When you learn how to open a sportsbook, you will most likely read a lot of guides and tutorials from industry experts. And you will always see a section on marketing that will focus on bonuses as a way to promote a sportsbook. Since your bookie operation is now online, advertising tends to take the backseat since social media and word of mouth alone is a great way to get referrals to your sportsbook. So why spend on bonuses, and how can you earn from giving bonuses in your sportsbook?
Every business spends money for operations. When you learn how to be an online bookie, you will see two main expenses on your end: the bookie software, and marketing expenses. Your bookie software is really very affordable nowadays, so you will have more money that you can allot towards marketing. Bonuses are the best way to do so, because the funds go straight to the player, and they can use it instantly.
Giving Bonuses in Your Sportsbook
For instance, you can pay an advertising company to post ads for you. It will get the attention of the players, and they could sign up. But if you are to directly communicate with the customers and offer a bonus that they can use, then chances are, you’ll get them to sign up faster. In fact, even sportsbooks that make use of large marketing companies still spend to offer bonuses to their players. Marketing companies will recommend a much more direct approach as well.
Your pay per head software is perfectly capable of processing bonuses for your players. If you are to offer a welcome bonus, say, $10 to new players, then you are spending $10 in marketing for one player. But you are not throwing the money away. Why? Because you always require a deposit before you give out the bonus. That way, you are guaranteeing a certain amount of money coming in, before you actually spend the bonus you will give to your player.
In addition, bonuses can also get your players to spend more, or to make more wagers. There are a lot of bonuses that require a certain amount spent before they can get it, so again, you are only spending on paying customers. Rewarding your customers is a great way to ensure customer retention. In our opinion, spending a percentage of your marketing budget on your players is a very efficient way of managing your operations.