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  • golfgalaxy

    Since July 2014 when I referred my first player to the Fanduel website the rakeback that was generated was a good source of income for me. My business has continued to grow with additions of a few very high volume players. In the last year I havent played much DFS just continued to refer players and since I had more then 5 players and more then 5k in revenue I was able to collect 35% of the rake that my players payed.

    On December 10th after not receiving my referral payments that month I inquired if payments had been paid out yet. I was informed that yes they had been and I would not be receiving any more payments via the referral system because my account was under investigation for “suspicious activity”. It took me 37 emails back and forth with Fanduel customer support, before they told me what I had done wrong. Here was their response.

    Thanks for following up. I’ll be happy to reiterate.
    FanDuel accounts are intended for gameplay, however your account’s sole purpose for almost one year has been to pull in large amounts of referral earnings and immediately withdraw those funds. Since our Accounts Team found you to be using the service in a way in which it is not intended, this was deemed suspicious activity. As a result, the account was suspended so that it can be further reviewed by our team.
    As per our Terms of Use, FanDuel, in its sole discretion, reserves the right to suspend an account where conduct is deemed improper and/or not used as intended.
    There is no timeframe on the suspension, so as of now you can consider it indefinite. FanDuel needs to further look into not only your particular case, but also the referral system as a whole to make sure that it is being used only in a manner that is in the true spirit of the game.
    I hope this helps provide some more clarity. If you have any further questions about this or how to proceed, please let me know.
    Best,

    So I brought Fanduel a lot of business via the referral program which is the exact purpose of them having a referral program and not only did they cut ties with me there, they also suspended my account. Ill copy below the Fanduel terms of service for referral and nowhere did I violate any of their rules. Reaching out to the RG community because I feel like I did nothing wrong and got very screwed.

    Terms and conditions

    The FanDuel Referral Program – The FanDuel referral program allows all FanDuel players to financially participate and benefit in the growth of the site by receiving commissions from players they refer to FanDuel.

    Eligibility – All registered FanDuel players are eligible for the Referral Program, except in cases where an account has been explicitly suspended from FanDuel or from participation in the referral program.

    Referrals – In order to be tracked, the referred player needs to have signed up after clicking on a referral link. A referral link can be provided by cut-and-pasting it from the Referral Center, via an email generated from the Referral Center, shared via Facebook or Twitter from the Referral Center, or via a system generated challenge link for a specific contest. If a player signs up without using your referral link, we will not be able to manually credit you for the referral.

    Additional Referral Rules – You will not receive credit for referring yourself, any member of your immediate family, or any member of your household. In addition, you will not receive credit for referring someone who already has an existing FanDuel account. Referrals determined not to follow these rules may have payments suspended at any time. Commissions earned from referred players which have not followed program rules may be retroactively removed from your account, and you may face suspension from the FanDuel referral program. If one of your referrals is deemed (through the use of a promocode or other tracking) to have been introduced to FanDuel via another source, we will not pay referral fees to you for that user.

    Commissions – Commissions will be earned based on the real money activity of players who have been credited to you as referrals. As long as The FanDuel Referral Program exists you will receive commissions for all credited referrals, subject to the Referral Rules stated above. Commissions will be based on Net Revenue Generated.

    Net Revenue Generated – Net revenue generated will be based on the portion of gross contest fees remaining after all costs that can be attributed to a specific player have been removed. In other words, the referred players’ share of contest entry fees minus contest prizes, with certain subtractions based on bonuses, cost of promotions, FDP spending and other transactional costs associated with the referred players’ accounts.

    Commission Thresholds – Commission will be paid at the following rates for each Net Revenue level each month. As each new higher rate is achieved, it will be applied only to dollars earned above that level. In other words, your commission on the first $1,000 of net revenue will be earned at a 20% commission rate, your commission on each dollar of net revenue from $1001-$1999 will be earned at a 25% rate, etc. You will only be able to achieve earning rates above 20% if you have referred a minimum of five players who are active in the month in which commissions are earned. If you have less than 5 active players in a given month, your commission is capped at 20% for that month. An active player is defined as one who entered at least one real money contest during the month.

    < 1000 —————- 20%
    $1000 – $1,999 ——- 25%
    $2000 – $4,999 ——————- 30%
    $5,000+ ——- 35%

    Payment – Payment will be made directly into your FanDuel account once per month, generally within ten days of the end of each month.

    Referral Center – The new Referral Center (accessible when logged into FanDuel.com) will provide extensive ability to invite your friends to play on FanDuel, to track your referrals and commissions, and to learn more about how to recruit new players. One point worth noting is that the breakdown by individual referral will show an estimate of the contribution to your total commission earned that each referral made each month. This estimate is based on player prizes won, and it’s done this way to preserve the confidential information on entry fees paid and profitability of each player.

    Retroactive Credits – Referrals will not be credited retroactively for those who made referrals prior to the introduction of the new program on March 14, 2012. Referrals made prior to that time were made under our older program, which awarded $10 in Pending Bonus into the accounts of the referring player and the referred player. However, if you made a referral under the old program between February 14, 2012 and March 13, 2012, you may notify us via a support ticket that you would like to transfer that referral to the new program. If you do so, we will make this change by subtracting the $10 in your pending bonus account. Your referred player will keep the $10 of Pending Bonus in his/her account, and their generated commissions will be tracked and awarded under the new program rules going forward.

