by Bryan B.S.
15 Nov 17
Some rookie bookies choose to reinvest every penny they earn back into the business, they do this trying to achieve a healthy cash flow that allows them to pay back to funders if they have any, or to increase the bankroll in order to grow the business. They think this is the right move to speed up the expansion of the business and they are willing to not pay themselves to achieve that.
The true is that this strategy is not bad if you keep your regular 9 to 5 job, while your bookie business develops in parallel. But it's not recommended that you do it for a long period of time, thus it can affect the way you handle the business and the way other people feel about the business. For example, if you have a family after a while they will start to question the sense of a business where you invest time, energy and money and you don't get a profit back.
Even your own investors may feel that something is wrong with the business, when you put all your money back to the business without taking a reasonable share for your job, they can think that the business is in trouble and you are desperate to keep things up float.
You can even lose focus or interest in the bookie business if you don't get some cash to blow once in a while, that's why you should follow these recommendations to establish a compensation policy for you as owner:
The three-part rule:
When your betting site achieves a stable cash flow you should fraction money in three main categories:
You: Establish a reasonable share for yourself; this can be around 15% of the monthly profit.
Debt: Make sure to spare enough money to cover your debts, this includes the cut for your investors, and the monthly fee for the pay per head provider, since you charge for base on your players' betting action, this allows you to keep the expenses under control.
The Business: Always spare around 10 to 15% of the earnings to invest back into the business and increase your bankroll.