What is commission?
When placing bets at the exchange commission is paid on winnings, the amount varies but is normally between 2-5%.
Why should I reduce commission?
This 2-5% commission significantly eats into our profits so anything we can do to reduce it helps our bottomline.
How can I reduce commission?
1. Use a different exchange
The easiest way to reduce commission is to use an exchange like Smarkets where possible, they offer 2% commission rather than Betfairs standard 5%, on a £200 bet with a 2/2.1 odds this saves £10 of commission. With Matched Betting you will be placing thousands of pounds of bets so this soon adds up.
Instead of laying at the exchange another way of reducing commission is to avoid paying it altogether by placing all your bets at bookies rather than at the exchange. Covering all the outcomes with Back bets at different bookies is referred to as Dutching. This is a great option but only really viable on the 1X2 Market. For more information on Dutching check out our guide.
3. Combined Commission
The third way of reducing commission payments is by combining commission on multiple bets on the same market. This is particularly effective when betting at high odds and on markets with lots of possible results (like correct score markets).
By taking advantage of combined commission we can reduce and sometimes remove the commission payment.
If you lay multiple bets at the exchange on the same market they could all win, if that does happen then commission is paid in the normal way. If however one of the bets wins at the bookie and loses at the exchange you are in a position of having win(s) and a loss at the exchange.
Commission at the exchange is only paid on net winnings i.e. Winnings – Losses.
If you’re losses exceed your winnings on a market then you have a net loss and don’t pay any commission.
This can be done on any market, but my personal preference is the Correct score market, it generally has lots of odds in the 7-20 range so is ideal for SNR bets.
If you have multiple SNR bets that need placing you should look at the Correct score market for a match and consider placing each one on a different correct score. If any of the back bets wins at the bookie you will avoid paying commission on any of the winnings at the exchange, saving on average £2.50 per £50 bet
What markets can I combine commission on?
You can get combined commission on any markets, it’s not unusual for us to have multiple lay bets on a 1×2 market when we’ve bet on for instance home at one bookie and draw at another. If the result sis Home or Draw we can often avoid paying commission as exchange losses are greater than exchange winnings.
This technique can be used at any exchange, so can be combined with using Smarkets 2% commission for optimum commission savings.
What are the other benefits of placing multiple bets on 1 market?
This approach can also significantly help cash flow, check out our combined liquidity article for more deta
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