Sports Betting Agent: Credit vs PPH
When you wish to get deeper into the sports betting business world and want to start generating money, there are different ways in which you can do so.
With the recent Supreme Court ruling, allowing individual States to self-regulate sports betting, it has never been a better time for local betting agents to capitalize from the current climate.
As we continue to see more and more sports betting-related content on major media outlets, the popularity and curiosity by the public is expected to cause a new influx of new players heading to the local horsebook or casino, which eventually are expected, for convenience-sake make it online.
Becoming a credit agent with an offshore sportsbook, or start using one of the sports betting agent sites provided by a “price per head” shop, are the two main ways to speed up your progress and climb up the ladder to start generating revenue in the most straightforward way.
Sportsbook agent sites have become a viable solution with the widespread of mobile technologies.
Before you start to compare price per head services it pays out to understand the two different business models and find out the benefits, drawbacks, and how to get started with each.
Credit Sportsbook Agent Sites
This type of betting agents are bettors which are in constant contact with other players, people that like betting, or are able to reach these type of people with ease.
You then contact a reputable offshore bookmaker and start forwarding your players bets to them. The difference is that these players will work as credit players, instead of the standard “post up” model.
Credit betting agents refer to the business model in which you work with an reputable offshore sportsbook and function as an agent to them. Meaning you will refer players to them, and in exchange, they will pay you a percentage of their losses.
The percentage you get paid varies depending on the offshore bookmaker, so it pays out to do your own research among the top offshore sportsbooks to find out the different percentages and terms offered by these.
The player you refer will work on a credit model, instead of the standard post-up model. This means they will be assigned a certain credit. They will use this to place their bets on the different sporting events available.
When it comes to handling the winners, you will usually have a split responsibility with these sports betting agent sites. This percentage may vary from shop to shop. It could go from 50% all the way to 70%, in most cases.
Because of this liability you share with the offshore bookmaker, for this business model to work properly and be profitable for both the sports betting agent and the offshore bookmaker, it pays off for the betting agent to know the players. So he can attest with some level of certainty if they cover their losses, if they come from good families, and if they are to be trusted.
This last point is of utmost importance considering that the local sportsbook agent is the one who is deciding to take action for the player and because of this, very much responsible when it comes to paying out winners.
This is a great option for people who don’t particularly have a strong bankroll to payout the players winnings as a very good portion of this will be covered by the offshore sportsbook.
Even though becoming a sportsbook credit agent with an offshore sportsbook it’s a great option if you are just staring on the sports betting bookie business, it does come with several drawbacks that will keep you from truly developing your business.
Mainly, you have no saying in terms of how the sportsbook if managed, it’s limits, sports, games, etc. So for example, let’s say that you noticed your players tend to win a lot on NFL parlays and you want to limit the max payout of these to become more profitable. With this business model you will not be able to do such. In other words you are there for the ride with no saying about anything.
Instead with full-fledged “price per head” services, sportsbook betting agents can control every aspect of their sportsbook. Including credit limits, max wager restrictions, and enable or disable their players with a single click.
2. Restrictions When Adding Player Accounts
Another drawback with this type of model is that currently offshore sportsbooks imposed strong restrictions in terms of which players they choose to accept; so it will not be as easy to get started and accepted as a credit sports betting agent.
3. Player Activity
Additionally, offshore sportsbook tend to be notorious for imposing limits to players that don’t bet with certain frequency. In other words, if the players you refer don’t reach a minimum quota of money bet per month, they will be cut off and their wagers not accepted anymore.
In conclusion, credit agents offer a simpler entry level for sports bettors who want to get into the bookie business world, but the restrictions imposed will, sooner or later, limit their growth opportunities.
That’s where the “pay per head” agent model comes in. Which introduce a whole new set of benefits and drawbacks to the sports betting booking equation.
PPH Sports Betting Agent Sites
Using a PPH Sports betting agent site, also known as “Price per head” or “pay per head”, is yet another way for agents to get started with offshore bookmaking.
