Selling Action: How Staking Percentages and Markup Work

“I'm selling 10% at 1.2 markup” can fly over the head of someone new to poker. It can seem like complex math.

So, what is this number? It's the percentage of a player's stake sold with their markup. A common process in poker, especially among players that have proven to be successful in the past.

I'll explain below what selling a piece actually means and how players decide markup. Also, the formula, and the ROI math that tells you when a buyer profits and when they're overpaying.

All the numbers below are illustrative examples to show how the mechanics work. They are not investment advice or a promise of returns.

When you sell a percentage of your action in a tournament, you're selling a share of your result. Sell someone 10% of your action in a $1,000 event and they pay for that 10% up front. In return, they receive 10% of whatever you cash. If you win $5,000, they get $500. If you bust, they get nothing.

It's a risk backers take, and sharing the downside comes with it.

The player reduces how much of their own money is at risk and unlocks buy-ins that would otherwise be too big. The buyer gets a slice of a player's results without having to play the event themselves. It's a one-off, per-event deal: the buyer pays up front, and there's no ongoing debt between you afterward.

Here's where the one number that confuses everyone comes in. If a piece costs its face value, a winning player would be giving away their edge for free. The buyer would then own a slice of a profitable player at cost. So, markup comes in.

Markup is a premium over face value, quoted as a multiplier. At 1.2 markup, 10% of a $1,000 event doesn't cost $100, it costs $120. That extra $20 is the price of the player's skill edge, often determined by the player. A proven winner's action is worth more than face value because, on average, it makes money. Markup is how that expected value sells.

A multiplier of 1.0 means no markup (face value); 1.2 means a 20% premium; and so on.

The math is one line:

Price of a piece = (percentage × buy-in) × markup.

The percentage times the buy-in gives you the face value; the markup multiplies it. Two worked examples make it concrete.

Pricing a small piece. You're in a $1,000 event and sell 10% at 1.2 markup. Face value of 10% is $100, so the price is $100 × 1.2 = $120. Your buyer now owns 10% of your result. If you cash $5,000, they collect $500 that time.

Whether they come out ahead across many events depends on your true ROI versus that 1.2 markup.

The seller's economics. Now a $10,000 buy-in, and you sell 50% at 1.2 markup. Your buyers pay 50% × $10,000 × 1.2 = $6,000 for half your action. Of that, $5,000 is face value and $1,000 is markup premium you keep.

So your own at-risk cost to play a $10,000 event drops to $10,000 − $6,000 = $4,000, and you still keep 50% of the prize. Cash $100,000 and your buyers split $50,000 while you take $50,000 — netting roughly +$46,000 after the $4,000 you put in.

Markup allows you to cut your variance and bank a premium for your edge at the same time.

Markup anchors to a player's return on investment.

The break-even markup for a buyer is 1 + the player's ROI (as a decimal). A player who truly makes a 30% return on their buy-ins has action worth 1.30. At exactly that price, the buyer breaks even in the long run.

The buyer's expected return is:

Buyer's return = (1 + player's ROI) ÷ markup − 1.

Run a 30% ROI player through three prices and it's obvious where the line is:

• Sold at 1.15 → 1.30 ÷ 1.15 − 1 = +13%. A good buy — the buyer keeps part of the edge.

• Sold at 1.30 → 1.30 ÷ 1.30 − 1 = 0%. The buyer breaks even, with little reason to buy rather than play themselves.

• Sold at 1.45 → 1.30 ÷ 1.45 − 1 = −10%. The buyer loses money long-term.

We can see above a buyer profits only when the markup is below 1 + the player's real ROI. Sellers who want repeat buyers price below their full-ROI number, leaving some edge on the table as an incentive. A common rule of thumb is to charge around 1 + half your ROI (a 20% ROI player asking roughly 1.10 rather than the full 1.20). Treat that as negotiation guidance, not a fixed law.

For context, most action trades somewhere in the 1.05 to 1.30 range. Unproven players sell at around 1.0 with no markup, because there's no demonstrated edge to price. Established stars command around 1.2 to 1.3 (sometimes higher but this is less common).

The judgement around the maths is where you can make or lose money.

The markup trap. Paying above 1 + the player's real ROI is a negative-expectation buy, full stop. Be careful when considering higher markups and decide if it's worth it in the long run. Always check the price against a realistic ROI before you send money.

ROI needs a sample. A player's ROI is only as trustworthy as the number of events behind it. A hot run over a small sample can flatter a mediocre player into a premium markup they can't back up. Before you buy, look at the volume behind the results, not only the headline return.

Small edges deserve small markup. Markup should reflect a real, proven edge. In a soft spot or a near-coinflip field, high markup doesn't make sense. The player isn't bringing enough edge to price it so.

Honesty is the ethical line. Sellers should represent their results and sample accurately. Inflating ROI to justify a fatter markup is where selling action can be shady. It's advisable to keep clean records of who owns what, pay out promptly, and remember that official payouts are what any tax reporting follows.

Selling pieces with markup is one of three common arrangements.

• Selling pieces (with markup): one-off, per-event, buyer pays up front, no ongoing debt.

• Full staking with makeup: a backer funds a player over time, and player losses accumulate as "makeup" that must clear before any profit splits.

• Swaps: two players trade equal percentages of each other purely to cut variance. It's usually with no money changing hands up front.

The makeup and swap mechanics are covered in our companion piece on what happens to a poker payday. Worth reading alongside this if you want the full picture of how cash is divided.