Revenue Share Model: A Comprehensive Guide
Are you a bookie looking to increase your profits? If so, you may want to consider using a revenue share model. This type of model is becoming increasingly popular among bookies because it can help to boost their earnings. In this article, we’ll explore what the profit sharing model is and how it can benefit your bookie business.
What is the Revenue Share Model?
The revenue share model is a business arrangement between a bookie and a pay per head (PPH) company. Under this model, the bookie and the PPH company agree to split the profits generated by the bookie’s players. Typically, the bookie will receive a percentage of the revenue, while the PPH company takes the rest.
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How Does the Revenue Share Model Work?
When a bookie signs up for a revenue share model with a PPH company, they will provide the PPH company with access to their player list. The PPH company will then manage the players’ accounts and take care of everything from placing bets to collecting payments. The bookie, on the other hand, will be responsible for finding new players and promoting their business.
As players place bets, the PPH company will keep track of their activity and calculate the revenue generated. The bookie will then receive a percentage of that revenue based on the agreed-upon split. Typically, the more players a bookie has, the higher their percentage of the revenue will be.
Benefits of the Revenue Share Model
One of the main benefits of the revenue share model is that it allows bookies to focus on what they do best: finding new players and promoting their business. By outsourcing the management of players’ accounts to a PPH company, bookies can save time and money.
Another benefit of the profit sharing model is that it can help bookies to boost their profits. Since the PPH company is responsible for managing players’ accounts, they can use their expertise to optimize betting patterns and increase the overall revenue generated. Additionally, since bookies typically receive a higher percentage of the revenue as they acquire more players, the revenue share model can incentivize bookies to grow their player base.
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