets changed, there are no hard and fast rules to how it gets changed, and it is dependent on the discretion and negotiating skills of both parties.
Common ways it gets changed include:
- volume clauses, where if a stakee's time spent playing is below a minimum amount, his split worsens
- allowing very good stakees to "name their price", having splits ranging from 60/40 to 40/60, in exchange for a tighter or looser set of stakee clauses based on his wishes
- reinvesting, or adding a makeup stake if the stakee cashes out during the stake and/or ends the stake in makeup (makeup = at a loss). This is at the expense of the stakee, but can also act as incentive for the stakee to pull his chin up off the ground
- taking more profits if you include extensive coaching
- start at 50/50 but give more % if they hit certain profit targets
I know this is somewhat vague but the fact is I've seen contracts vary significantly since there really are no hard and fast rules, and I've had my contracts changed a lot since I started in order to manipulate my profits and align my interests with investors. (i.e. if they want me to be playing a lot they try to give the stakee incentives to do so).
I've just given you some idea on the range of how it could work depending on how good he is, how often he needs to cash out, and how much you trust him. Like said, if you prefer to coach your stakee's gameplay, then you probably shouldn't give him the most favorable end of that range. It is to be said that the vast majority of these contracts favor the investor. Even in the event that you have a very talented stakee, realistically the investor will not have to bargain away more than 10% of his cut. Rule of thumb: if a stakee NEEDS the stake in order to be a good player, then you really do not have much equity on your investment.
We also must acknowledge that Eve is NOT a poker game, and with such it may be very difficult for both the investor and the stakee to analyze how good a stakee is. My initial thought is that references will need to come from other established EOH players and/or profit records from online poker sites through websites such as SharkScope or the Hold'Em Manager HUD App.
This idea needs to be refined, but I think it can work. Looking forward to opinions and questions.
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