What is a tipster and how can they make you money?
A tipster is someone who is knowledgeable in certain area of sports and can identify when a bookmaker or market has overpriced the odds on a selection.
The tipster will then advise the subscribers of their tipping service to bet on this value selection.
When a tipster advises a selection it doesn’t necessarily mean that the tipster thinks that selection has the best chance of winning.
But what it does mean is that the tipster thinks the odds of the selection are higher than they ought to be and if you were to consistently bet on these value selections you would make a profit over the long term.
Here’s a simple example to give you an idea of how value betting works. If you are happy with the concept of value betting click here to continue to the next section on tipsters.
A Simple Example of Value Betting
The real chances of a coin landing heads up when flipped is 50%.
So if you were to bet on a coin landing heads up the right odds would be 2.00 (evens). Any odds greater than 2.00 would be considered a value bet.
Let say someone is offering odds of 2.5 that a coin will land heads up. If you were to take the bet there is a 50% chance that you will lose the bet.
But because you are betting at odds which are greater than what they really should be you would make money in the long run if you were to take this value bet time and time again.
Now this example is purely hypothetical. I’ve never come across anyone daft enough to offer odds of 2.5 on a coin toss in my life and I’m sure you haven’t either.
This is because everyone understands that the chances of a coin landing on any one side is 50/50.
However, when it comes to sports betting, figuring out the true odds of a bet isn’t so simple.
Beating the Odds Compilers
Bookmakers employ odds compilers who are experts on specific sports to set the initial odds.
These odds compilers are pretty good at what they do, but they are only human after all and they make plenty of mistakes like the rest of us.
A good tipster can spot when the odds on a selection have been overpriced by the bookies and take advantage of this by advising a bet at the current odds.
There is no guarantee that specific bet will win but if you were to keep on betting on value selections you would turn a profit in the long term.
Beating the Market
Taking advantage of overpriced selections at the bookies isn’t the only way tipsters can be profitable.
It is also possible for a tipster to advise selections which are consistently under bet and overpriced by the betting markets in general.
This is demonstrated by tipsters who are profitable to the Betfair Starting Price.
I’ll get into greater depth on the idea of beating the markets in the systems sections of this training and show you some real examples of selections that are consistently overpriced by the betting markets and how you can make money by backing those selections.
Action Points Summary
- Now you have a basic understanding how a tipster can be profitable, click here to find out how much you should stake on a tipsters selections.