Many local bookmakers use offshore services to provde the best experience for thier customers. Now, even online start-ups are using these services called Price-Per-Head or Pay Per Head. We will take a look at what this is and how it works in a three-part series and interview with an up and coming PPH provider based in Costa Rica.
OSGA: Tell us about the service product called Price Per Head bookmaking.
PremierPerHead: Pay Per Head is a way for local bookies to out source the booking and record keeping of their action. The bookie then only has to focus on getting more players and paying and collecting from his current players. It of course makes it much easier, and also gives them the opporunity to earn more because of many more betting options and 24/7 availability.
OSGA: So instead of attacking the local guy, you actually approach him with your offer?
PremierPerHead: Exactly. The fact is that the relationship is the last thread holding clients to a local guy. Yes, there is the fact that the local guy extends credit, but with bonuses and promotions we can overcome that offering. The key is the relationship.
OSGA: I'm confused, please explain.
PremierPerHead: As you know, the onshore bookmaking market has lost steam to the offshore giants like CRIS and BetOnline. The reason is that the offerings that we can provide are far superior to those that any onshore bookmaker can offer. The PPH concept is based on allowing the onshore bookmaker to provide his clients an automated online tool. Rather, by signing up with our PPH service, an onshore bookmaker can compete with all online sportsbooks on equal footing by offering 24-hour wagering, 365 days a year. All the bookmaker does is use an online system to assign PINs and PASSWORDs and pay a small fee per week to PremierPerHead for the service.
OSGA: Wait a minute. So, this means that a small time operator in Cleveland, Ohio can offer all the same things that storied offshore bookmakers have been proviiding for years without making the multi-million dollar investment?
PremierPerHead: Now you're catching on. For just a few dollars per client per week, a guy in Ohio can compete with the biggest sportsbooks in the world. And, better yet, never answer another wagering phone call again.
OSGA: OK, I get it. They use your automated tool to drive their clients to your software online, and they simply pick up the figures at the end of the week.
PremierPerHead: Exactly correct with one exception. Their clients can bet on the phone via our call center OR bet online. Again, they have access to all of the offerings that most online bookmakers provide, including call center access, client services and technical support.
OSGA: Is the PPH product only based on sports wagering?
PremierPerHead: No, far from it. At PremierPerHead we offer a wide variety of Pay Per Head services. To start, a casino and racebook that are included in the price. The players have the ability to play the casino from their desktop or even their smartphone or tablet. The horse racing program offers tracks from around the world. There is also live casino and poker applications available to the agents. We offer many entertainment and political props year round as well. These are some of the benefits of the Pay Per Head platform.
OSGA: Do you have any success stories to tell?
PremierPerHead: I have many, but will tell you one that emphasizes what the PPH program can do. I have a bookmaker that has been working out of Texas for 10 years. The guy has historically made $200,000 a year from his 25 or 30 players. He was introduced to our product several eyars ago, and today he is writing over 185 clients. The ability to outsource answering calls and writing tickets to us has allowed him to grow his business 600% and his revenue over 1000%.
OSGA: Why did his revenue grow more than his business? Is it because your lines are sharper than his?
PremierPerHead: There you go again. That is the obvious mistake that everyone makes. Again, don't worry about beating the clients. Worry about getting more clients to play. But, to answer your question directly, the ability for his clients to play in the casino, play 24 hours a day, play games/halves/quarters, props, etc. is where the extra revenue comes from. Our lines might be sharper, but the advantage is more clients betting more often.
OSGA: How many bookmakers do you currently work with?
PremierPerHead: We are writing business for over 100 bookmakers now. Some represent groups as small as 2 or 3; and others represent groups as large as 500. Again, remember the key is finding as many clients as possible. If you get to where you are writing 15 clients or more, it is almost impossible to lose for an extended period of time.
We examine more about PPH in a parts two and three of this series. Check out part 2 here.