Do you know how much Pay Per Head or PPH sportsbooks really have to offer? The answer is broader than you probably expect. In fact, the only real limit to what a PPH sports betting site can offer is your imagination. In a sense, if you can dream it you can do it.
Over the decades the sports betting industry has rewarded innovation. Those who stuck with the basic big four sports and simple pick ‘em and against the spread wagers were left in the dust with the pencil and paper bookkeeping.
Today you have to be ready to adapt and support the markets that your customers are really interested in, even giving them something they did not know they wanted at first. Making a profit with your sportsbook takes some versatility, flexibility, and yes, imagination.
Fortunately, we have a wealth of knowledge and guidance right here at Power Pay Per Head and we are going to share some of the most important insights on how to make a profit with PPH sports below.
Feast your eyes on the wide world of sports betting and unlock the true potential of your imagination at work.
If you have watched a mainstream sporting event or even many of the smaller leagues you have undoubtedly encountered advertisements for sportsbooks indicating that they support that league or game and offer it in their betting market.
In reality, most sportsbooks go further beyond the biggest leagues in the world and offer betting markets on events you did not even know about. The sports betting industry would not be the major money-making industry that it is if it was not giving customers what they want.
That is why markets in the NFL, NBA, MLB, NHL, international soccer, and combat sports are heavily advertised. But did you know there are so many more unique markets that appeal to very specific types of bettors? And if you are starting a sportsbook and your first customers are among those that are interested in those events, you would be wise to capitalize and cater to those players. Let us look at horse racing for example.
While it is not the mainstream sport that it was in the 1950s and you may not be as aware of it if you are not frequenting a brick-and-mortar casino, horse racing is still a giant in the betting industry. Every year, horse racing is a more than $12 billion industry in itself.
Would it surprise you to learn that it is getting even bigger? In 2021, horse racing revenues grew by more than 10%. Similar to international soccer, horse racing has events constantly throughout the world and throughout the year.
Many sportsbooks wisely offer horse racing lines knowing just how fruitful the market can be. What’s more? There are tons of niche markets that can be supported by PPH sportsbooks. Maybe you have a group of friends that are interested in lacrosse, cricket, kickboxing, or any number of motorsports. Again, only your imagination can limit the possibilities of PPH sports.
Your sports offerings
It is not enough to just have different sports and leagues available to wager on in your sportsbook. You also need to cater to those individual leagues and the types of players that are drawn to them. An NFL bettor and an MLB bettor are two very different types of bettors, even if it is someone who wagers on both. The approaches and tendencies are as different as the sports themselves.
Therefore, treating them the same way from a betting agent’s standpoint does not make a lot of sense. The modern football bettor for example loves to play prop bets and is specially engaged in the early part of the season, during big games, and for the big Super Bowl finale at the end of the year.
What better way to get those betting juices going than to offer promotions for the season kickoff or Super Bowl? How about creating your own unique prop betting market and emphasizing it to football bettors? So how do you change this approach to baseball bettors? Some things stay the same.
The beginning of the season, the postseason, and the World Series will generate more interest. But who are baseball fans? They are often dialed into the day-in, day-out happenings of the league. They know their statistics, have strong opinions about who has the edge in a pitcher’s duel, and cannot wait to test their knowledge against other self-proclaimed experts. Football fans might know their stuff but baseball fans have it down to a science. As they should.
Unlike football, MLB plays 162 games a season and more in the postseason. That creates a deep database of statistics, trends, and player tendencies to pull from. More data truly is more scientific. That means you likely need to focus even more attention on betting activity and league activity when you are setting up your baseball market.
You can do it and it does not have to be overwhelming. After all, that deep dataset can work to your advantage as well. It is just a different type of player you are up against. The fast-paced nature of the NFL, MLB, and NBA is appealing to many, but it is not appealing to everyone.
For instance, golf bettors have the option of betting on live action on a hole-by-hole basis, but there is also the appeal of who will win over the course of a four-day tournament. Some of the most popular golf bets include head-to-head bets and single-player props for the day and the tournament.
And while the NFL might attract a higher number of betting tickets, golf can generate a larger cash-per-wager ratio. In short, you should offer sports that you know a lot about and be aware of how the tendencies of the bettors differ among them.
That way you are not caught at a disadvantage with the players in your sportsbook. Know your audience and create an enticing experience for them to keep them coming back.
Why should you diversify your PPH sports offerings?
The sports calendar ebbs and flows with leagues ramping up as others downshift. With that in mind, if you want to keep a steady stream of activity on your sportsbook and money flowing in and out of your business you want to continuously have action happening on the sportsbook.
The activity is equally as important as the actual money aspect because of the concept of “out of sight, out of mind.” If a bettor leaves your sportsbook for five months after the NFL season ends, how likely are they to come back? Life gets busy and people are creatures of habit.
Sure, many bettors will re-engage when their favorite league is starting but some, especially the most casual bettors, are more likely to drift off if they do not remain engaged. Diversity goes beyond having multiple leagues to wager on.
This goes back a bit to catering to your different types of bettors. You also want to diversify the way your bettors can play. Eight-one percent of sports bettors wagered on the NFL through a mobile app in Oct. 2022, versus 34% of college football bettors, according to Variety. It is the same sport but the way bettors preferred to play was very different. /p>
How to make and increase your profits
Develop a plan
If you want to make money running a sportsbook it all starts before you even start taking bets. Develop a sound plan for how you are going to run your business. This starts with understanding what your cash base is for launching, choosing a platform to host your sportsbook, getting a license, and prospecting for players.
