As membership numbers continue to decrease, and new members are few and far between, Dunk has to find new ways to keep the revenue stream alive. He does have to pay for his cider and steak, you know. So last summer he came up with a new idea how to squeeze a little bit more out of his already signed up members: The Championship Competition.
The idea of the competition is that you pay £5 and then get allocated a team from the League Championship. Last year they filled up 5 groups of 24 participants. The money goes back to those who have been allocated the winner(£50), the second place(varies depending on total amount payed), the playoff teams(£5), and the relegated teams. (£5, £10 for the last team). So far this looks OK. The money paid by the participants is going back to the winners, less the paypal charges, but that’s fair.
So how does Dunk make money from this, you may wonder. Well, there are three ways basically. First he’s got the money in his own account for a year, which means he’ll get some interest. That’s probably not much, but in Dunks case every penny counts. The second way to make money from this is the fact that lots of members are leaving the site, and Dunk know that these won’t claim their prizes. At least two of the 5 who won £50 are no longer KT members, plus a few who won smaller amounts. The third way Dunk is making money from this is that three are probably a few who renew their membership because they are in the run for the prizes or have won. It’s been more than a month since the league finished, but it seems noone has still got their money. In the regulations they have even stated that the prizes can be deducted from membership renewal. So if you were considering not renewing, having £5 or £10 deducted may just change your mind and make you stay for another year.
Now Dunk has started a new competition for the next season. Many of those who have won has asked for their prize money to count as entrance fee for the next round. So you see, the money stays in Dunks account. None of the £570 have left it so far. Will it ever?