Choosing the Right Pay Per Head Service

Not All Pay Per Head Services are the Same

Pay per head companies are to the sportsbook industry what Salesforce is to most every other industry in the United States. PPH provides tools required to run a successful sportsbook business.

But like in every industry, not all businesses within that industry are the same. Some are great at what they do. Others aren’t good at all at what they do. Bookies will find success with some pay per head companies. They won’t find success with other pay per head companies.

How does a bookmaker know which pay per head service will most help them?

Keep reading for an in-depth dive into what makes a great pay per head service. 

Most believe the significant change in the sportsbook industry happened when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act. The law gave Nevada the lone right to allow legal sports betting.

That is an important change. But for individual bookies, it’s not the most important change. The most important change happened a few years before. The change didn’t happen in the courts. It happened with technology.

Advances in sports betting technology allow bookies to run their sportsbooks the way much larger online sportsbooks run theirs.

Sportsbook software progression has led to greater entrepreneurship. Although this brand of entrepreneurship doesn’t rival Silicon Valley, it has allowed sportsbook operators to create thriving, growing, businesses.

It also created an off-shoot business: pay per head.

Pay per head companies provide the software, interfaces, and customer service required for bookies to thrive. With pay per head backing, bookies mustn’t worry about things like betting lines, client management, and most of the day-to-day it takes to run a sportsbook.

Why Go With a Pay Per Head Service?

Before getting into what bookies must look for in a pay per head company, we should define what pay per head means. Another word for “pay” is a fee. Another way to say per is to say “for each one”. The word “head” can mean all sorts of things. In this case, the word “head” means each customer or each client.

Pay per head companies charge a fee for each customer. Bookies who partner with a pay per head service pay a fee for each customer on that PPH business’s platform. For every customer, the cost paid per month could range from $10.99 to up to $13.

It depends on what the pay per head company charges for each customer. If you’re a bookie, you might have anxiety about the cost per month. It makes sense. Let’s say that you must pay $13 per month for pay per head services. Let’s say that you provide betting services to 30 clients.

The cost per month is $390 for my per head software. Is it worth it?

All companies spend money to make money. Bookies like you are no different. You must think about your investment cost compared to your return.

The $390 doesn’t mean much if by working with a per head company, you can increase your client base from 30 to 60.

Your outlay each month at 60 clients at $13 becomes $780. But, let’s say each one of your clients pays bookie fees on average $20 per month. We know that’s not true. Most sports bettors, even casual bettors, pay more than $20 per month on juice, or bookie fees. But, let’s say that’s the case. Here’s the math:

Outlay = $780

60 x $20 =  $1,200

Profit = $420

What if you don’t care about increasing your client base? As a local bookie, all you want is to free up time for yourself to pursue one of your passions. Maybe, you’re a burgeoning rock guitarist. Or, maybe, you want to have time to start a separate business with your spouse. Something that she’s passionate about.

The reason you wish to partner with a pay per head company is that you want more time. Here’s the math with 30 clients at $13 who pay $20 per month in bookie fees:

Outlay = $390

30 x $20 =  $600

Profit = $210

No matter how many clients you service, you can make a profit by using a pay per head service that offers a layoff account.

Layoff Account Path to Profits

What’s a layoff account? A layoff account allows bookmakers to “lay off”’ wagered money.

If a sports bettor wagers $100 on Team A to win, the bookie collects $10. The bookie can then wager on Team A in their layoff account. If Team A wins, the bookie offsets the player’s win. If Team A loses, the bookie offsets the layoff account wager. The $10 juice remains profit no matter the outcome.

The layoff account ensures profit. Not only does it ensure profit, but it’s a set of golden handcuffs for profit. With the layoff account, bookies can’t lose money because the fees are always profit.

There are ways to misuse the layoff account. The main way leaves profit on the table. But armed with a layoff account, sophisticated online bookies can make more money than they ever dreamed.

Even new sportsbook business owners make a profit from the layoff account. It’s so important that it rests at the top of the list on things to consider in a pay per head service. With the layoff account, any person can run a successful sportsbook.

Although the layoff account remains the most important thing to consider, it’s not the only thing. Sportsbook operators must consider other factors before signing on with a pay per head company.

Top 8 non-Layoff Account Things to Look For in a Pay Per Head Service  

1. Reputation

In business, your reputation defines you. It means everything. Local bookies understand this better than most. If a bookie develops a bad reputation, that bookie loses clients. When it comes to pay per head companies, reputation works on two levels.

The first is the PPH company’s reputation. The pay per head company must have shown that it has it’s clients’ best interests in mind. It’s offerings, as well as its management and customer service, must put its customers, you, at the front.

The per head company should also have a “partnership” reputation. A partnership reputation is one where both customer and seller work together. You are a PPH company’s customer. With the best pay per head companies, you’re more partner than a customer.

