Price per Head
What is Price per Head?
Price per head is a business model offered by some offshore outsourcing companies to local Bookies to aid their business.
A local bookmaker will have the following issues he or she will have to deal with:
• Aquiring Customers • Moving Lines (for sporting events) • Writing Down Bets (sometimes called ticket writing) • Dealing with Customer Support • Collect Bets • Payout Bets • If he uses a website, worry about technical maintenance • Payroll
One of the riskier parts of his business consists in ticket writing, technology issues and payroll. The reason for this is that many local bookies are located in places where there are legislative hurdles which they often infringe, causing them to be regularly presecuted. The best evidence a prosecuter can have is the writen tickets detailing the bets.
The technology and payrol issues are similar, since digital records of the betting activity and employees can give them away to the authorities. So how can a business work if the very records it keeps could be potentially harmful to the business? Go offshore.
But setting up an offshore sportsbook can be a daunting and extraordinary task. Most local bookmaking agents don’t have the seven digit capital and flexibility involved with moving offshore and setting up a betting shop. Furthermore, even if a bookmaker has the funds and flexibility to regularly travel internationally, the odds of him being successful are very slim.
This is why the price per head model is so attractive and has enjoyed such booming success. Local bookies can use the call center, technology and experience of an offshore bookmaker and only have to pay a small fee per week per player. This is why it is called py per head.
In fact, this business model has proven so easy to use and profitable, that many people have joined the gaming industry only because of the available and attractive offers from offshore pay per head companies. According to recent research, the industry has double in the last couple of years and will double again by the year 2013.
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