When you start a bookie business, you should know how much you will need, and where the money goes. Just like with any other business you will invest on, you need to know the startup costs, the operational cost, and other expenses you will come across. Granted, a bookie pay per head service for your bookie operation will bring down your costs by a lot. But it does not mean that you will not be spending much. Remember that when you are maintaining a business, you need to fund your operations well.
Since the cost of a pay per head service already brings your operational cost down, you now have more money to spend on other matters. So before we go into details, let’s do a little recap of the pay per head costs.
Bookie Operation: Your Pay Per Head Fees
When you learn how to become a bookie, you will discover the benefits of a sportsbook pay per head software. Here, you get a standard rate, per person, each week. That will be the basic cost of your sportsbook. So, if you have 50 players, then you pay $5 per head. This brings you to $250 per week, and $1,000 a month.
Aside from this, you also need to have enough money to afford payouts for the winnings. Ideally, you will get this from the losing bets. But if the worst-case scenario happens, and there is not enough money, then you will have to cover it, and make it up on other wagers instead. Remember that bettors appreciate fast payouts, so its imperative that you have enough money to pay them.
Your Other Bookie Expenses
Aside from your basic operational costs, you also have marketing to consider. If you are starting a small operation, then you can do away with it for now. But it would be beneficial for you to offer bonuses and promotions to your players, so that they will be motivated to stay in your sportsbook as opposed to moving to other sportsbooks with better promotions or bonuses. Customer retention is a big part of business management. And we recommend that you allot money for this on a regular and long-term basis.
Once you are ready to take in more players, then you can start funding your marketing programs. You can start simple, and offer your current players a reward or a bonus for referring new players. Once a player makes a deposit, then your player can claim their reward. If you want a larger marketing campaign, then you can go for social media advertising and marketing. Either you do this on your own, or you hire experts.
The Cost of Your Bookie Business
Again, this will largely depend on how much you are willing to spend. Some bookies set a monthly amount, while some will offer a per person amount. For instance, go on social media, and share a link to sign up. The first 100 to register can get a free bet, or a certain credit amount. If you want a full-scale campaign, then you will spend thousands in advertising your site with other websites that have high visitor traffic and high engagement.
There are other ways to spend money and expand your sportsbook business. But based on our experience with our bookies, they tend to spend the bulk of their funding on operations and marketing. These two are your main sources of income and expansion, respectively, so you should be prioritizing these.