Betfair Commission alert
following on from our previous post about using BSP as an alternative to standard bookmakers in this article, we will look at how to reduce your Betfair commission rate down to just 2%.
Relatively new kids on the block in the exchange market Matchbook have a 2% standard commission rate on all winning bets on their exchange. This has obviously rattled Betfair who have been dominant in the Exchange market for years.
They have recently responded by creating their "Rewards" programme. This is currently in Beta testing so you may or may not see this on your Betfair account.
When I logged into Betfair recently I was presented with a screen asking me to choose which rewards programme I wanted to be set up on. The message has a 3 week time warning on it whereby if you don't choose which programme you wish to go on you will be put on the default "Rewards" option.
See the screenshot below for the 3 rewards options.
Which option is best for you
As you can see from the screenshot there is a massive difference in the commission levels available. Unless you want the gimmicks of 10% back on your monthly net losses, free spins on the Casino and free plays on Beat the Drop (whatever that is) then paying 8% commission is just plain crazy - oh sorry forgot you get a free £10 acca every month - good luck with that one - then choosing the 'Rewards Plus' option is a non-starter.
Then you have the Rewards programme (this is the one you will be put on by default), whereby you get a free £5 acca, 10 free spins at the Casino and 1 free play on the Beat the Drop and you will pay the standard 5% commission.
The Basic option removes all the gimmicky freebies and gives you just a 2% commission rate on all winnings. The only major downside to this option is that you will lose Best Odds Guarantees on their sportsbook.
Currently, Betfair operates on a points-based system that reduces your commission level each week depending on your betting volumes (win or lose). This gives you a reduction factor but if you don't keep the volume up week to week your commission creeps up again as your discount degrades.
One question that I have not been able to get an answer to so far is 'will this replace the system that reduces your commission dependant on your betting volume' (I have a feeling it will). If there is no relationship between your volume and commission rate, if you opt for the 5% or 8% rewards option you may well be stuck with that commission rate going forward although at the moment it does allow you to change which rewards package you wish to be on.
I personally have opted for the Basic Rewards option as I don't want all the gimmicks and rarely use the Betfair Sportsbook for BOG as they are only available after 8 am in the morning and I am using Betfair SP more and more and 2% commission makes a big difference to your P&L over time.
So now you know how to reduce your Betfair commission down to 2% but we value your feedback on what you feel is the best option. Please leave any comments below...
The team at Cleeve
P.S. After taking into consideration members comments, we will be releasing an update to the 'Can you make a profit backing Cleeve Racing tips to Betfair SP' post very shortly.