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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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  • dude_abides7

    @Aurren said...

    Like Seth said, what the op has done isn’t necessarily against TOS. Even if he did refer himself and that’s not allowed, he can still prove his other referrals are still legitimate. If he feels really strongly, consult a consumer attorney in either Minnesota or New York. Both states should have consumer protection laws protecting consumers from “bait and switch” tactics. You won’t find any solutions here and it might end up hurting your case in the end. May the truth prevail.

    True…we don’t know what really is going on. But the OP disappeared like OJ at the crime scene once Seth presented his theory. I am pretty certain he is not a victim here.

  • travs424

    screwing people on sites referral programs is old news, they want you to recruit people you know and promise players they can make money doing it. I recruited with a partner 100’s of players to draftstreet. it worked great, he played large amounts of money with his commission money, I made 500-800 per month. then they gave him a job as recruiting manager. the 100’s of people I helped him recruit got me nothing. so I began recruiting on my own, recruited over 100 players on my own, DK buys out DS and now i have 3 recruits. these sites made millions on guys working hard to try to recruit new players to the sites to just try and and make a couple bucks and every chance they get they will try to get rid of the commissions. this industry was built on referrals, but I bet if you could check you would see that these sites pay out very little money to actual players.

    just a scam for the sites to get new fish

  • mealhouse

    If FD can prove he’s refereed himself that would violate the TOS and they’ed have no legal issue closing the entire account down. I’d actually think FD would have a stronger case to go after any $ they can prove he received through this breach in terms vs his ability to continue receiving $ for legitimate referrals.

  • sethayates

    @Aurren said...

    Like Seth said, what the op has done isn’t necessarily against TOS. Even if he did refer himself and that’s not allowed, he can still prove his other referrals are still legitimate. If he feels really strongly, consult a consumer attorney in either Minnesota or New York. Both states should have consumer protection laws protecting consumers from “bait and switch” tactics. You won’t find any solutions here and it might end up hurting your case in the end. May the truth prevail.

    Just FYI the FanDuel Terms of Service (TOS) have a Binding Arbitration clause. Item 15 of the TOS states that customers should contact FD Support either through email or at 917 525 4538. If a resolution cannot be reached within 30 days the customer should contact the American Arbritration Association (AAA) at 1 800 778 7879 or www.adr.org. There’s a bunch more information in the TOS for anyone who feels wronged. Arbitration is actually cheaper than a lawsuit anyways. If the arbitrator finds the case is “non-frivolous” FD will even pay the fees.

    Obviously, golfgalaxy would need to explain the issue of why they stopped playing on the golfgalaxy account and who is funding/using the anomoly account. Especially if the play was happening from golfgalaxy’s IP address. Those are the things the arbitrator would be interested in. It’s possible golfgalaxy could keep the other legitimate referrals but I have to assume any neutral arbitrator would rule that funds paid on behalf or the anomaly referral would first have to be recouped.

  • RustyNutz

    You all do realize that the referral program at DK was recently changed as well right? You have to hit a minimum number of referrals in a 6 month period or you drop to 20% from 35% and there is a cap on the amount of time your referrals last and you can no loner exceed $1,000 a month. Check your DK accounts and look for any referrals that are older than a year… I’ll wait… that’s right they’re gone. This whole system is a thing of the past and FanDuel is just the latest to start cracking down on theirs. I wouldn’t get to used to it for much longer as it will be a thing of the past (At least in the sense that we all know it now) very soon.

  • Aalbanese102089

    @RustyNutz said...

    You all do realize that the referral program at DK was recently changed as well right? You have to hit a minimum number of referrals in a 6 month period or you drop to 20% from 35% and there is a cap on the amount of time your referrals last and you can no loner exceed $1,000 a month. Check your DK accounts and look for any referrals that are older than a year… I’ll wait… that’s right they’re gone. This whole system is a thing of the past and FanDuel is just the latest to start cracking down on theirs. I wouldn’t get to used to it for much longer as it will be a thing of the past (At least in the sense that we all know it now) very soon.

    Not sure how this even relates. The OP was likely scamming and got caught and hasn’t posted anything since. He wasn’t talking about changes the referral system

  • RustyNutz

    Doesn’t matter he’s just another reason the system doesn’t work and the sites bleed money through it. Do you have any idea how much money some of these accounts generate? Even for people who are actively playing theirs unlike the OP. DK didn’t even announce it for the most part just changed their TOS and only a few people caught it. As for FanDuel they allowed accounts like his to exist for a long time because it brought in new players but now are starting to close these accounts. Will only be a matter of time before they overhaul the system as DK did and you will see more people crying about it on the forums as we move forward.

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