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Are You Paying Too Much? Understanding Pay per Head Billing

by admin on Wednesday, July 18th, 2012

PPH Billing and PaymentFinding good pay per head services can be a daunting task! Now that you’re all settled with a fairly priced PPH agency, you might think you can relax. Not so fast, though! You still need to be on the lookout for common money traps that can skim your profits. These are all too common in the price per head industry and not being familiar with them can cost you big!

  1. Teaser Rates: Many PPH services sound absolutely great at the beginning. In fact, bookies often can’t believe the low price they are quoted and all that they get for that price. However, not all pay per head services intend to let you keep that rate for long. You’ll want to carefully monitor how much you’re paying, because many services have an ugly habit of upping the price and charging you more, usually when you least expect it and can least afford it. Just stay on your guard, read all agreements and terms and conditions carefully,  and don’t enter into any deals that sound “too good to be true.” They usually are!
  2. Maintenance Fees: PPH companies are also notorious for taking very small, almost unnoticeable fees periodically. If you’re not paying close attention, you probably won’t miss a quarter or a dollar here or there. Over time, however, these little “maintenance fees” can add up big time. Remember that reputable pay per head services will include the cost of any maintenance fees in the regular rate that you agreed upon ahead of time.
  3. Overcharging: It may be hard to believe, but there are many pay per head services out there that actually charge clients for the number of player accounts they have in total, inconsiderate of whether the player is active during a particular week. Make sure you read your agreement carefully and that you’re only charged when your players actually play!
  4. Bad Lines and Service: Every good bookie knows that proper line & risk management are the keys to being successful in this business. If your service is sloppy with its line management, your players will certainly love it, but it will cost you a lot of money and maybe even your credibility as a bookie. A solid pay per head service will always make sure that your players receive the sharpest line!  You should also have the option to move your own lines if you so desire. You might have to pay a little extra to get the kind of service you deserve, but it’ll be worth it in the long run!

 

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