Betking is the fastest growing betting company in the world the sport betting brand which was officially launched February 2018 is fast becoming an household name to reckon with in the sport betting industry in Nigeria.
In this post I will explain how the commision works and what agent and investors needs to understand.
Generally the industry is moving away from the era of commission on profit to commission on sales, agent and investors need to understand that the business massively depends on volume sales.
Sport Bet Weekly Commission
Betking Sport weekly commission ranges from 1% to 30% which is the highest in the industry for every bet slip you registered you get paid commision irrespective of the outcome.
If a punter plays one game in a slip with N10,000 your commision will be N100 as the selection increases your commission will also increase, if 15 games are selectected thats is 16% commission for a N10,000 game played, the agent will receive N1,600 as commision.
The type of customers you have will directly affect your commission, if majority of your customers are the type that plays low risk like between 1 to 3 selection per slip, don't expect your commision to be fat and this is why the company also came up with a monthly bonus share which is usually paid every last monday of the month, and to qualify you must have a minimum sales of N150,000.
Monthly Bonus Formula
This is the part that confuses most agent I had a conversation with one agent he said and I quote “ Monthly bonus is 25% of the profit you made for the company” this is wrong, many of us misunderstand the formula in the blue circle which can also be written as follow
MONTHLY BONUS = (TOTAL SALES — TOTAL PAYOUT * 0.25 )- TOTAL WEEKLY COMMISION RECEIVED FOR THE MONTH
What this means is that Betking will pay you bonus if 25% of the profit you made for the company that month is greater than the total commission you have received on sport that same month.
Agent Mark Record above shows the total sales for the month. Here we have Total stake 780,000 Total Winnings 238,0000 total commision 87,750 Now let's apply the formula to see if the agent will receive monthly bonus.
Monthly Bonus = (780,000–238,000 * 0.25 ) — 87,750= (135,500–87750)
Monthly Bonus = 47,750 (Agent Mark will be paid monthly bonus)
Agent Jude Record above shows the total sales for the month. Here we have Total stake 780,000 Total Winnings 650,000 total commission 87,750 Now let’s apply the formula to see if the agent will receive monthly bonus.
Note: Agent Jude sales and commission are the same with agent agent Mark the only difference is that Jude winnings is greater than that of Mark
Monthly Bonus = (780,000–650,000 * 0.25 ) — 87,750
= (130,000*0.25)-87,750
= 32,500–87,750
Monthly Bonus = -55,250 (Agent Jude will not be paid monthly bonus because monthly bonus is on a negative balance this means his total commision received for the month is greater than 25% of the profit made)
Why is the monthly bonus paid?
For me It's a structure that is used to compensate agent who falls into a scenario where agent made profit for company but happen to have been paid low commission as a result of the numbers of games selected per ticket. Now let's look into two possible scenario with the same amount of sales and profit made.
Scenario 1
Agent A registered only 1 slip with 1 million for a period of one month, and in that slip only one selection was made lets say a draw and there was no winning.
Agent A will be paid 1% of 1 million which is 10,000 as commission due to some circumstances that was the only game he played for a period of one month and 10,000 was the only commission received for the month.
Since there was no winning Agent A made gross profit of 1 million for the company 25% of 1 million is 250,000
The question is how much bonus will be paid to agent A for that month recall the total commision received for that month is 10,000 now let's apply the formula.
Monthly bonus = (Total stake (1,000,000) — Total payout (0)*0.25)- (Total commission Received (10,000))
Monthly Bonus = 240,000
Result is on a Positive balance of 240,000 Agent A will receive 240,000 as monthly Bonus for that month. So his total earning for that month is 250,000
Scenario 2
Agent B registered only 1 slip with 1 million naira for a period of one month, and in that slip 30 games selection was made and there was no winning.
Agent B will be paid 30% of 1 million which is 300,000 as commision due to some circumstances that was the only game he played for a period of one month and 300,000 was the only commision received for the month.
Since there was no winning Agent B has made gross profit of 1 million for the company 25% of 1 million is 250,000
The question is how much bonus will be paid to agent B for that month recall the total commision received for that month is 300,000 applying the formula
Monthly bonus = (Total stake (1,000,000) — Total payout (0)*0.25)- (Total commission Received (10,000))
Monthly Bonus =25% Share (250,000)- Total commision (300,000)
Monthly Bonus = -50,000
Result is on a Negative balance of 50,000. It means the total commission received is greater than the 25% of the profit share so Bonus will not be paid to Agent B but Agent B total earning for that month is 300,000 which is 50,000 greater than what agent A earned combined.
Summary
The Big question is which scenario will you prefer to fall under 1 or 2 ? For me I have always fall under scenario 2 where my total commission for the month is always greater than the 25% profit share and I prefer it that way.
So it doesn't matter if your sales is over 150,000 every month and you don't receive monthly bonus you should be happy to be in that situation because It means your type of customers makes you earn bigger commission.
To qualify for monthly bonus your sales for the month should be above 150,000
Monthly bonus are usually paid every last Monday of the month.