    Referral Program Changes – FanDuel reserves the right to make changes to the referral program (including terminating the program entirely) in the future.

    Taxes – You are responsible for paying any sales, use or other taxes related to any commissions awarded to you in connection with the Referral Program. FanDuel reserves the right to withhold taxes from commissions, as appropriate.

    Marketing – All marketing activities conducted as part of your recruiting efforts for the FanDuel referral program must meet the following requirements:

    You are required to follow all applicable laws.
    You may not use any incentivized marketing that provides any your recruits financial incentives to sign up with you, beyond those that are standard parts of the FanDuel Referral Program.
    You are prohibited from engaging in spamming activities via email, facsimile, social media sites such as Facebook and Twitter, or any other means. Engaging in such activities may result (at FanDuel’s discretion) in non-payment of commissions.
    You may not recruit or use recruiting materials that in any way promote inappropriate content (such as that promoting violence, discrimination, or lewd or pornographic material) or that use deceptive, unethical or illegal means of soliciting referrals.
    You are not permitted to use any third-party trademarks in your recruiting activities.
    Do not use paid advertising to promote your referral link. If you want to become involved in paid promotion for the site please apply to join our affiliate program.

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  • einars

    @golfgalaxy said...

    The FanDuel Referral Program – The FanDuel referral program allows all FanDuel players to financially participate and benefit in the growth of the site by receiving commissions from players they refer to FanDuel.

    “all fanduel players”….. except you wernt a player and hadnt been for over a year. might be weak but seems like it is in their TOS. seems tickytack but could you check to see if you started playing then they might restore your referrals??

    the only reason i can think of that they require it to be players is that they offer different (better??) rates to players (vs business like RG, espn,radio and whatever you are running to get your referrals) because peer to peer referrals are going to be far fewer than business referrals.

    just my two cents, no idea if its correct

  • Aalbanese102089

    That’s pretty shady, I’d be pissed.

  • bruyns

    so if he played a $1 entry once a month they wouldn’t have cut him off? I don’t see how he did anything wrong either.

  • Galante118

    • Blogger of the Month

    That’s really shady. With everything going on, you’d think they wouldn’t do stuff like that. These sites don’t learn…absolutely amazing.

  • einars

    @bruyns said...

    so if he played a $1 entry once a month they wouldn’t have cut him off? I don’t see how he did anything wrong either.

    no clue, just trying to interpret their TOS for him. if they paid out referral $$ in FD fpps/fd $$ that would solve all their “issues”

  • sethayates

    Though they didn’t directly accuse you of it my guess is that they are accusing you of using your account exclusively as a rake back account. I’ve heard people mention trying to refer their own play. Obviously, you can’t get credit for referring yourself or a member of your household. That’d be my guess on what they think is suspicious. I can’t imagine them just shutting down an affiliate account because that affiliate doesn’t use the funds to play on the site. They don’t have a play-through requirement listed so that really can’t be it.

  • cjhopkins07

    @sethayates said...

    Though they didn’t directly accuse you of it my guess is that they are accusing you of using your account exclusively as a rake back account. I’ve heard people mention trying to refer their own play. Obviously, you can’t get credit for referring yourself or a member of your household. That’d be my guess on what they think is suspicious. I can’t imagine them just shutting down an affiliate account because that affiliate doesn’t use the funds to play on the site. They don’t have a play-through requirement listed so that really can’t be it.

    I’d agree that there may be more to their reasons which we can only speculate to. However the last part, if the account had zero actual “play” for an extended period of time then i could see that using the account solely as an affiliate account to collect and withdraw money could be seen as mis-use of a service designed for “Fanduel Players”. As if there is no play on the account for say, a year, are you really a player? As i said, total speculation.

  • sethayates

    @cjhopkins07 said...

    I’d agree that there may be more to their reasons which we can only speculate to. However the last part, if the account had zero actual “play” for an extended period of time then i could see that using the account solely as an affiliate account to collect and withdraw money could be seen as mis-use of a service designed for “Fanduel Players”. As if there is no play on the account for say, a year, are you really a player? As i said, total speculation.

    In that case, I would think they would email the player and convert them to an affiliate account.

  • bruyns

    Or have something that states you have to play X amount of games in order to collect referrals. OP obviously would have played a game a month if he knew that was needed to continue to collect his revenue.

  • SEAHAWK03

    golfgalaxy, look at the fantasydraft.com 6 Degrees of Pay. It is for people just like you wanting to build a business, with NO Qualifiers ( you dont have to play) and it costs nothing to sign up.

  • ScoLuns

    • Blogger of the Month

    @SEAHAWK03 said...

    golfgalaxy, look at the fantasydraft.com 6 Degrees of Pay. It is for people just like you wanting to build a business, with NO Qualifiers ( you dont have to play) and it costs nothing to sign up.

