The sports betting industry in the United States alone generates billions of dollars in revenue every year. As more and more individual states enter the industry with both land-based sportsbooks in casino and race track locations, along with online betting sites, the overall industry continues to expand. When you add in all the revenue generated from online sportsbooks catering to US bettors, you can see why booking sports bets can be a very lucrative business opportunity.
Breaking down the US sports betting industry, private bookmakers still account for more than half of the total market. Even with the recent proliferation of commercial sportsbooks backed by some of the biggest players in Las Vegas as well as an increasing number of offshore books operating online, more and more sports bettors continue to turn to private bookies to place their bets.
The driving force behind the tremendous growth in the private bookie segment of the sports betting industry are pay per head bookie software providers. Working with the right sports betting software provider can enable anyone to run and manage your own successful independent sportsbook.
What is a Pay Per Head Sportsbook?
Private bookies have been taking betting action on games for as long as sports have been played. Not that long ago, the primary tools of the trade needed to run your own book consisted of a small cash reserve, a phone and a handwritten betting ledger. Local bars, pool halls and social clubs were a bookies’ primary source for customers and football drew the most action.
With the advent of the Internet and computer technology dating back to the 1980’s, the seeds of change in the sports betting industry were first planted. Over the next 10 years, offshore sportsbooks began to use this new technology to reach a whole new sports betting market in countries such as the United States. Their business plan revolved around online access through the internet with the help of specially designed sports betting software.
These changes also gave birth to the Pay Per Head sports betting industry. The same software that the big online sportsbooks were using to expand their business was modified for private bookies looking to run an independent online sportsbook.
The actual term ‘pay per head’ simply pertains to a low, weekly fee that bookies pay for each of their active betting customers to gain continuous access to these complex software solutions. Since it would be cost prohibitive to try and develop software capable of handling the day-to-day administrative end of a bookie operation, partnering with a quality price per head shop to take care of this end of the business makes all the sense in the world.
Today’s highly sophisticated online sports betting software packages have been able to level the playing field for private bookies competing against the big players in the industry. The main reason why bookies still control the majority of the entire sports betting market is the higher level of customer service and attention to detail that the big books are still unable to match.
How to Start a Pay Per Head Sportsbook
The first step in starting any business is finding customers for the products or services you are able to provide. Without customers, all you really have is a great idea of how to make money. Once you have gathered together a handful of sports betting customers willing to use your services to bet on the games, it is then time to take your bookie business online with a pay per head software provider.
Finding the right price per head shop to handle the administrative end of your bookie business will be one of the most important decisions you will ever have to make. There are a wide array of choices that continue to expand each year. However, not all private bookie software solutions are created equal.
The weekly per head fee you pay for your active sports betting customers is actually a very small part of the equation. Whether you are just starting out as a private bookie or running a thriving independent sportsbook, the features and benefits associated with that per head fee should be your biggest concern. You need a sports betting software provider that fits your business model, not the other way around. You also need a PPH service that can help fuel the growth and expansion of your sportsbook. That expansion drives your bottom line.
Most of the best bookie software providers will offer a free trial that allows you to ‘test drive’ their business solutions package to make sure it is a good fit. You need online sports betting software that is easy to navigate for you as the booking agent as well as for your sports betting customers when it comes to their online betting account. You also need fast and easy access to a wide array of business reports that keep you way out in front of the daily betting action coming in.
Finding the right pay per head site may take some extra time and effort on your part, but an extensive search now will pay some major dividends down the road. Matching the right sports betting solutions package with your business needs both in the short term and over the long haul is the best way to get your sportsbook off to a strong start.
Once you have found the right PPH service to take your bookie business online, the next step is to get your current betting customers up and running as well. This is where the added level of customer service and attention to detail can really work in your favor. You have the ability to walk your customers through the whole process to ensure that they are more than comfortable placing wagers through their online betting account.
Working hand-in-hand with the customer support team at your price per head shop is a big part of this process. Your customer service representatives have been expertly trained to make things run as smooth as possible. They normally come from an online sports betting background, so they already know what it takes to be successful as a private bookie. This customer service team can be the silent business partner that every independent sportsbook needs to succeed.
Running and Managing a Successful Pay Per Head Sportsbook
You have a sports betting customer base. You have the right pay per head site covering the administrative end of the operation. Now it is time to put your sales and marketing skills to the test. The big online sportsbooks have very deep pockets when it comes to attracting sports bettors to their million-dollar websites. The best part of running your own independent sportsbook is the ability to pick and choose your betting customers.
Any marketing plan designed to grow and expand your customer base should be targeted towards bettors that fit into your business model. Some bookies are looking for casual recreational sports bettors that remain moderate and consistent in their overall betting habits. Other bookies want the high rollers placing big unit bets on a regular basis. You need to set your own level of risk verse reward when adding new customers to the fold. The goods news is that there are more than enough sports betting customers to go around, so building that base is not nearly as hard as it may seem.
One of the first steps in managing this customer base is the use of individual account profiles that collect data based on each person’s betting history. This is an integral part of your sports betting software package and the best way to always stay on top of things. These account profiles can also be used to set any betting or credit limits you wish to put in place. You can set the limits across your entire customer base or on an individual basis. Either way, this is an excellent tool to manage risk and avoid any unwanted negative exposure along the way.
Pay Per Head Sportsbook Summary
- The Pay Per Head Sportsbook business model offers low start-up costs
The barriers to entry into the sports betting industry are minimal. The pay per head business model offers a low, fixed cost to all the bookie software solutions needed to be successful. Other than a cash reserve to cover your anticipated daily and weekly betting activity, there are no other substantial resources needed to take your bookie business online. Managed growth will support any cash flow needs as well as bottom-line profit projections.
- The sports betting industry continues to grow at a rapid pace
Current supply and demand in the sports betting industry creates a lucrative business opportunity for private bookies looking to run and manage an independent sportsbook. The future outlook for this industry points towards continued growth.
- Pay Per Head bookie software solutions automate your business processes
Pay Per Head Sportsbooks utilize the necessary business software solutions to run and manage every aspect of a bookie operation. With fast and easy access to a wide array of betting lines and odds, a comprehensive business dashboard and a multitude of real-time analytics to aid business decisions, the pay per head sports betting software solutions package can be thought of as a turn-key bookie business in a box.