By Ted Jolly – PPH Agent News –
When I first started working with agents in the Pay Per Head Gaming Industry many Bookmakers were making their first foray into moving the gambling potion of their business offshore. Back in those days competition between PPH shops was minimal. The weekly player rate was as high as $25 to $30 and some even charged as much as $50 per active player each week.
As the online search engines like Google started filling up with PPH, Price Per Head, Pay Per Head and White Label Gaming advertising prices started to drop. There were even attempts to “corner the market” by some of the larger PPH Shops by dropping their price so low they were actually losing money. This was the beginning of the PPH price wars and the various schemes that have been spawned from them.
Beware Of PPH Price Schemes
- Pay Per Head services that charge too much money for their service. If you get quoted prices over $15 per player per week you are paying too much. Technology has advanced to the point that it is unreasonable to pay more than $15 per player for basic service.
- PPH Offices that charge too little. The old adage “you get what you pay for” holds true in the PPH Business. Places that charge $5 per head or even lower will give you absolutely no support what-so-ever, you’re on your own. They won’t even offer phone service to agents. Your “urgent request” for help in managing your account may take up to 48-72 hours to get a response.
- Casino commissions. This one really oversteps the boundaries between Price Per Head Service provider and client. You didn’t sign up for a partner to freeload off your profits. Casino commissions on ONE player can cost you more than your entire package. Why should a PPH shop demand $1000 from you if your player blows $10K on Black Jack? This would also apply to commissions on your Sports Betting action or Horse Racing players. There is absolutely no justification for it.
- “Service Fees”. Some places will try to hit you up with a “minimum charge” or a periodic service fee for “website maintenance” or some other cooked up excuse to squeeze money from you. What you need to be aware of is that it costs nothing to have your player accounts sitting inactive on a database. Many agents will take a break during the summer when they don’t get any action. You shouldn’t have to pay for doing nothing.
- Added costs. This is something that frequently happens with low cost Pay Per Head companies that try to make up profits by charging you extra for things your players do. One common scheme works like this; You pay a base rate of $7, if your player makes a LIVE BET you are charged an additional $5, if they use the Call Center you are charged an additional $5 etc. You thought you were getting a straight forward $7 rate but at the end of the week you are charged up to $18 to $20 per player.
If you encounter any of these scenarios you should recognize them for what they are; greed, pure and simple. They are Pay Per Head Sports and Gaming providers who somehow feel entitled to stick their hands into their clients pockets and steal. If it’s happening to you it’s time to think about moving your business somewhere else.