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Diversifying Esports Revenue Streams: How Are Teams Making Money?


Oct 5, 2021
How Are Teams Making Money

While Esports has definitely become more and more popular with the passage of time, there is still a huge discrepancy between the amount of money being made by traditional sports clubs and the money that are made at these Esports events. 

The main reasoning behind this is the fact that traditional sporting events have a massive advantage in the sense that they’ve been around for so much longer than Esports that Esports simply put cannot catch up anymore.

On top of that, Esports work completely differently when it comes to making money, to the point where they appear to be different mediums altogether.

lll▷ How To Make Money From Esports - Is It Easy?

Esports for example tend to rely solely on sponsors to get their prize money, while most traditional sporting events only account for these sponsorships for 25 percent of their average. They get most of their profits from broadcasting rights because they are streamed live usually on TVs.

So, as you can already tell, most of the time these teams of professionals that take part in the Esports events usually get paid through one of three means: sponsorship revenue, prize money, and of course, league revenue.

While these can bring about quite a lot of money, there is no constant source of money such as there is with traditional sporting events. So, if we want to really get to the bottom of this we need to talk about a little thing called diversity.

Diversifying the revenue from these events is the way that we can actually make sure that the income that these teams can get is constant and reliable, not a hundred percent dependent on the event itself.

So, here’s a list of several other approaches that have made themselves known over the years, they are all much more profitable and reliable than any of the other options we mentioned above and for good reason too. Here they are:

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Project-Specific Platforms

This project has been in the works for a very long time now, specifically targeting North American organizations such as Cloud9 and Team Liquid.

Cloud9 for example have tried to lead by example with their exclusive membership platform known as “Stratus”. Through it you can pay an annual fee of $500 and you can get some exclusive limited-edition items, both digital and physical, pertaining to your favorite teams.

Whether this means merchandise or content nobody knows for sure, all that we know is that they essentially spend these resources both advertising for the teams and making them money in the process.

Team Liquid has released its own variant of this project, known as Liquid+. This platform works based around the social media accounts of the official Esports team.

By continuously engaging with them and their posts you will get points which will result in you getting exclusive items from them. As time moves on more and more Esports teams appear to be switching to this medium, including FATE Esports, Virtual Pro, Team Singularity and even Team Queso for that matter.

Physical Stores

We are now specifically referring to Astralis Group and their bold initiative. Essentially what they’ve done is they’ve fully locked and loaded their efforts towards constructing as many physical stores as they can to sell their merchandise in.

Fnatic: "We opened an eSports store to prove it was possible" |  GamesIndustry.biz

On top of that, they also wish to transform these shops into landmarks for the team’s fans that they can visit to really show their support to their favorite teams. The company’s “flagship store” from Copenhagen is said to also have some high-tech gaming equipment that fans can utilize for a limited amount of time.

While this may seem strange considering the fact that Esports is a digital medium to begin with, companies such as Astralis Group clearly know what they’re doing as they’ve been successful so far, managing to make a decent name for themselves by utilizing this to its full extent.

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Gaming Centered Camps

In case you didn’t know by now, the idea of making camps for specific groups of people has been around for a very long time now, but it’s never been fully utilized by the Esports niche because it just didn’t seem like the appropriate medium to tackle.

But, as more and more people have started to realize that the Esports scene is a bit too unstable when it comes to the general income for the teams, the idea of making a gaming-centered camp seems more plausible than ever before.

Imagine this, having a collaboration between London Spitfire (Cloud9) and Nerd Street Gamers, two of the largest Esports organizations in the world, which fully concentrates on producing gaming camps.

Here you would be able to live alongside the pros in your chosen field, whether that’s Shroud from literally every FPS game out there or if it’s Rizzo or Sizz from Rocket league, you’d be able to live with them, eat with them and train with them for a limited amount of time.

You could also have video guides shared around these camps by these pros, they could literally teach you how to play the game both at a competitive level and at a general above average level as well. The idea sounds perfect but will it make it off the prepping board? Only time will tell.

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Gaming Equipment

We all know that there is a whole market that specifically targets gamers. Whether we’re talking HyperX, Razer or Corsair, there is without a doubt a certain niche that appeals to the RGB lovers out there and it’s quite a profitable one too.

So, many have actually stated that a good idea to implement in the Esports scene would be to literally have gaming equipment spread all across the market for the sake of providing these Esports teams with a constant income.

Fnatic have already started out this plan with the Fnatic Gear, and as time moves on more and more companies have started to focus their efforts towards implementing themselves in that niche.

All in all, though, regardless of which of these options will really catch on and whatnot we need to understand that Esports are no longer just a hobby, they are a serious pathway that both children and adults alike can take and make a living off of.

These options are sure to help forge a future that will allow these players to no longer have to take day jobs to fund their own passion for Esports, they will actually be able to live off of it without ever fearing that the Esports event simply put won’t be paying for itself anymore.

This is the future that we hope for, and it is the future that we can get if we all come together. So, if you’re a fan of any team, make sure to support them along the way so they can continue to provide us with amazing content.

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