What Is A Pay Per Head?

A “Pay Per Head”, or it is called a PPH for short, is a company who leases space on their software platform to independent bookmakers who are called “agents”. These agents provide a username and password to their individual bettors called “players” so that they can place wagers online on world wide sporting events. Everything from the professional American sports leagues such as NFL, NBA, WNBA, MLB (Major League Baseball), NHL (National Hockey League), NASCAR, horse racing, the NCAA collegiate games such as football, basketball and baseball to international sporting events such as UFC, soccer,  cricket, boxing, the Olympics, and the World Cup and most anything else you could think of. Even things such as world events like presidential elections. The PPH also provides “live” casino games on the web site.

The PPH company does not take any wagers from the players they only lease the service of providing a software platform (website) to the agents who do all the paying and collecting with their players. The agents pay the PPH a set fee for each individual “Head” or player who uses the platform. This fee is paid by the agent to the PPH company weekly. For example, agent John Smith has 100 players who are active each week. He would pay the fee of $6 per head, or per player, each week which in his case would be $600 per week. Then he would pay or collect from each of his players in accordance with the total pluses or minuses of their total wagers from the previous week. We have nothing whatsoever to do with that. The agents have to pay the PPH by Wednesday of the following week for all of his players who were active on the platform the previous week. If he doesn’t pay, his players are locked out so that they can’t make wagers. His players would be screaming at him and he would be out of business. If his players can’t play, he is not making any money. The agent’s business is very lucrative so he won’t let that happen if he can possibly avoid it.

The web site has a totally transparent backend that records and tracks all activity on the web site. It allows the players to review their individual account, the agents to review all their players accounts either individually or cumulatively and of course allows us to review anything and everything. Spread sheets can be printed whenever they are desired. For individual or selected accounts.

The enclosed chart shows arbitrary agents with existing players for the purposes of example and explanation of the revenue and costs of opening and operating our own independent office.  However, we will deviate from this chart in the beginning in order to eliminate the need for employees and all of the associated overhead of maintaining an office. We will do this by outsourcing everything except sales to an existing PPH company. We have known the owner of this company for many years. In return we will pay them a portion of the $6 per head / per week that we collect for each active player. This gives us the ability to start making money right away. Consequently, we can continue to build the business until the revenue sufficiently exceeds the cost of opening and maintaining our own office and staff.  When the revenue reaches a point that it makes good economic business sense, we can open our own office.

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