Introduction: Tipster Service
So, you want to start a tipster service? Well, much of what we write is based around the idea of making a profit with sports betting. As you’re well aware, this is not quired as easy as it might appear at first glance. There are professional sports bettors who are able to show consistent profits, but in truth, it’s a rarity. The task involves huge amounts of research and a head for calculating odds on the fly.
But these are another path to riches with regards to betting. And it doesn’t even involve betting in itself. You can make a decent living if you set up your own sportsbook and take bets from others. You’ll be living off the “juice” of their losing bets. Or you could do what we see an increasing number of people doing, and that’s becoming a “tipster. But just what’s involved in this and what are the obstacles standing between you and your tip-giving fortune?
Starting a Tipster Service
Essentially, you’ll be selling jackpot winning tips and tricks and advice to punters who are willing to pay to get just a little bit more information that they feel will turn a wager their way. As you might of already guessed from your betting experiences with sports bookmakers, there’s a ton of money to be made. Much more than you could ever hope to earn as a sports bettor. Not only that but once you build a clientele, then it’s a constant stream of gravy. For example, if you can find 100 punters to pay you $50 for your tips every month, then that already $60k a year. Or you could have the same numbers with 500 peeps paying you $10 a month. That’s a pretty good living where ever you live.
Business Models for a Tipster Service
There are really three standard models for this type of business.
Your customers pay you a straight fee for your tipster service on a monthly basis. You will provide a number of tips on a running cycle. This is a great means of maintaining recurring cash flow, as their credit cards are set to repeat the billing every month. As you gain new customers, make sure to keep them happy and you’ll see your business grow.
Similar to the above set up, except that you’ll be selling a subscription that offers more than one tip per transaction. For example, for a larger fee, you sell a number of tips for a number of sports days like a week of NFL games or even a day of MLB action. You have a number of tips that are packaged for a time period.
Just as it says on the can, you’ll be selling a single tip for a specific game. This can be for any sport or game at any time in the future. Most tipsters will offer one or more system models, or you could use a combination of all three. There are other methods out there, but we consider these three to be the most popular. We’re not saying that one model will earn you more than another. The main point is to grow your customer base using one of these models, and then you can diversify. It’s all about your own hopes and aspirations, along with how you want to interact with your clients.
We would tend to favor the subscription model of tipster service. For business cash-flow purposes, this model allows you to more or less predict your monthly cash flow. Also, your marketing expenditure remains flat as you only need to acquire a new customer once.
Marketing Strategy for a Tipster Service
Let’s get one thing out of the way. Your profitability is NOT dependent on your ability to pick winners. Nope! It’s simply being able to convince punters to join. And that comes from your marketing abilities. Gaining new customers is proof of whether your business will sink or swim. Providing the cost of acquiring them is cheaper than their spending, then you’ll have a growing and profitable business. There are a couple of ways to grow your tipster service business at the moment.
Social media marketing is de rigor and a must. In order to reach new customers, you’ll need a basic understanding of social media marketing. Using Facebook, Twitter and Instagram are all must-do factors in your search for new punters.
Take a look into the reach of radio and you might be surprised as to how many targeted customers there are tuning in every day. Many people are using radio to listen to their favorite sports, so it makes sense to run tipster ads during these sports program breaks.
Your bottom line will depend on the initial spending you can squeeze out of a new punter. This way, you’ll offset your advertising cost as quickly as possible and be moving towards a profit. Remember that finding clients, unless you have some unknown majic formula, is going to be both expensive and frustrating. So be sure to get them to pay as much as possible during your first interaction with them.
Delivery of Your Sports Picks
There are a number of means by which you can deliver your tips to your customers.
This is a no-brainer. As customers register, you’ll be harvesting their emails. Also keep in mind, that an email marketing send is totally free.
This would consist of a “private” area of your website with access to paying members only. A customer would simply log in, go to their private part and collect his tips at their own convenience. If you don’t have a web site yet (go make one!) then just stick with email for now. But the minute you have some cash, buy a URL and get started on a web site. You want to increase the faith of customers, and a website is a prerequisite of that today.
Do You Need to Be Over 75% at Picking Games?
The main take away with your tipster service is that you’re not selling tips or jackpot winning strategies, but rather, selling yourself. So you don’t have to be that good at picking out the winners. Yes, we get it, if you’re a professional sports bettor, then you’ll have real skills to share. But you most definitely are not that person. Of course, if you are able to beat the sportsbooks on a regular basis, then that’s all fine and dandy. But nobody is using your services because of that. Also, no tipster is selling tips and claiming that they will not win 100% of the time.
Tipster Service: Honesty is Not Required
If you trawl the internet and take a look at other sports tipster services, you start to see a number of hair-raising claims. Many come with any number of shady pitches and seem very sleazy. And yet, here they are, still making good money. So what’s going on? Well, it’s all about marketing. Providing you do a good job with this, then you could, in theory, simply toss a coin to make your picks. Wait…what? For example, why not give half your customers one side of an event, and the other half, the other side of said event.
Scratch the surface of most tipster services and this is the model you’ll find. And they make great profits with it. Look at the long term picture… After one month you’ll have 25% of your clients winning 75%. Another 25% will be 50% winners. And then you’ll have another quarter on 25% and finally, a quarter of punters who’ll of won nothing. Of course, there’s bound to be some attrition, but many will return.
You Don’t Have to Be a Liar to Be Successful
Is this dishonest? Probably. Is it immoral? Probably. Does it work? You bet! But at the end of the day, the poor customer receives no real value for their subscription. If we delve further into this form of marketing, we come across what are essentially scams. A common practice is to offer a money-back guarantee. The only problem is that in the small print it’s written that instead of your actual money-back, you’ll receive even more picks.
Tipster Service: Do the Right Thing
Of course, it goes without saying that you don’t need to be underhand in order to run a successful tipster company (but it helps!). You can set up a legit business, with the best jackpot offers, spend time and effort gaining the right type of customer. And just work very hard to keep them all happy. In fact, you should always consider that nothing will sink your business faster than if you are on a constant quest for new customers. If you are able to pick some winners with a more than average amount of success, then you’ll still have a decent business model to work on and thrive.
Conclusion: Tipster Service
One thing to keep in mind is that if you’re able to pick games at more than 53% win rate, then why would you want to go through the hassle of starting and running a tipster site/page? If you can touch this percentage on a regular basis, then that’s where you should be pouring your resources. After all, you’re guaranteed to be making good money. And you can sleep well at night!