If you want to have more control but don’t want to go through all the fees and paperwork associated with implementing a locally regulated sportsbook, price per head services may be the best fit for you.
You can choose among the top-rated price per head sports betting agent sites providers out there, to properly run your business and add an additional income source. Let’s first explore how the price per head business model works and where sports betting agents fit into the picture.
How does it work?
Sports betting agent sites provide all the required tools and services that sportsbook operators need to run their business, including insightful reports to monitor the action. Everything from betting websites, sports betting odds managers, clerks, and other IT support staff.
All this in exchange of a set fee for each player that uses you sportsbook agent site. The PPH will manage most of the aspects of your sports betting business, while you focus on balancing your book, paying out winners and collecting from the losers.
With this type of business you will only get billed for the active players that place bets on the week. In other words, you only pay for what you use. So no matter if you have little to no players, or if you are starting on the business. If no players place bets on the week, you don’t pay for them.
There are plenty of advantages of using a price per head service to run your operation. But here we are most interested in contrasting against the benefits and drawbacks we discussed on our “Credit Sportsbook Agent” section.
Let’s get started:
These sports betting agent sites are managed by experience staff, usually former bookies themselves. This experience will come in handy, as you know you can relax, sit back, and know your sportsbook is offering the best sports betting lines on the market, making it as sharp and as profitable as possible.
When using one of these sports betting agent sites to help you run your sportsbook, you have total control of your operation. Everything from lines, to max payouts, to max wagers, sports and games offered. Everything can be added, adjusted, or removed at your call.
Noticed your guys winning too much on a certain team? simply increase the juice or vigorish to -115 or even -120 to discourage or even to increase your profit on the long run.
Another useful feature this type of service allows is known as “Live Bet Ticker”. Essentially, it’s a real-time ticket notification screen which displays every single wager placed on your book.
It uses sounds and colors to help you quickly identify tickets of different amounts. It’s also fully customizable and uses powerful filtering options to really make it your own.
But why would players choose to do business with you instead of using an established offshore sportsbook, you ask? three things: Credit, Taxes, and Personal service.
Credit is something players love and it will keep them coming back to your betting agent site for more (even if they lose). They love the rush and the excitement that betting on their favorite teams brings to the table. Allowing an offshore sportsbook access to their bank account and paying hefty taxes for it don’t quite fill up their expectations.
Something to consider before starting using the price per head business model to start your betting agent path, is that these type of companies —opposite to credit agents working with an offshore sportsbook, do not share liability for the losses or winnings of your players.
As mentioned before you only pay them a set fee per player, for this they will take care of all the heavy-lifting, but you are in charge of collecting and paying out your players.
So if you are looking for someone to share financial responsibilities, this may not be the best way to go to get started.
As you can see, when it comes to starting your sportsbook, becoming a credit agent or working with a price per head company and using one of their sports betting agent sites offer different benefits and drawbacks.
There is no clear path to choose, and it will really depends of your particular goals and circumstances.
Starting as a credit agent with an offshore sportsbook may be the most straightforward option, as it basically gives you a one-off deal, but the restrictions to grow and the limited payoffs percentages may be a turn off for many.
The PPH sports betting agent sites is the easiest and cheapest to get started while still allowing you to manage a business with limitless possibilities to grow, but handling the collecting and payouts is not for everyone.
At the end of the day the passion that you put into your craft will decide which option is best for you, is with that same passion that you need to look for the best price per head sportsbook that brings the best value between price and quality.
Managing a sportsbook is not a get-rich scheme as it’s sometimes considered, but if you put the hard word and dedication, as is required for any other line of business, you will have a strong chance to be successful.
Ready to start your book?
When using PPHServices.net you will offer the best user experience to your players with the most modern sportsbook.
You also get access to all the tools and reports you need to efficiently manage every aspect of your book.