Getting started in backing

[Choparno]

I'm considering backing someone for midstakes online MTTs and having never done this before, I'm looking for some general advice. Have just browsed the 2p2 staking forum, including Bond18's article, and understand that it's inherently a high-risk proposition for the backer.

Would like information such as: best method of keeping records, how to determine an optimal schedule for the stakee at the proposed stakes, how often to be in touch with them, tips on avoiding being scammed, and profit-sharing arrangments (e.g. when the stakee is up money, at what point is he supposed to send my % of profits). I assume the standard deal is 50/50 with makeup?

I already realise from reading that it's important to have a contract for sake of clarity (whether enforceable or not) with details like size of stake, duration, games to be played, termination clauses, etc.

[TurnRiva]

Tracking: There are some google docs available around the place, i can also link you to a program called mtt parser that will actually feed the information from their clients to a webpage for you.

Schedule: It's usually just easiest to give them BI rules (some backers give the horse a roll and drop BIs as the BR drops, but in reality if the player is +EV at the top end of the BIs, you both lose equity dropping them in levels)

Touching base: Use skype, timing is upto you, and really depends on the relationship.

Scammed: Get personal details and contact information, but nothing is fool proof. Try backing people that have a reputation, that they wont want to tarnish. Also people that play a lot of live events may be less likely to roll you. Lastly only leave them with an amount of money you feel safe with and then top them up as they need more, and get them to ship back when they are in profit.

Profit sharing: Set a number, when stake is up x, we will reset stake and take profit. The number is relevant to the stake amount and BIs being played.

50/50 make-up long term seems to be the standard for decent mtt players. Try and get a timeframe they will play with you set, and I personally make conditions about when they can leave when in make up. It can become an expensive endeavour if horses are leaving you in tons of MU with no way to redeem it.

Contract is meh, just make sure you have everything set up clearly on a site and make sure they post to agree, nothing is enforcable through law atm, so I dont see the need for paper contracts, but that is obv upto you.

Hope that helps

[risk2Dupside]

Happy to chat over skype re this

[thret]

Surely a contract would be legally enforceable? Particularly if you are both Australian. It isn't like either party is engaging in illegal activity and all transactions and results are recorded by the site(s). Of course if someone gambles away your money you aren't going to get it back, even if you successfully sue them in court.

[TurnRiva]

AFAIK it's not enforceable, maybe between 2 Aussies it is, I really dont know, I chose not to do law for a reason.

[Choparno]

Thanks TurnRiva.

Risk, yeah I'd appreciate hearing your thoughts on this.

[pattack]

Risk, yeah I'd appreciate hearing your thoughts on this.

I would do this, he knows a lot.