Effective Management of Sub-Agents When Running a Bookmaking Business
An agent is one of the most essential roles when it comes to a bookmaking business. An agent is essentially the middleman between the bookie and player.
Bigger operations employ what is known as sub-agents, and they do provide a critical role.
By assigning and effectively managing sub-agents through the matching up with specific players and giving said customers tailored commission structures, you can increase your reach and streamline your bookmaking business.
Assigning Commission Types to Sub-Agents
You will assign the appropriate commission structure (split, profit, or redline) based on your operational needs. When setting up these structures, it is important to consider the following:
Player Risk Profile: If a sub-agent primarily handles high-stakes players, consider using the Split or Redline model for shared risk.
Revenue Goals: For consistent revenue from player losses, the Profit commission model may be more suitable.
Inform your agent support representative of your chosen commission structure, so they can implement it accurately within the system.
Types of Commission Structures
1. Split Commission
The Split commission model divides wins and losses between the master agent and the sub-agent based on a predetermined percentage. For example, if you set a 20% commission for a sub-agent:
If the players lose $100, the sub-agent receives $20.
If the players win $100, the sub-agent must cover up to $20.
2. Profit Commission
With the Profit commission structure, sub-agents only earn a commission on player losses. For instance:
If the agreed percentage is 20% and players lose $100, the sub-agent earns $20.
If the players win, the sub-agent does not incur any losses.
3. Redline Commission
In the Redline structure, a “red figure” (or negative balance) is applied when players win. The sub-agent only receives commission once this balance is cleared by player losses. Here’s how it works:
If the percentage is 20%, and players lose $100, the sub-agent gets $20.
The next week, if players win $100, the sub-agent’s red figure becomes -$20, with no commission.
If players lose $50 the following week, the red figure reduces to -$10, and the sub-agent receives no commission until the balance clears.
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