Owning and managing an online sportsbook requires a lot of skills and resources – and managing your expenses can be quite challenging. Like with any business, you will want to make sure that you are running a full-scale business offering the best products and services. But you also want to keep your expenses as low as possible. This helps you generate a net profit easily, as opposed to having high operational costs. Today, we will explain how a bookie can save money with a pay per head sportsbook.
But first, let us answer the question many of you are asking now: what is a bookie pay per head? A bookie pay per head service is a comprehensive solution that provides you with everything you need to create and manage an online sportsbook. It is called pay per head because the cost of using this service depends on how many players you have in your sportsbook.
How Much a Pay Per Head Sportsbook Costs
Aptly called a pay per head service, the provider offers you full use of their software for a weekly fee. The cost ranges from as low as $1 to around $30 per head, depending on the provider. Some will offer extra bookie services for an additional fee. But some, like our Pay Per Head Bookie service, offer everything at a set fee with no other charges.
For example, we offer you our services for $5 per head. Let us say you have 50 players in your sportsbook. Now, for that specific week, only 45 players placed a bet. We will take that 45, multiply it with $5, and the $225 is the total cost of your operating expenses for that week. If in the following week, all players place wagers, then the fee for it is $250. So you only get charged for active players.
How A Bookie Can Save Money with a Pay Per Head Sportsbook
This helps you save a lot of money, because the alternative to this is to build a team to develop your bookie software. It also means you need a team to create your sportsbook, and hire oddsmakers to constantly create and adjust betting lines. This can easily cost thousands each month.
Besides, when you use a good PPH software, you benefit from the expertise of the software provider’s team. They have experience in managing sportsbook operations and are well-versed in odds management, risk assessment, and customer service. This expertise can help you avoid costly mistakes and improve the profitability of your sportsbook. Aside from the added savings from lower overhead expenses, you also increase efficiency, which adds up to more savings in your bookie operation.