Your active betting base is the life blood of your private bookie business. Grouped as a whole, your net profit is derived from the weekly handle pulled in. With the help of a quality pay per head site, you have the proper tools to breakdown that base to gain a deeper understanding of your overall business performance.
One of the best aspects of running and managing your own bookmaking business is the ability to pick and choose your customer base. While there any number of ways to form your customer base, you should formulate a strategy that best meets your business needs.
Small Base Large Volume
One popular business model for building a profitable betting base revolves around a smaller number of active customers betting a larger amount of money each week. This does heighten the risk factor a bit if too many bettors are on one side of too much action. However, the higher overall handle should translate to higher net profit based on your average hold percentage.
High rollers are good for business over the long haul. The odds always remain in the house’s favor given the basic nature of sports betting. As long as you are not dealing with sharps, the average recreational bettor will lose more than they win. If that recreational bettor is also a high-volume player, this translates to more cash in your pocket.
Large Base Small Volume
One of the least desirable business models as a private bookie is a large customer base wagering small amounts of money each week. This will drive up the operational costs while providing a much smaller overall return per bettor.
For example, if you have recreational players wagering $100 a week or less, they will barely cover the average per head fee charged by your bookie services provider. Most private bookies are just looking for any active bettors when in the start-up phase of the business. However, you should always strive to add customers that can add to your bottom line.
Blended Base Blended Volume
The ideal betting base for any private bookie is diverse enough to generate a weekly handle and bottom-line profits that meet any set financial goals. The base needs to be large enough to support those goals. It also needs to have a solid mix of weekend warriors and action junkies.
By creating a proper mix of low and high volume bettors, you can better manage risk while guaranteeing a higher level of net profit over the course of the year.
Through the use of tactical business reports, you can breakdown your active betting base on an account by account basis. By developing a profit per customer profile covering each player’s betting history, you can gain a much deeper understanding of your entire bookie operation.
There is also added value in this exercise from an overall marketing standpoint. By fully understanding each customer’s betting strategy, habits and traits, you can tailor your betting board to meet everyone’s needs.
Expanding your weekly handle without necessarily expanding your active customer base is a viable business approach to improving your overall bottom line.
Breaking down your active betting base with the help of pay per head business analytics is a vital part of the planning process. This is the first step towards building a business that can exceed the financial goals you have set for yourself.