Outsourcing has been changing the bookmaking business for many years now. Anyone can launch a sportsbook nowadays because the entire process can be outsourced to a PPH shop.
Pay-per-head (PPH) services provide a complete solution for operating a bookie.
PPH shops provide the software, reporting features, support, odds management and much more all for one low price. Bookies pay a single fee for each active bettor on a weekly basis. There are zero hidden upcharges and there are no commissions to pay on your profits.
The price per head varies, but is typically $10/head on average. You may pay less if you’re already established and have a number of active bettors already. You shouldn’t be paying much more.
Let’s consider the alternative to outsourcing your bookie business to a PPH shop. You would need to have in-house software or lease a solution, which isn’t going to be cheap. You’d also require a team to provide support, manage the betting lines and make sure your website is working.
The costs would be insane and it’s simply not feasible for a small-medium sized bookmaker. You’d spend more in development costs than you would ever make back in a reasonable time.
Benefits of Outsourcing as a Bookie Owner
There are numerous benefits other than the cost, which I’m going to discuss below.
- Finished Product: Thousands of bookies already utilize PPH services and therefore the end product is already fully developed and tested. If you want to quickly launch your bookie to start bringing in revenues there’s no faster way than by joining a pay per head service.
- Call Center: Bettors often only join bookies with live player support. The best PPH shops all have call centers operating 24/7 that your clients can use. Whether your clients want to place a bet or need assistance, all of this is provided by PPH shops with call centers.
- Odds Management: Managing the betting odds day-to-day is a full-time job. Unless you’re going to have in-house odds managers being paid a full-time salary, then the only way to ensure you have updated odds that are sharp is to utilize the odds provided by PPH shops.
Outsourcing is the new way to do business in the sportsbook industry. Trying to do everything on your own would not only be impossible without a huge team, but it’d cost a fortune.
Another benefit to utilizing a PPH shop is that you have more time to focus on other key aspects of your business, such as marketing. You need to be constantly bringing in new players to continue building your revenue as a bookie owner, so the more time you have to market, the better.
As your business grows, you can even start to outsource marketing and other tasks. The great thing about being a bookie owner is that once you’re successful you can outsource everything and retire on a beach while collecting the profits every week to live a great life in paradise.
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