Building a betting base for your private bookmaking business is survival 101. Now it’s never been easier.
Flexibility to Grow at Your Pace
One of the best aspects of working with a pay per head site to build your own private sports bookmaking business is complete flexibility. You can even add a casino and racebook at no added cost!
While the basic online software solutions for booking sports bets are the same. How you choose to use those tools to shape your own business model is entirely up to you.
Some private bookies choose to work with a select group of high volume players. Risks tied to added exposure are often outweighed by a higher return, with lower overall business operational costs.
If you only worked with 10 customers averaging a $1000 dollar betting handle each week, a 10% hold on that volume would bring in $1000 in profit each week.
With the average weekly pay per head fee set at $10 per active head, the total cost of that plan would only be $100 a week.
Building a Betting Base of Your Choice
Some private bookies choose to build a large active betting base to reduce potential negative exposure.
However, overall costs are much higher.
If you had 100 active bettors averaging $100 a week in bets, that same 10% hold would produce the same $1000 weekly return. However, in this scenario, your weekly PPH cost jumps to $1000.
In reality, most private bookies build a business that works off a balanced mix of different customers. Having some high volume players in the fold has proven to be a boost to your overall bottom line.
You can also do without any recreational bettors that are barely covering your weekly $10 PPH service fee.
What is a Bookie’s Hold?
The most important business concept to keep in mind as a private bookmaking is building a healthy hold on the betting volume taken in.
A bookie’s hold is the difference between the money paid out on winning bets and the money collected on losing bets. You also have to add in the commission or juice charged to book that wager.
In a perfect world, your average hold should be close to 10% on your sports betting handle.
Pay per head business reports can easily calculate your handle and hold on that volume for any specific time frame.
That calculation is most helpful when you decide to settle each betting account. Some bookies opt to settle all accounts on a weekly basis. Others may push off settling to the end of each month.
PPH WILL Help Building a Betting Base
Once again, the right pay per head bookie service gives you the ability to run and manage your players anyway you choose. Building a betting base happens quickly with the right services.
You can match the commercial books and require cash up front for placing wagers in the absence of putting credit limits in place. You can also decide to extend a line of credit on an account-by-account basis.
Adjusting betting profiles is easily done through your PPH service. These specific limits can be monitored and controlled via the use of individual online betting account profiles.
No matter how many active bettors you decide to work with, these are some basic aspects of pay per head bookie solutions to keep in mind. First, you need to work with a PPH site that can fully automate all of your business processes while also operating that business completely online.
The best pay per head sites in today’s marketplace are based in Costa Rica as a highly favorable jurisdiction for the private bookmaking industry. The ability to move your bookie operation offshore is the best way to protect your individual financial interests.