So, you’ve decided you want to start a business targeting online sports betting.
The first thought that likely came to your mind was to start a bookie. That’s one option, but it’s not the only option. You could also become an agent at first to try the business out with less risk.
I often recommend to those new to the industry to become a sub-agent first. It’s similar to running your own sportsbook, but you have no financial risk as a sub-agent. This is ideal if you’re new, as learning the business on someone else’s dime is beneficial.
How to Become a Sub-Agent
Becoming agents is easy, but you should have a few players ready to start betting immediately. The first step is finding a master agent that’s willing to let you become a sub-agent under them.
Being a sub-agent is similar to being a bookie owner. You’ll be able to gain industry experience and when you have a bankroll and a healthy list of active players, you can become a bookie afterwards.
Here are some guidelines to show you what life as a sub-agent is like:
• Day-to-Day Operations: As a sub-agent, you run the day-to-day operations. You’re the one dealing with your player concerns and ensuring they have everything they need.
• Revenue: As I mentioned earlier, sub-agents don’t have financial risks. The master agent is the bank and will payout all of your winning players. You earn a prespecified commission on the net losses of your players with the rate being anywhere from 10%-50%.
• Finding Players: Your main goal as a sub-agent is to find players. However, you don’t want a bunch of sharps betting through you or else you’re never going to make money and your master agent will eventually want you to start limiting any sharps you have anyways. The best type of sports bettor as a sub-agent or bookie owner is the recreational sports bettor.
It’s important to note, as a sub-agent it’s possible to have a “red figure”. Here’s an example. Let’s say in week 1 of the NFL season your players win $1000. Your master agent will send you $1000 to payout the winners. However, your red figure will be $1000 heading into week 2 of the NFL season.
Now let’s say in week 2 your players lose $2500. Your red figure will be covered first, which will leave you with $1500 in player losses. You’ll receive a percentage of the $1500 as your payment. If you’re getting a 25% commission on net losses, you’d earn $375 from your player losses.
As you can see, your risks are limited, but so is the amount of money you can make. This is why it’s always a good idea to become a master agent or a bookie owner once you learn the ropes.
A master agent is basically the bankroll. You spend less time running the day-to-day operations, but you need to find sub-agents and you need to cover all of the losses.