When it comes to analysing tipsters, I like to think the SBC review process is very detailed – pulling apart all facets of a service to really get to the truth of whether they make a genuine profit or not
Normally the talking points we uncover focus on topics like a tipster with an efficient staking plan, ability to profit at Betfair SP or even something like the fact they make more backing a horse to win rather than playing it safe each-way.
Yet, in SBC Issue #113 we came across a very rare occurrence – a tipster quoting a completely incorrect Return on Investment (ROI) figure.
It was a major difference too as our figures showed the correct ROI of 13.66% vs their own 21.04%. A difference of 7.38% ROI!
For those of you unfamiliar with ROI, it is a simple calculation that divides the profit you have made by your stake.
So, for example, if you placed a £100 bet and won £10, you would have a 10% ROI (this is 100 divided by 10).
ROI is therefore a handy calculation as it puts your profit into context. Anyone can quote a high profit figure, but if you had to stake a lot to make it, then it is less impressive.
Why were we the first to uncover this?
Naturally the first port of call once we discovered the error was to put it to the tipster themselves, who agreed with our findings and have since changed their website to reflect the correct figures. Changing their claimed ROI on site from 21% down to 13% in line with what we uncovered and what was accurate.
Why this error took place is a bit of a mystery as no explanation was forthcoming.
Perhaps it was based on a simple miscalculation or misunderstanding of how to calculate ROI?
Whatever the reason, this was a major blackmark in terms of our ratings for this service, especially as trust is hard won and easily lost in the tipster world, so they have plenty to do to convince us this was a genuine mistake.
The very strange thing about this particular tipster is the fact that prior to their SBC review in Issue 113, they had been analysed by several other review sites, yet none of them had noticed this ROI error.
In fact, a couple of online reviews were still quoting the totally incorrect figure of 21% ROI and seem to have simply copied and pasted what the tipster had told them, without checking this for themselves.
Because if they had taken just 2 minutes to check the results, they would have quickly realised the figures they had were completely wrong.
If it’s free – you are the product!
All of this leads me onto my next point in advising caution with some free tipster reviews you might find online.
As most of us know these days – when something is free to access – it means you are the product in some way.
We see it with ‘free tips’ sites like the Racing Post owned – Myracing.com or Freesupertips.com, who although they supply tips for free (not very good ones either), they make money when you click their bookmaker adverts.
When it comes to tipster reviews, there is no such thing as a free lunch either as they use affiliate links which reward the reviewer should you join the service they are featuring.
Some affiliate programs pay out 50% of the tipster fee to the reviewer and do so on a recurring basis, so the money that can be made is substantial every month.
One high profile tipster with plenty of reviews online currently charges £59 a month and pays out 50% to affiliates, which works out as £29.50 per sale per month.
Even if you referred just 25 people, that would make you £737.50 per month.
Increase that to 50 customers and that is £1,475 per month and often for sending just one email or writing one review.
And if you are so lazy you can’t even be bothered to write a review, you can also get pre-written content to simply copy and paste.
It is why you might often see the same content on different sites when it comes to tipsters.
Or why you are seeing them quoting the incorrect ROI on the tipster I mentioned at the start of this article.
Buyer beware with affiliate reviews
Of course, not all free sites are bad or work in an unethical way, but it’s always worth asking why the information they provide is supplied without charge.
Whether its free tips, reviews or anything else for that matter – if they are investing time and resources into a free website, how exactly are they making money?
If its affiliate reviews, it’s also worth asking – how does the incentive of needing people to join the tipsters they feature impact the independence of their reviews?
Because if you don’t join them, they don’t get paid!
Whatever course you take, it pays to be aware of how the industry works as per free tips and tipster reviews. Buyer beware!
SBC’s different approach…
If tipsters’ interest you, then you can read our detailed reviews on hundreds of them with a Smart Betting Club membership, which includes access to a 13 year back catalogue and our ‘Hall of Fame’ ratings.
The Smart Betting Club is also proud to be 100% independent, which ensures we use no affiliate links nor accept bungs or favours in exchange for writing positive reviews.
Rather than take a cut or a percentage of any sales to the tipsters we review, instead the Smart Betting Club service is funded by subscription fees to our service.
Thus, providing you with full confidence that when we review a tipster positively, it is based on a genuine appreciation of their service and NOT because the tipster has paid us to say something positive.
It is a fully transparent model so as a member you know our reviews and recommendations are always 100% genuine.
So, by joining the Smart Betting Club, you help to contribute to our continued independent stance and enable us to review more tipsters on your behalf.
Smart Betting Club Owner and Founder