Running a betting company can be a hard way especially at the beginning of your way to a top list of the biggest and most successful companies in your country. Bonuses, jackpots and promotions belong to a classic marketing approach to increase your customer’s database, but can every company afford big giveaways?

There’s no a correct answer on this question. There are no same companies on the market and there’re no success story to learn from. Investors invest different money and choose different ways to success. They have different expectations and schedules how to make a betting company bigger and gain bigger market share. There are different strategies and approaches to getting success and this is not the main topic of this article.

Getting your betting market share: fast and furious or slowly but surely?

In case a sports betting company comes to a new market it faces a lot of troubles and difficulties other companies already passed in past:

• New player on a sports betting market doesn’t have enough know-how to grow fast
• Newcomers need time to understand, how betting market in particular country works
• Very often, it’s bad strategy to merely copy the strategy of competitors

How jackpots work on a betting market?

Jackpot is very “tasty” for customers and for a company can be powerful tool to broaden a company’s boundaries on the market, but only in case it knows, how to use it effectively and wise. Money just are’n the only key factor which defines your future. You can spend millions of dollars on promotions in a few weeks and you will achieve short-termed effect. This is not what are you planning to get. A clear sight in the future is showing you increasing market share and financial stability. And money is not the only thing you need to realize your plans.

Advantages of a jackpot on a betting market

Without a doubt, jackpot (money/car/house) attracts big attention and can work as a big jump. Stable companies running sport books are showing that they have enough money not only for paying winnings, but also are able to give back to customers more. For sure, a company promoting jackpots are financially stable enough to give such a big prizes back to players and it evolves sense of trust.

Big companies can compete with each other and show to players, how rich they are and able to pay not only winnings but big prizes as well.

Disadvantages of a jackpot

First of all, when a new betting house is coming to a market, investors and managers believe that there is great potential there. Potential future customers can be people, who are not involved in sports betting or current customers of competitors. So, the amount of players you want to cover is huge (hundreds of thousands), but as you know, jackpot in a form of a new car or house, or merely mobile phone will be given only for one winner. It means that your goal is to make promotion visible for a very big number of people.

And that is the problem! While making its first steps on a betting market, “young” sports betting company doesn’t have its own promotional resources to let market know about your bonuses and jackpots. Yes, there’s a solution: you can advertise and make promo paying big money to a local and international media giants. On a background in form of settled market in a country even big Jackpot won’t make magic. The reason is simple: people don’t know you and the don’t trust you to choose your company to make bets. You need time to show them that your betting house is a reliable and your plan to stay on the market for a longer period.

When jackpots don’t work

There is no definitive method to learn a language fluently

In order to understand why jackpots and bit giveaways don’t need to be a magic pill to a prosperity, it’s better to show a real example, when jackpots and big money prizes are not working from a long-term prospect. Just imagine a new company entering sports betting market, which is ready to invest huge funds to promotion and marketing. A company has not been operating on a market for a long time – it meas it hadn’t earned enough money to invest in jackpots. For sure, financial injections are needed to invest to realize the plan.

In order to let the whole market know that a company is offering huge jackpots, it buys advertisement in a local TOP media agency to gain radio spots, outdoor and online ads and to publish in a local press. Company’s managers really believe that it will bring a lot of new customers.

What happens next: enormous funds are invested, promo-action is planned for 1 month and the whole city is covered with company’s promotions. During a month after marketing campaign started, new clients are registering in a hope to get aggressively promoted jackpot. Managers are happy to see growing numbers, everything is great! In the end of the month the winner is picked and the moment of giving to him a jackpot is well promoted in social networks.

Right after that numbers are going down and betting company is sad to see numbers after the big giveaway. What’s the reason of such disappointment? First of all, marketing-budget is lowered because of a jackpot given. Next jackpot is not planned. Second, players are disappointed because they don’t see any other chance to win the jackpot and they’re going away to competitors, who advertise their bonuses and more shy jackpots, but on a regular base. Gamblers believe they will try their luck anywhere else, because there’s small, but chance and they see other sports betting companies are advertising their smaller jackpots regularly and they believe that maybe in the future they will catch their luck to get it.

What a mistake betting company made? The biggest fail is that a marketing strategy was not planned for a long-term period. Nobody can earn trust on market during several months. Gaining market share is a lont-term process which should be planned and scheduled with attention and patience.