Building a Bookie’s Profit With Pay Per Head
A private bookie’s main concern at the end of the day is the money made on the bets booked. The total amount of money bet during a particular timeframe is a bookie’s handle. The money left after the winning bets have been paid is a bookie’s revenue.
Working with a quality pay per head site, there are easy ways to build your overall weekly handle while also increasing the revenue from those bets. Another very important aspect of a bookie’s financial picture is the overall hold percentage. This is the difference between the money paid out on winning bets and the money collected on losing bets plus commission.
The typical hold percentage at the big commercial sportsbooks is between five and 10 percent. Anything above 7.5 percent is a strong performance. Anything below 5 percent signals financial trouble.
Private bookies are basically dealing with the same hold percentage numbers based on a standard 10 percent commission. With such thin margins, you need a pay per head site to maximize those returns.
The best PPH sites can add a substantial amount of value to the bookie services they offer. This, in turn, minimizes the low weekly per head cost you actually pay for those services.
Adding Value to The Cost End
Another drain on profits are added costs. With the help of the right pay per head site, you can actually negate the cost of your plan. Advanced business analytics paint a real time picture of daily and weekly action coming in, player positions and settlement figures.
By paying closer attention to your bookie business performance, you can capitalize on money-making opportunities upfront as opposed to dealing with costly issues after the fact.
You can also set betting and credit limits up front on an account by account bases. This can be extremely helpful when expanding a betting base. You can cut off bad depts before they get to deep. You can also use a pay per head site’s layoff account to remove unwanted risk from some heavy volume action.
These are just a few ways you can manage money and added cost through pay per head software solutions. By always staying way out in front of the action coming in, you can maintain that necessary high level of control.
Adding Value to the Profit End
There is no doubt that the pay per head fees you pay are one of your biggest weekly costs. However, by working with the right bookie services provider, the added profit taken in more than minimizes the impact.
As a private bookie, you can hand pick the betting clientele you work with. However, having 10 customers betting $1000 a week is a much more profitable scenario than 100 customers betting $100 a week.
You can use you pay per head site to build your customer base while also building your handle per customer. The ideal situation would be a 100 customers betting $1000 a week. This would add up to $7500 per week in profit based on a 7.5 hold percentage. Take away $1000 in pay per head fees and you are still making a tidy profit for your efforts.
Pay per head betting solutions are designed to build a more profitable handle overall. This comes from an expanded sports betting board that raises your betting handle per account. Throw in other revenue streams such as horse betting and online casino gambling and your profit picture gets even brighter.