Bonuses: Are They Worth it To Your Pay Per Head?
One of the main reasons why you would use a turnkey sports betting software is because it will be the best tool to help you manage your bookie operation. But another more practical reason, is that it costs a lot less than having to create your own. And when you are starting out, the less you spend, the more you save. So, when marketing experts tell you to offer treats to your players, such as bonuses, all you see is more money down the drain. It makes you wonder, if its worth the time and money.
From a business owners perspective, which is yours, as a bookie, it is more overhead. But from a marketing angle, it’s a tool to attract more sales. After all, most businesses do require startup money. But how exactly do you know how much to give? Are we talking about spending thousands to promote your sportsbook? Didn’t they say when learning how to be a bookmaker that you shouldn’t be spending so much?
Bonuses For Your Player: A Good Marketing Strategy
Most businesses have a set margin on the maximum that they will spend. It usually ties with the targeted sales for the year, or the amount of product you are planning to sell for the year. For example, if you are looking at earning $100,000, you can set a 1% budget for marketing. This means that when you expect to earn $100,000, you will have spent $1,000 to do this. Looking at the big picture, its not so much.
But more than that, offering bonuses to your players as your main marketing strategy is a win-win situation because as opposed to going to advertisers, your money goes directly to your players, who will now then be more inclined to spend it on you.
Player Bonuses in Your Sportsbook
You also need not give weekly bonuses. Most sportsbook pay per head operations offer standard bonuses to new players- a free bet up to a certain amount, or free juice. You also get to control the amount you give. So, if you have 10 players, you can afford to give them $50 free. If you have 50 players, then maybe you can adjust your bonus to around $20 so you do not spend too much. Again, the flexibility of your software will allow you total control about this.
You can also give your players bonuses for referring more people. You can guarantee a return of investment on this by releasing the bonus only after the referred person makes a deposit. If you know your bettors well, you can send them bonuses on their birthday, on the start of football season, or on the anniversary of them signing up in your sportsbook. The bonus is like hitting multiple birds in one stone- you encourage more action, you can use it to expand your business, and you use it to strengthen your relationship with you players. If we go back to the question, are bonuses worth it to your Pay Per Head sportsbook, the answer will always be a definitive and resounding YES.