Is Being A Tipster Easy Money?
By Michael Wilding
- Have a selection method that fits with your risk levels
- A bankroll the right size for the selections strike rate
- Bankroll management properly in place
- The mindset to withstand losing streaks
- Be prepared to stick with selections for an extended period of time even if they’re in a downswing
I know that, as Race Advisor readers, most of you will already know this. But most punters don’t. You don’t have to search far to find forum posts by punters saying that they should become a tipster because it’s easy money. Or that tipsters make money even if a selection wins or loses, so it would be easier to be one of them than trying to actually make a profit from your betting. Through our proofing we see hundreds of tipsters selections every day here at the Race Advisor, and they come from all walks of life. So, for the first time, we’re going to take a look at whether being a tipster is easy money.
In order for this to be a fair assessment, I want to present you with all the facts as I see them and then leave it up to you to decide whether you think being a tipster is easy money. But, I want to make sure you know what my opinion is first. And it’s… No, I don’t think being a tipster is easy money. I think it’s much easier to make a profit from your own betting, if you do it correctly, than it is to run a tipster service. And here’s why…
To begin I want to look at all the elements that make up a tipster service. They include:
1. Sales Page
2. Payment Processor
3. Contact and Terms and Conditions Pages
4. Marketing Campaigns
5. Membership Management (activate/cancel members etc…)
6. Customer Support
7. Daily Selection Finding
8. Tip Delivery (either email, member’s area or both)
9. Results Update
That’s nine elements that you need before you can get started as a tipster. Admittedly some of them, once finished, won’t need updating very often. But on a daily basis you’re going to have to do everything from number four through to number nine. And that’s a lot of work. Let’s put some estimates of how much time you may spend on each of the regular tasks.
- Marketing Campaigns – 2 hours a week
- Membership Management – 1.5 hours a week
- Customer Support – 1 hour a week
- Daily Selection Finding – 1 hour a day
- Send Tips Through Delivery System – 0.5 hours a day
- Results Update – 1 hour a day
I think they’re pretty good estimates, but I’ve gone for the minimum amount of time you’re likely to spend finding selections each day. Over the seven days of a week, this would add up to 22 hours a week. Of course, don’t forget that the more members you have the longer you’ll spend on customer support and membership management.
So, you decide to sell the selections from one of your profitable strategies as tips. You get everything set-up and you’ve just had a great winning streak so you want to launch your service while it’s doing well. Where do you find your future members? You might put some ads in betting forums, or ask some of the bigger websites if they’ll promote you and, if you’re lucky, you get your first 20-30 members each of whom is paying you £27 per month. Brilliant. You’re making £810 a month for your selections, which you were finding anyway. All you need to do is email them out to your members.
Of course, you have to pay for website hosting, member emailing facilities and payment processing. This is probably only costing you about £100 per month so you’re still making £710 profit. Not bad. Until you realise that you’re spending 22 hours a week running your service. That’s 88 hours per month. You’re currently making £8.07 per hour. That’s above minimum wage, but it’s certainly not the huge sums of money that everyone’s been mentioning tipsters make in all the forums.
And then you hit the inevitable downswing that affects all punters, profitable or not. Most of your members aren’t like you, after all that’s why you’re here reading this blog, they think that as a tipster you should make them a profit every day, or most days at the very least. Of course, you know this isn’t possible. After all you only have a 25% strike rate which means you’re going to lose 75% of your bets, and you’ve clearly put all your stats on your sales page. But that doesn’t matter.
You’re not winning now and your members start to leave until pretty soon you’re down to 10 members. Now you’re making £270 per month, but your costs are the same at £100 so you’re only making £170 per month profit. That’s the same as £1.93 an hour over the month. To get more members you need to do more advertising, but you can’t afford it because you’re not even making enough to cover your time.
Of course, this isn’t the case for every tipster. Some become hugely successful and, even when they have a downswing and lose members, they have enough members who know they need to go through the downswing to come out the other side that it doesn’t affect them. But, in my experience, this is the minority. The majority of tipsters out there fall into the first category.
Have you ever wondered why so many tipster services start up and then disappear within a year? Since we started proofing tipsters at the Race Advisor, we’ve seen 173 services close down. Currently we’re proofing 123 services, which means… 58% of all services we’ve ever proofed have shut down!
Admittedly, a fair share of these didn’t make any profits for their members. And the reason for this is because the owners thought they could start a tipster service without being able to make a profit from their own betting. But there’s a good number who closed down because they couldn’t get enough members who understood that they needed to follow them for the long run. Some of them made excellent long-term profits but within a year the tipsters realised that they could make more in less time by simply betting on their own selections. So what exactly am I saying here?
- I’m not saying that there aren’t tipsters making a lot of profit from their members.
- I’m not saying that it isn’t possible to start a very successful tipping service.
What I am saying is - I don’t think that running a tipster service is necessarily easy money. Please post a comment on the website below:
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