Pool tournaments for black market events usually operate on some simple principles. The following is one model used from a ring that was busted because people got too greedy.
How it works:
Three types of people are needed, investors, players and owner. All three expect to get paid, the returns they get paid vary. I like to use small numbers, but scaling up works too, beware of scaling up because gossip travels.
The sales pitches.
Get at least 20 investors to put up $5 in exchange they get a return of $10.
Get at least 10 players to pay an entry fee of $20 in exchange for a winner take all prize of $250 (it has to be more than the sum of entry fee).
The owner invests at least $100.
Investors bring in at least $100, players bring in $200 and the owner puts up $100. A total of $400.
To pay off the investors costs $200, to pay off the top prize costs $250 and the owner puts up(loses) $50.
The attraction expenses are left out because they are left out, by choice.
The owner can put on the show at loss of $50, but if he impresses clients, the owners return is future clients. Future clients can be used to make up for past losses. If on the next event, past investors were happy, they will spread the word to get more investors. In order to have the event pay for itself, you'd need 10 more investors, anymore than that is pure profit.
An owner makes money when future investors want to support an event. Payment to players can be delayed, but never to investors until you plan on leaving them dry. Future investors have no idea the expense as long as they get the return. Meaning you can take a future investors money to pay off your loss from the event and use some for profit.
If it impresses you instead of $ you can use a $K sign. And if your unhappy with the player profile you can use celebrity and for investor you can use friend.
How it works:
Three types of people are needed, investors, players and owner. All three expect to get paid, the returns they get paid vary. I like to use small numbers, but scaling up works too, beware of scaling up because gossip travels.
The sales pitches.
Get at least 20 investors to put up $5 in exchange they get a return of $10.
Get at least 10 players to pay an entry fee of $20 in exchange for a winner take all prize of $250 (it has to be more than the sum of entry fee).
The owner invests at least $100.
Investors bring in at least $100, players bring in $200 and the owner puts up $100. A total of $400.
To pay off the investors costs $200, to pay off the top prize costs $250 and the owner puts up(loses) $50.
The attraction expenses are left out because they are left out, by choice.
The owner can put on the show at loss of $50, but if he impresses clients, the owners return is future clients. Future clients can be used to make up for past losses. If on the next event, past investors were happy, they will spread the word to get more investors. In order to have the event pay for itself, you'd need 10 more investors, anymore than that is pure profit.
An owner makes money when future investors want to support an event. Payment to players can be delayed, but never to investors until you plan on leaving them dry. Future investors have no idea the expense as long as they get the return. Meaning you can take a future investors money to pay off your loss from the event and use some for profit.
If it impresses you instead of $ you can use a $K sign. And if your unhappy with the player profile you can use celebrity and for investor you can use friend.
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