What Is Pay Per Head (PPH)?
PPH websites facilitate the technical side of bookmaking for independent bookies by providing numerous sports betting options each day. The service lets players bet online all-day and comes with technical support, a call center, and other tools.
Modern bookmaking agents leverage PPH software to make their operations more efficient. They simply log in to the website to check, pay, and collect. What’s more? Bookies are charged a weekly fee, but only for the active players.
Outside of the weekly fee that the agent pays, no betting money goes through PPH. The financial transactions between the two parties remain offline. Since local independent bookies let players bet with credit, the per head service simply acts as a convenience.
Arguably these money management software providers for bookies are changing the negative stigma surrounding their customers. The technology of PPH lends sophistication to their modus operandi. Bookies can let their customers bet at any time of the day. They can conduct business on their own white-labeled website and avail a 24 x 7 call center service at a fixed fee from these PPH websites.
Further bookmakers no longer need to hang out in bars to find new clients. They can hire marketing and sales departments to run social media marketing campaigns, start their own blog, build an email list, and experiment with numerous other client acquisition strategies. Once players are onboard, bookies can deepen their relationships with them.
They need to manage their books and balance wagers on each team so that they earn a decent commission on every event. The understanding of the motivations and financial goals of every player is facilitated through the organizing capabilities inside PPH software. That’s loosely like the job of a stockbroker.
But the process of settling up (with the occasional threatening) remains complicated and locally conducted. So as long as gambling remains illegal and people try to evade paying, the stigma surrounding bookies won’t vanish. But the sportsbook and gaming industry are opening up with companies like Realbookies.com reporting a 30% growth rate of the female demographic in a year.
Perhaps it’s more apt to say that the best per-head services are attracting demographics beyond the stereotypical gangsters in Goodfellas.
How Does Pay Per Head Work?
It works by the business owner (the bookmaker) paying the software provider a small fee per head for each active user. This ensures the bookie will only pay for people that are actively using the sportsbook software.
The best part about doing things this way is that everything can be scaled quickly and simply. Whether you have just a couple of customers, or a thousands. You’re only responsible for collecting payments, paying out winnings, and increasing your clientele base.
Most PPH Providers supply a white label turnkey solution, meaning online bookies can have their businesses running in minutes, all branded and ready to put in front of your customers. From there, you’ll never need to worry about the small things, again.