By Harley Wyatt – Pay Per Head Agent News
Whether you are new to using Pay Per Head Bookmaking service or have been a PPH client for years there are some truths about running your own sportsbook business that all bookies need to come back to. Here are 5 things to know about Pay Per Head Bookmaking to help ensure financial success year round.
- Bank Roll – you have to be liquid to play in this game. Nothing will destroy your business faster than not being able to pay your players when they win. It doesn’t matter if one of your players has gone AWAL and stiffed you for a couple Gs. Your other players who have been paying you every week when they lost will expect prompt payment on those weeks where they win. Don’t make excuses just pay them their money. Prompt payment of winnings demonstrates strength and security which will keep the players coming back week after week and build your reputation as a solid out when you want to expand your business.
- Betting Limits – The best bookies know where and when to limit the betting action of their players. Of course there are always exceptions but you can’t take unlimited action from all comers. A general rule of thumb is if you take $2K on a full game you take $1K on 1st and 2nd halfs and $500 on Quarters. Remember that it is better to increase limits later on for players who ask for it then to have to cut limits because you’re getting hammered on player props and live betting.
- Risk Management – This is an all purpose term that basically means KEEP AN EYE ON YOUR MONEY. Remember that this is not a gamble for you, it’s a business. If you manage your players and your risk of losing money to them you will consistently turn a profit. 2 classic mistakes that bookies make is 1) Thinking that a player who consistently wins over an extended period of time is “just lucky” and his luck will change. Don’t believe it, this business is based on math, not luck and there are professional gamblers out there who will take you to the cleaners. 2) Don’t let one player dictate your weekly profits. If you have 20 guys who give you 10K in action and 1 guy who gives you 10K all by himself you have to be careful. You are depending entirely on 1 player to lose money in order to make a profit. If 90% of your guys are on one side and your big whale is on the other the best you’ll ever do is break even.
- More Betting Options – Many new comers to PPH or Pay Per Head services are nervous about opening up betting options that they couldn’t provide in the past. You will have full access to all the wagering options of a Vegas sports book and you should use them. The bottom line again is the numbers game. The more a player bets the more opportunities you have to win. Volume is key in running a successful book. This extends to sports and wagers you might not even understand along with Casino and Horse Racing but don’t worry, it’s the Per Head companies job to take care of the bets while you count the money.
- Customize – There are many different Pay Per Head services available and they are not all created equal. When deciding which one to go with it is absolutely essential that you maintain full control of what your players can bet on. Don’t go with any service that tries to tell you that your settings are “all or nothing”, that you have to accept the way they offer and that’s it. Any good PPH service will allow you to control settings even down to individual players. 80% of your revenue will come from 20% of your players. If you want to give your big guns a little something extra like parlay options, special teasers or reduced juice you should be able to do so. A good Pay Per Head service will work for you, understanding that it’s your business and you’re in charge to earn you the most money.