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Using a point system is common, but is normally spanned out over a long period of time. It's best used when you play with the same people constantly, and points were given out accordingly.
You run tournaments for a certain amount of time, and whoever has the most points when it is all said and done takes down a big pot that everyone contributed to in the beginning. Also buy ins for each tournament are taken so that along with points won, people make money for placing.
It works.
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