If you’ve ever changed sportsbook application providers, you know that not all pay per head software is the same. You also understand that software can make or break a sportsbook.
How does an owner determine what bookie software can help their sportsbook generate the most revenue? And then, once they have an idea of which software to use, how do they know for sure?
It’s important to consider differences in betting software. Most betting platforms are the same. One different thing is that some companies offer added platforms.
Added platforms, like BossAction’s Premium Casino, provide more options. The more options, the more money a bookie can make.
Amazon sells more products in their online store than Home Depot does because they have more products. Gaming options are the products that bookmakers sell.
But having many products alone doesn’t make one pay per head site a better fit for you than another. Like options, price is also essential.
Pay per head provider rates should never be the most critical reason to sign-up
However, price should never be the determining factor. Consumers should beware of low-cost leaders in any industry. The pay per head industry is no different.
If an organization hangs its hat on being a low-cost leader, sportsbook operators should notice and try to stay away from the company. Organizations that offer pie in the sky rates do so for a reason.
They’re likely cutting somewhere. Those cuts can hurt your sportsbook.
So, then, what is the one determining factor that you should use that separates one pay per head software company from another?
Pay per head defined
First, let’s answer the fundamental question, “What is pay per head?” The answer might surprise you.
Pay per head is renting software to run a business. It’s no different than renting Etsy’s software to run a bobblehead creation business.
The concept is the same. Bookies take their businesses online by partnering with a pay per head company.
The difference is the fee structure. A person who runs a company on Etsy, Amazon, or even eBay, often pays a monthly fee to use the software.
Pay per head software agents pay a per head fee. The fee can be anything from $3 per head to $13 per head.
How to assess PPH sportsbook companies based on fees
When evaluating software to use based on price, agents shouldn’t think about the actual fee cost. They should first determine how the company charges the fees.
Some companies charge only if a player makes a bet. So the weekly fee an agent pays is determined by how many players made bets that week.
If the player doesn’t bet, the agent doesn’t pay. The fee discussion brings us back to our talk regarding low-cost leaders.
Some fly-by-night PPH software companies charge weekly fees based on how many clients you have. The organization charges you for the number of players you have, not on whether those players bet.
If you run a small sportsbook, say six players, you can end up paying $30 per week even though only one or two of your players bet.
So you must beware of low-cost leaders. After we know how to handle the fee discussion, we can now focus on the most crucial factor in determining what software to use.
For a moment, let’s forget we’ve got sportsbook knowledge and think of ourselves as individual business owners.
You’re a bookie because you want to make money
We own a business. What’s the most important thing to know about our company?
If you said what we sell, you’re right! If you don’t know what you’re selling, it isn’t easy to make sales.
If you don’t sell, you don’t make money. Okay, we know what we’re selling. We’re selling bookmaking services.
Our customers log in to their accounts on our site. They decide to bet on football, basketball, 3D games, cricket, etc.
Now that we know what we sell, what’s the second most crucial aspect of our business? Getting paid.
You probably knew that. How do we get paid? If we don’t get paid, we can’t continue to run our sportsbook, which means we can’t continue to provide betting services.
Getting paid is the essential part of being a bookie. It’s the most critical part of any business.
It doesn’t matter the industry. If Apple doesn’t get paid, they can’t continue to make iPhones.
Payment integration is a bookie’s golden handcuffs
So when you sit down and assess sports betting software, you must first always consider how you will get paid. Not only that, but you want to get paid as soon as possible.
The flipside of that is how you are going to pay your players. Most players don’t bet until they’ve gotten paid.
The quicker you pay your players, the faster they bet with those funds. The word we use to describe paying and getting paid is cash flow.
Like every business on the planet, you must have excellent cash flow. Start your software for bookies search by looking for companies that offer payment integration.
The last thing you want is for your customers to have to go through a third-party payer like Venmo or PayPal. You don’t want to have to set up a third-party account to pay your customers.
But it would help if you didn’t stop there. You should also consider banking methods. If a company has payment integration but only accepts credit cards, you could lose players.
At the least, your pay per head software company should provide a payment integration system that accepts both credit cards and cryptocurrency. Quick customer payments are golden handcuffs that keep your clients betting on your site.