Last updated on May 28th, 2022 at 06:01 am
Using a sportsbook pay per head service has become the norm for any online bookie. It is, after all, the most affordable and efficient option for those who want to run their very own sportsbooks. And while the cost of using a pay per head software varies, its still generally much more affordable than other options.
But just like any business, you will want to recoup the cost of running a sportsbook. How exactly do we go about doing this? First, let’s take a look at the cost itself. As a bookie pay per head software, the cost is priced per person that places a wager in your sportsbook each week. It does not matter how frequent the player placed their wager, the pay per head provider will only charge you a flat rate each week. If that particular player will not place a wager that week, then you will not be charged.
And since the charges are per player, then it seems practical to look at the activity of each player. Your goal will be to get your player to place enough wagers for you to recoup the cost of the pay per head fee each week. The primary way of getting this is through the vig. The vig, or vigorish, is the commission that a bookie takes each time a player places a bet in your sportsbook.
Cost of Your Pay Per Head Software
So, let’s be clear there: the pay per head fee is once a week, while the vig you charge your player is once per wager. Therefore, you recouping any operational cost that you have will come from that. Basically, the more a player bets, the higher your profit margin gets since there is more vig. Of course, this is assuming that you are balancing all of your lines well. Any excess from your collection less payments will be your net profit.
From your net profit, you deduct the pay per head fees, and any other promotions or expenses you have for your sportsbook. Anything left from that, is your net profit as a bookie. This means that it really does become easy to earn as a bookie with the best sports betting software. You are, after all, able to recoup the cost of the pay per head fees easily.
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