Rakeback is how poker rooms make money. In poker, the cash pot is only for the players. The online poker rooms take around 5-10% of the pot as a ‘rake’. It’s advisable that you take the rake fee into consideration when choosing a poker room. Although small in amount, the rake can quickly add-up. Rakes differ, depending on whether you are playing a cash game or a tournament. 
In cash games, a cap is usually placed on the rake taken out of each hand and it varies based on the stakes played. As a rule of thumb, the maximum rake should be around 3.00 at an online room and 5.00 for a live poker room. In tournaments, the rake is taken as an entry fee. Fees can vary between online and live tournaments. Tournaments online usually rake 5-10% of the buy-in. The live tournament can be 10-25% of the buy-in. The amount of the rake is usually shown next to the buy in, e.g. 10.00+1.00 means a 10.00 entry fee and a 1.00 rake. Remember, the rake will reduce the money you get to keep from each pot that you win. By signing up to a rakeback with a poker room you can get a large percentage of poker rakeback as a cash back bonus and decrease the value of the rake being paid out on each hand. Other factors are important when considering the rake value. Paying a lower rake, but not being able to generate any volume can adversely affect your winnings. The balance between high traffic and quality is to be given a serious consideration, along with the type of poker game e.g. PLO, or Hold’Em, types of hands, ‘short’ vs. ‘full ring’. Grind plans, playing multiple tables, and software inequality, all affect the level of rakeback cash back.