The second way a per head company’s reputation works is on the ground level. For you, the ground-level is your customers. Sports bettors can be a fickle bunch. They can decide to go with one sportsbook over the other based on the smallest thing.

The per head company you sign-up with front-faces your clients. Without players, a sportsbook operator has nothing to run. If you go with a company that has a bad reputation, a clunky sports betting interface, only a couple of ways for deposits, or a dark-age sports betting mentality, that reputation could lose you, customers.

2. Bookie Experience

Now that we understand the two-levels of reputation, we can move on to what exists below the two-levels. The first that bookmakers must consider is their experience. Some might argue that sports bettor’s experience means more. In a way, it does.

But, hear us out before making that determination. Your players do not run your business. No matter how much action, how many bets, you get each week it doesn’t matter if your business isn’t effective at certain things. Your business must be effective at:

1. Encouraging action

2. Protecting betting fees (juice)

3. Turning betting revenue (fees) into profit (take-home)

4. Ensuring customer satisfaction

We can add a fifth goal: growing the bookie business. The fifth goal isn’t necessary, though. Some local bookies can maintain a small business and make a profit every month.

You could do 1 and 2. If your pay per head partner doesn’t lead to 3 and 4, you won’t run a successful sportsbook. Your per head partner must help you do all 4 well to ensure success.

If your experience isn’t positive, how can you accomplish your goals? It won’t matter how many clients you service every month. Even if your clients’ experiences are great, if your experiences aren’t, you won’t make effective decisions.

3. Sportsbook Betting Interface

Without customers, a business is doomed. That’s the reason a pay per head’s sportsbook betting interface must satisfy your customers. Bookies who work with per head company’s that provide bad client experiences end up costing those bookmakers.

Signing up with the wrong pay per head company can lead to business failure. Ungraceful interfaces and heavy-handedness can cause sports bettors to search for alternatives. Ensure your clients don’t search for alternatives by partnering with a per head company that provides a great betting experience. 

4. Sportsbook Software Management Tools

Sportsbook software runs the betting interface. It also helps you manage your bookie business. In addition to the layoff account, your pay per head partner should offer:

Holding tool – This tool helps you define which sports provide the most profit. You can promote non-profitable sports. Or, you can try to promote the most profitable sports. Promoting both is another great option.

Line mover – Bookies must have a way to move existing betting lines. Bookmakers should move lines consistent with their business. Moving lines is tricky. Consider the following:

a) How will a line move affect the desired action?

b) Will the desired action lead to more profit?

Player management tools – Some customers might only wish to play in the online casino. Others won’t want the temptation of an online racebook. Others might want you to increase their betting limits. Still, others might want you to decrease their betting limits. You might also want to add bonuses to a player’s account.

You must manage player accounts. Player management tools allow you to do that.

The above is a sample of required sportsbook management tools. The best pay per head companies offer tools above and beyond what we wrote here. You should look for more sportsbook software tool offerings than just what’s listed.

5. Customer Service

What good are tools if nobody shows you how to use them? Excellent pay per head customer service goes further than answering your questions. Great customer service includes hand-holding and education. Customer service that teaches you how to use sportsbook software tools offers more value. Look to work with a pay per head company that takes customer service up a notch.      

6. Easy sports bettor deposits. Easy agent payments.

Cash must flow for businesses to find success. Bad cash flow leads to unsuccessful businesses. A bookie’s sportsbook business must also have great cash flow. If your clients can’t deposit with ease, they won’t play with you.

Without action, your business won’t succeed. Make sure that the pay per head company you partner with offers simple deposit methods. Ensure the per head company you go with has a great agent payment system.

You must make quick transactions. Players don’t like to wait to get paid. You must also pay yourself, your sportsbook business.

7. Security

We list security seventh. It could be number one. Your security and your players’ security should always be top-of-mind. If the pay per head company you’re considering can’t convince you that they’re secure, how can you convince your clients? Make sure top-notch security resides with whichever per head company you go with.

8. A Turn-Key Website

Are you a website developer? Websites aren’t produced from thin air. Not only that, but you must create a sportsbook website that competes with online sportsbooks. Those businesses have a team of developers. You don’t. Going with a PPH company that provides a turn-key website ensures you hit the ground running. If you already have a bookie business, it protects you from client desertions. A professional website assuages fears. Also, pay per head company offered sites should work well with their sportsbook software tools.

Not All Pay Per Head Services are the Same

Bookies mustn’t live in the past. The old days of bookmaking aren’t even old. They’re ancient. Bookies who wish to compete should partner with a pay per head service. Finding the right pay per head service can be difficult.

Online bookies like you should look for a pay per head service that helps you create a successful sportsbook business. Some of those things include sportsbook software management tools, a great sports betting interface, and a turn-key website.

A company that provides all of that and more is Pay Per Head. Contact a Pay Per Head representative at 800-605-4767 and sign-up today.

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