Why are you starting a sportsbook? One reason might be because you love sports and want to be able to spend all day watching them, but the main reason is because you want to make money.
Making money out of pay per head (PPH) is simple.
How to Make Money as a PPH Bookie
When you join a PPH service like Payperhead247, you pay a fee for each active bettor per week. This is commonly known as the price per head ($/head). Most services start out costing $10/head.
This means you’ll pay $10 weekly for every player that makes at least one wager.
So, to make money as a PPH bookie, you need your players to lose more than $10/week on average.
Obviously, some weeks are going to be better than others and some weeks you’ll lose money, but you need to make sure that the players you onboard are going to make you money.
For the most part, the majority of bettors will make you money. Even a player wagering $50/game is worth keeping, especially if they’re active (10+ bets per week).
However, not every player is going to make you money as a PPH bookie. You don’t want a player that bets small ($1-$10) parlays once or twice a week. Even if this player loses, you’re not going to make money. This is why it’s important to vet players before signing them up to your bookie.
Your objective is to increase the profit per head as much as possible.
How PPH Services Help Increase the Profit Per Head
PPH services provide bookies with lots of ways to increase the profit per head figures. Before you do check out the top providers here
- Increase Turnover: PPH shops provide hundreds of betting markets on sports leagues from around the world. Make sure your clients know about the wealth of betting options. You’d be surprised how many people will bet on random international matches if they know they can.
- Casino Players: Market the per head online casino as much as you can. If even a small percentage of your clients start gambling on the casino games, you’re going to increase profits.
- Improve Hold Percentage: Utilize the reporting features and other player management tools to help you improve the overall hold percentage. You should have a minimum hold of 5%, but your goal should always be to shoot for a hold percentage of 10%.
Apart from providing bookies with the technology and knowledge to operate a pay per head, the #1 thing a PPH service does is provide bookmakers with more time to build relationships and market.
The more players you sign-up, the more money you’re going to make.
Making money as a pay per head comes down to simple math and risk management.
Let the data and the numbers do the talking. Study the data religiously. The numbers will guide you as a bookie. Make sure you try to build loyalty among your losing clients. You don’t want them going elsewhere. However, don’t be afraid to restrict/limit bettors who are beating you with sharp plays.