Your entire plan is predicated on your goals as a betting agent. This should include your modest goals for day one as well as your long-term goals. To achieve those goals you need to determine who your target market is today and how you plan to grow that market once you are off and running.
Often your player base will start with friends and family which is great. That allows you to get the hang of setting lines, managing players, keeping customers happy, and the bare-bones basics of running a sportsbook.
Execute your Strategy
Once you have the hang of that you can move on to the next phase which is drawing others in. This will start with some word of mouth from those initial players and if you keep doing a good job of giving players a fun experience you will eventually start to expand.
Your business plan also needs to include a marketing strategy. While you may not execute this right away because you want to adhere to your budget, at some point you will need to decide what channels you want to put effort into to advertise your sportsbook. Like NFL vs MLB bettors, the audiences on Twitter vs Instagram are very different.
The differences are even greater when you go even broader, looking at social media vs physical media, radio, or television. The expense and time commitment also changes across these channels. You should familiarize yourself with some of these differences and decide what type of bettors you want to bring to your sportsbook.
Running a sportsbook is a lot of fun but there is still some behind-the-scenes work that has to be done. PPH platforms can take care of a lot of that busy work and ensure that processes like recordkeeping, customer service, and regulations are handled properly.
It is still beneficial to keep a close eye on your finances and establish your own operating procedures, even a schedule, to stay on top of your business.
Develop and grow your customer base
We have touched on this elsewhere but there are a few more things to add. Maintaining and growing a customer base begins with setting competitive lines. The lines cannot be too juicy your bettors might be a little too happy, meaning you will be losing your bankroll.
So it can feel like a bit of a highwire act if you are doing it right. But there is nothing wrong with checking your lines against others and adjusting as you go. If you are setting lines competitively you are well on your way.
Next, you want to whet the appetites of your customers by offering promotions and bonuses. The hardest part of starting a sportsbook is getting players onto the platform and having them lay down their first bet.
After they make the first bet, they are more likely to make the next one. Sign-on bonuses are a great way to convert people into active customers. We all know a good deal is hard to pass up.
Manage your finances
Your PPH platform makes record keeping easy, keeping track of wins, losses, and cash in and out through deposits and withdrawals. This should still be monitored regularly so you are always in the know. It will be up to you to ensure that you have adequate cash flow to pay your winners, cover your operating costs and pay your taxes.
Monitor and improve your operations
Even when everything is going well you want to avoid complacency and continue looking forward. You likely started your sportsbook offering the basics and maybe a little more such as props or pools. As you continue to move along you may want to offer more types of bets, find new ways to improve customer relations, or familiarize yourself with more of your platform’s capabilities.
Use statistical analysis
Any and all data available to you through your PPH platform is a crucial tool you should learn how to use to your advantage. It does not stop there. Analyze statistics and trends in the sports that you are offering. Stay in the know on teams’ records against the spread.
How often does a certain team go over the total points line at home? How does a certain team perform in warm weather games, different time zones, or against a certain division? If you look closely enough you may find trends among your bettors as well.
Did one of your players bet $1 on a bet and lose, bet another $1 and lose, then up it to $2, $3, $5 then $8? They might be using a mathematical system called the Fibonacci sequence, which is a common betting strategy that allows a player to eventually cover their losses if they stick to it long enough to win.
Even bad luck ends eventually. If that player somehow loses enough bets in a row to start wagering big bets you will need to be prepared to pay them out. Identifying that trend will help you be prepared for that.
Stay up-to-date with the industry
As we said from the start, the sports betting industry is constantly evolving. Get to know the ins and outs of the industry by following developments in legality, changing regulations, betting trends outside of your sportsbook, and new technologies.
There are also new sportsbooks that are coming out with different ways to play, such as point betting. If an exciting new way to play catches on you can differentiate yourself by picking up on the new development.
Keep your customers happy
Excellent customer service is one of the biggest keys to a successful PPH sports business. Keeping customers happy is largely about the effort you put into listening to their feedback, good and bad. If they are able to manage their account and bankroll with ease, get paid out quickly and accurately, and make the wagers they want to make without a hassle, chances are they will be pleased with your sportsbook.
Then all you need to do is pay attention to where their bets are going and make sure that you are providing those options to them as often as possible. Running a successful sportsbook requires a combination of several skills, sports knowledge, and effort.
A great PPH platform like Power Pay Per Head can take a lot of the challenges out of the equation by keeping your records and making the management of your funding seamless. Being a betting agent is a fun and fruitful way to use your vast knowledge of sports to offer an exciting and appreciated service to others.
Set lines that are competitive and stay responsive to your customers. You also need to have a strategy for attracting and retaining customers, such as offering promotions, providing excellent customer service, and creating a user-friendly platform. Additionally,
you need to stay competitive and innovative, by staying up-to-date on the latest betting trends and technologies and continuously improving your offerings. Lastly, it’s important to have a plan for covering your losses and managing risk, such as implementing strict risk management practices, setting aside a reserve fund, and diversifying your offerings.
By combining these factors, you can create a successful sportsbook that generates steady profits and provides a rewarding experience for your customers.
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— Power Pay Per Head (@powerpph) February 13, 2023