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How Does a Price Per Head Business Work?

Written by:
Aaron Goldstein
Published on:
Aug/01/2014
How Does a Price Per Head Business Work?

A Price Per Head or PPH business is one that manages an individual’s bookmaking business for them and charges a set price per customer.

The Price Per Head is actually a Price Per Customer in that a small fee (usually starting around $10) is assessed on that customer only if he or she places a bet in a particular week either over the Internet or by a customized toll free 1-800 number.

Say a bookie has 10 customers and only 7 of those customers bet in a given week. PayPerHead.com charges $10 or less in some cases, but let’s use the $10 number.  The bookie in question will be invoiced for $70.

What do you get for that $70 besides?

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First off fewer headaches.  The Price Per Head provides your customers with a customized website, betting tools, lines that you yourself may not be able to offer plus many sites offer online casinos and poker to compliment the sports betting should you choose to do so. 

You, as the bookie, are essentially running your own full service sportsbook online without the overhead found at a brick & mortar or your typical offshore sportsbook…and at only a fraction of the price. 

The more players you have, the more you end up saving in the long run.

A large player base means bigger bucks coming your way, but traditionally it would mean having to rent office space ($$$), not to mention the long hours put into taking and settling wagers.  Let the Price Per Head business do all of this (24/7) and you can lounge all day poolside and party all night then sleep in all day Saturday. No more answering phone calls and having to track all those wagers. Let the PPH do that for you.

In the past, agents and corner bookies had to split winnings with offshore credit sportsbooks.  That is no longer necessary. 

And the savings become even more incredible.

Say a bookie has a single player who loses $2000 in a given week.  In the past, he or she would have to split those winnings with the offshore credit sportsbook operator and only pocket $1000.  With the PPH model, only a small weekly fee is paid, again as low as $10, if not lower in some cases.  Instead of pocketing $1000 the old way, now you pocket $1990 ($2000 - $10) and your business is run far more efficiently.

Price Per Head businesses have increased in popularity due to a crackdown on Internet sportsbooks in recent years, thus making it more difficult to easily join sites through use of a credit card.  In some US states it is virtually impossible to open an account with an online sportsbook.

We should point out that bookies thrive worldwide regardless of the competition, so PPH businesses can cater to just about anyone in any country.  The Price Per Head does not handle any monetary transactions.  Instead, they act in the same way as a data processing center, making the business perfectly legal.

Gambling911.com is the most followed website among Price Per Head operators and bookies alike.  Be sure to check out our Price Per Head reviews here. *Bookies are advised to review their local laws. In some US states bookmaking, where cash transactions are combined with bet taking, is considered a felony.

- Aaron Goldstein, Gambling911.com

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