The concept of Pay Per Head or Price Per Head (PPH) can seem very complicated to some people at first. Basically, the concept of Price Per Head is having an onshore bookmaker supply his clientele with the services of a post-up offshore sportsbook completely anonymously by using an internet-based automated system.
When a bookmaker joins an online Price Per Head company, he is able to contend with the major offshore sportsbooks, providing 24-hour betting every single day. The job of a bookmaker using a PPH company is to use the company’s online system to assign clients with a password and PIN, and to pay a modest weekly fee to the company for providing the service. Thus, for only a small fee, the bookmaker is able to compete with the world’s largest sportsbooks and even stop answering telephone calls for wagers without owning a call center, because the Pay Per Head company can provide these services for him at a much lower rate than he could have found by himself.
Once involved with the PPH service, a bookie might question the most effective way to manage his career on a daily basis. Instead of taking bets himself, the bookmaker will now send his players to a website to do their betting online, or to call the PPH company’s call center. His customers will find betting very easy since they now have 24/7access to a countless wagering selection, client services, technical support, and the call center.
The betting options are not limited to sportsbooks, but also include horseracing and access to live casinos, if the bookmaker chooses to offer these services. Once a week, the bookie will visit the Pay Per Head company’s website to download a report that will tell him whether to pay or collect each of his customers.
Because of its ease of use, the Price Per Head concept has quickly been growing in popularity. By using PPH software to outsource their business, a bookie can get provide much more to his clients in a much shorter time than he would have been able to working independently. All it takes is for the bookmaker to direct his clientele to the website or phone number which lets them place bets with their password and PIN. The clients and the Price Per Head service do most of the work, leaving the bookie only to do the job of checking his weekly report and paying or collecting accordingly. All it takes is a simple, small fee paid by the bookmaker for each of his customers that places a bet that week.
Since the bookmaker doesn’t have to track plays or answer calls anymore, he can spend more time finding new clients instead of writing bets. Many people wrongly assume that beating the clients they already have is the trick to making a lot of money as a bookie. While you can definitely make money this way, it is more effective to find many new clients who will make new wagers. The game is on the bookie’s side, so as long as you can find new clients, the money will come in. The real advantage to using a PPH service is that the bookmaker will now be able to devote almost all of his time to finding these new clients.
Using a Price Per Head service is very different from the old revenue-splitting method of providing offshore betting in which the agent splits winnings or losses with the offshore sportsbook. The benefits of using a PPH agency are numerous, including a greater earning potential for the bookie, better service for the clientele, improved client-recruiting capability, and much more. Although there seems to be a lot of debate over whether the PPH method is really better than the old way, looking at the facts makes it clear that PPH simply offers a greater earning potential for the same amount of work.
Despite what the credit sportsbooks might suggest, using a Price Per Head agency is really the best way for a bookmaker to make money. The method he uses really makes a difference. A credit sportsbook takes half of any bet. What this means is that if the player wins, the agency will absorb half of the loss (with the bookie absorbing the other half), and if he loses, the agency will take half of the winnings, leaving the other half for the bookie.
For example, if a bookie has a client that loses $5000 in one week, there are two very different scenarios: if he is using a PPH company, all he will have to pay is the small service fee; alternatively, if he is using the revenue-splitting method, he is required to pay $2500 of his winnings to the other party. So, even when he wins, he is really losing half of his earnings. The reason credit sportsbooks that practice revenue-splitting are so against it is that if their bookies use a PPH service, they will not be able to get that $2500 of winnings.
The only time the revenue-split model can be appropriate is if the bookmaker is in the practice of booking more than he can really afford. In this case, although the bookie has to fork over half of the money if his client loses his bet, he is also insured for half of the bet if the client wins. So, if the bookmaker is a real risk-taker, a credit sportsbook might seem like the better choice. However, it is simple foolishness to book more than you can afford to pay. It can often end up in your favor, but eventually this method will stop working, and you will owe a lot of people a lot of money that you simply can’t pay.
With the Price Per Head market growing so quickly, it may be hard to decide which company to use. Some important things to look at when deciding on a company include: the number of years it has been in business, the licensing and legality of its location, its reputation, the offerings and services it provides, and its security of the information you provide. When a company has a checkmark beside each of those requirements, you can trust that they will provide you with a great way to maximize your earning potential. As a bookie, using a Pay Per Head service will ensure that you make as much money as you possibly can.
