A Definitive Guide on What is Pay Per Head

Anyone connected to the sports betting industry in general has probably come across the term pay per head. On the surface, this can appear to be complicated and somewhat confusing. In reality, the term refers to a set business model for fully automating a private bookie business while operating it online.

What is Pay Per Head?

An easy definition is the idea of a onshore bookmaker providing their sports betting services to a specific betting cliental. This is done with the help of a post-up offshore online sportsbook or bookie services software provider.

The pay per head provider plays an anonymous role as far as providing this internet-based automated sports betting software system.

By aligning a private bookmaking operation to a pay per head site, that bookie now has the ability to compete against the big commercial offshore sportsbooks operating their own online sports betting platform. This service keeps a private bookie up and running 24 hours a day, every day of the year.

The pay per head business model collects a modest weekly fee for every active bettor tied to the private bookie service. This differs dramatically from a credit bookie services vendor that works off a revenue-split business model. Pay per head sites only charge one small user fee regardless of betting volume or weekly wins and losses.

Pay per head betting customers are assigned a username and password to access the online betting portal. Along with their online betting account, they will also have easy access to the pay per head site’s in-house customer service team. This facilitates the process of placing sports wagers through a toll-free phone system.

Advantages of Pay Per Head

The advantage of automating a private bookie business while operating that business online are rather obvious in today’s rapidly changing and evolving sports betting industry. The internet first made betting on sports online possible. 

Over the past two decades plus, the top-rated pay per head sites have expanded this business model into other verticals for online gaming. 

PPH services offer software solutions to run an online racebook for betting on horses and an online casino to play Las Vegas-style casino slots and table games. In turn, private bookie services have evolved into full-service online gambling sites.

Pay per head solutions provide a comprehensive system that gives independent bookmakers the ability to use the most effective business tools to run and manage that business on an ongoing basis.

Their betting cliental still benefit from a private bookmaker’s higher level of customer service and personal attention to detail. They also benefit from easy access and navigation through an online sports betting website.

Sports bets placed online now account for the majority of the industry’s weekly betting handle. The same thing is true for private bookmakers working with a pay per head service. Expanded betting options for horse racing and casino games are also available 24/7 every day of the year.

At the end of each week, business reports accessed through the backend of the PPH software package can produce real time settlement reports. This clearly notes a sports bettors overall balance. 

The bookie agent has the proper business report to know which betting customers are owned a payment and which ones owe money to the book. The difference between the two figures is referred to as a bookie’s hold. An average hold percentage should fall between 5% and 10% on a weekly basis.

Any hold lower that 5% needs to be adjusted. Any hold above 10% can be considered a highly successful week.

There are a number of ways to pay your weekly per head fees such as credit cards and pre-paid debit cards. One of the fastest, easiest and safest way to pay is through the use of cryptocurrencies such as Bitcoin.

Customized Pay Per Head Business Services

While there are many similarities across pay per head software solutions, there is still an element of customization that can be built into any pay per head plan.

Bookies can work directly with an in-house IT staff that can customize any general sports betting website skin. They can also opt to upgrade their online business presence with an online betting website that is built and maintained to certain specifications.

Given a pay per head site’s built-in economies of scale, its IT staff can customize a bookie business website at a far lower cost than any outside source.

Other customized business services include a bookmaker’s daily and weekly betting board. You will always have complete control over the betting lines, odds and options offered on your board.

Pay per head providers take a two-prong approach to providing fast and sharp betting lines. In-house sports betting experts work directly with external oddsmaking services. The result is easy access to a wide variety of betting lines and options that can meet and exceed all of your betting customers’ needs.

The use of customized business services will also free up your time to concentrate of other vital aspects of the business. PPH software solutions handle the day-to-day operations through reliable and safe online service.

They also take care of the administrative end of the business through the use of detailed business reports. By taking all of the guess work out of the daily decision-making process, you can add a much higher level of professionalism to your entire bookie operation.

You can also devote most of your time towards growing and expanding an active betting cliental. Bookie agents have the luxury of creating their own betting base. PPH services make it easier to find the right type of sports bettor for your specific business model.

Some private bookies are only looking for high-volume bettors to build their business around. Others turn to a larger number of recreational sports bettors as a risk management solution.

Whichever business model you decide to employ when building your customer base, your PPH service offers the proper business tools to aid the overall process.

Basic Pay Per Head Business Principles

Certain principles of the bookmaking industry never change. Certain weeks, the bettors win. In most other weeks, the bookies come out on top. Running and managing a successful private bookie business comes down to consistency over the long haul.

The cards are always going to be in your favor as part of the built-in house edge. Your goal is to maintain a steady hold that can help you reach any financial goals you have set for yourself.

A pay per head bookie service understands that its key to long-term financial success is directly tied to the ongoing success of the bookie agents they serve. 

That is why many of the business tools that are part of the weekly plan are tied to improved profitability. One business principle that raises profitability is the concept of increasing your weekly handle and hold without having to necessarily increase your active betting base.

By taking full advantage of your pay per head’s various revenue streams, you can enhance your bottom-line profitability on a regular basis.