When managing your players, we tend to look at getting volume. Of course, the more players you have, the more wagers you get. This means higher vig, and higher profit. But when accepting a certain number of players, you also risk a higher overhead. Part of your bookie pay per head services are settings to manage your players. This is something you should always make use of.
By managing your player limits, you ensure a profit margin, or, at the minimum, an amount that will cover your players fee. As for the maximum, its up to you to set them, since you will bankroll that in case you will need to pay them out.
Setting Wager Limits
This is also called bankroll management. The very basic limit you set should at least cover the pay per head fee you pay for your players. This prevents loss in that aspect. So for instance, if your bookie pay per head software charges $5 per player per week, then your minimum per week should be at least $5.As for the maximum, it really boils down to the bookie. Some like to put the limit high to get to profit more. Some prefer to set a limit to protect their players as well. This is because some bookies want to assume that not all players are responsible gamblers. Then, as time passes, and a good relationship is established between bookie and player, the bookie can increase the player’s limit to a higher amount.
Bankroll Management
One popular formula that bookies use, is to use a percentage limit that you base on a single wager versus bankroll. For example, your player can do $2,000. You can pull in 2% of that total amount as a maximum wager per game, which is around $40.
Another formula that some bookies use, is have a limit set on a weekly budget that you base on the players bankroll. For example, your player has a $500 a week budget. You can use 10 or 20% as the maximum. This leaves your player with a maximum wager of $100 per game. Your player can then bet lower to bet on more games. Regardless of how your player bets, he will not exceed $500 a week.
The beauty of your pay per head software, is that you can customize these limits PER PLAYER. The flexibility you get can allow for a better profit margin for you, and is also a great way to manage players and keep them happy, not broke, and betting every week. Of course, not all sportsbooks do this, so check out some pay per head reviews to see which ones have better bankroll management features.