What is Cost Per Head?

On March 21, 2012, in Bookie Advice, by Buddy TB

What Is Cost Per HeadIf you are a bookie then you have probably heard the term cost per head, sometimes referred to as pay per head, bounced around a lot. In short, this term refers to a service that allows you to manage your sports betting and gambling clients in an easy, straightforward manner. With a good cph service, you will be able to outsource wagering activities to a professional data processing center while maintaining complete control of all of your player activities. The ultimate reason to use a CPH service, of course, is to help bookmakers maximize their profits. They make their money by charging a set price per player on a weekly basis.

There are a lot of different cost per head agencies to choose from today but not all of them are equal. The best ones give bookies access to sportsbooks located overseas, in areas where betting and gambling are legal. The most popular area for these services to be located is in Costa Rica. By basing service centers offshore, where the actual gambling and bookmaking takes place, the possibility of legal issues is greatly diminished both for the bookies and their clients.

When choosing your cost per head service, location isn’t the only important factor to think about however. You also, of course, have to think about what it actually costs you to use the service and whether or not the price is worth what you get. Now that you have a large portion of your legal exposure taken care of it’s time to consider the quality of service that is available. With so many cost per head companies springing up, seemingly overnight, you need to be selective in a buyer beware business.

The 1st thing you should look for is longevity, how long has the service been in operation. The next thing to check is the reporting and backup systems. Ask for a test login so that you can see what kind of player reports can be generated. The reports should be easy to generate and provide clear and concise information on all aspects of a players gambling activities. Backups are something that you’ll never really think about until you need them. They’re like an insurance policy that will keep you in business when something happens like a major power outage. We can’t stress the importance of backups or redundancy enough. Think what would happen to your business if your CPH service went down on an NFL Sunday or Super Bowl.

Doing business offshore is easier than you might think. Start checking around, make some phone calls and ask questions. With some due diligence you will find a service that’s right for you.

 

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