    Yep this. I get six levels of referrals, not just the person I introduce.

    I play ONLY on FantasyDraft. Games aren’t as big and you can’t hit a million dollar payout like FD, but I like it much better

  • tonytone1908

    I think the idea is is they want you to spend that referral money with them in the form of entry fees. I’m sure that’s how it’s intended. I mean, for many people I can’t imagine the referrals to ever be worth more than a few bucks a month. If your goal is to make money from referrals than I’m sure that’s what the affiliate program is for.

    I always assumed that’s why the ads all have different promo codes. Seemed like a MLM or at-home business sort of thing where I could buy the airtime myself to run these commercials and hope people sign up through them and I get the commission. I don’t think it’d be very profitable but if you happened to be the guy that signed up the next Maxdalury you’d be sitting pretty. I’m guessing that’s where the affiliate program part comes in?

  • golfgalaxy

    Double post

  • golfgalaxy

    @einars said...

    “all fanduel players”….. except you wernt a player and hadnt been for over a year. might be weak but seems like it is in their TOS. seems tickytack but could you check to see if you started playing then they might restore your referrals??

    the only reason i can think of that they require it to be players is that they offer different (better??) rates to players (vs business like RG, espn,radio and whatever you are running to get your referrals) because peer to peer referrals are going to be far fewer than business referrals.

    just my two cents, no idea if its correct

    I was a player a couple of years ago during NBA lost about $30,000

  • golfgalaxy

    @sethayates said...

    Though they didn’t directly accuse you of it my guess is that they are accusing you of using your account exclusively as a rake back account. I’ve heard people mention trying to refer their own play. Obviously, you can’t get credit for referring yourself or a member of your household. That’d be my guess on what they think is suspicious. I can’t imagine them just shutting down an affiliate account because that affiliate doesn’t use the funds to play on the site. They don’t have a play-through requirement listed so that really can’t be it.

    I asked this many times what suspicious activity I was doing, which took me 37 emails to get that answer.

  • golfgalaxy

    @tonytone1908 said...

    I think the idea is is they want you to spend that referral money with them in the form of entry fees. I’m sure that’s how it’s intended. I mean, for many people I can’t imagine the referrals to ever be worth more than a few bucks a month. If your goal is to make money from referrals than I’m sure that’s what the affiliate program is for.

    I always assumed that’s why the ads all have different promo codes. Seemed like a MLM or at-home business sort of thing where I could buy the airtime myself to run these commercials and hope people sign up through them and I get the commission. I don’t think it’d be very profitable but if you happened to be the guy that signed up the next Maxdalury you’d be sitting pretty. I’m guessing that’s where the affiliate program part comes in?

    I was making more per month then if I had just signed up Max

  • teddykgb

    @golfgalaxy said...

    I was making more per month then if I had just signed up Max

    Considering Max was quoted as playing 140k+ a day and assuming half of that is on FD with a conservative 10% rake, that equates to roughly 42K a month in affiliate kickbacks assuming a 20% cap with only one referral signed up .

    So you were making upwards of 42K a month off referrals? Impressive if true

  • JHols1nger

    @sethayates said...

    Though they didn’t directly accuse you of it my guess is that they are accusing you of using your account exclusively as a rake back account.

    “FanDuel accounts are intended for gameplay, however your account’s sole purpose for almost one year has been to pull in large amounts of referral earnings and immediately withdraw those funds.”

    That sounds like a direct accusation to me.

  • kdriskell311

    As much as I disagree with how they are handling this situation.. there TOS states,

    “Referral Program Changes – FanDuel reserves the right to make changes to the referral program (including terminating the program entirely) in the future.”

    That is very broad and your situation will probably fall in that category.

  • DaveNYC

    this is flat out shady and their affiliate manager needs to come on here and answer some questions. I am a very high volume affiliate marketer and this seems eerily similar to what happened to me in the late 90’s with online gambling & poker. I sent over a million $ in gameplay referrals to some well known sites back then and they refused to pay and cancelled my affiliate account for similar terms. real deal shady, you do not have to put back in your affiliate earnings. For 99% of things I promote as an affiliate, I don’t use personally.

    I inquired a while ago about setting up a seperate business account on a few of these DFS sites, solely for affiliate purposes, and got mixed answers. I have a ton of daily fantasy traffic and need to start monetizing it. I hope FD and DK reps can come on here and answer.

  • Putz

    Follow the $$. There is your amswer.

  • BobGrinder

    If they want people to play to be eligible for the referral program then they need to spell that out explicitly in the terms. IMO this is complete bullshit, are they going to tell you that had you played a single $1 game per month they would not have suspended your account? They are getting exactly what they wanted from the OP in referrals that generate income for them. Not the sharpest tools in the shed running these shows.

    @fanduel you want support from players, then stop screwing the people supporting you over.

  • JustDFSin

    Shady that they didn’t even warn him about not playing. I guess since you weren’t making them any more money in new referalls they no longer need you.

  • bobbyrogers46

    Fanduel, the Monsanto of the DFS.

  • deejones49

    Very greedy they should have sent him a email or something

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