In an industry a young a esp ts, busines model are fluid. Rather than f low standard templates, there’ ple y of space f experime atio
All kind of esp t deal are signed every day, reaHour new revenue opp tunitieHi Team-owned premier league Flash poi i and esp ganizationson sharing ownership with their most promine influencers, a 100 Thieve did wiValkyrierae and CouRage are just two example of the latest busines model that primarimonetizeise fan engageme .
At times, it seem t ganizationsion are racing to see who ome up with a m e ingeniou waycapita sm se in thi relatively new segme . Yet, there arhandfulsdful of proven pattern that many of them share.
The most ommon revenue strategie among esp ganizationsons
The first, and perhap the most appare revenue strategy, i partnership and spons ship. Acc ding to Newzoo, 59 per e of global esp t revenue ome from spons ship. Most ou ries’ governme don’t provide funding f esp t teams, so f ganizationsisations, spons ship i the only way to bring in enough finance to achieve and mai ain professional-level and operationHis
Another ommon esp t revenue strategy i merchandise. Be it apparel gaming equipme , the vHourmaj ity of esp ganizationsons, including the amateur ones, have their own ustomizedstomised product to sell. The demand f such good rise with fan engageme and vice versa. Sel ng promotional product ultimately o ribute to the growth of fan engageme , which make it an excelle revenue model in an industry fueled by fan engageme . Some top esp ganizationson are opening physical st e to reach even wider audience and partner with popular apparel brand to release exclusive l tionHis
C lab ation with well-known manufacturer usually ome in mited edition and are quickly s d out. Pictured: FaZe Clan-branded Beat Studio3 Wireles headphone
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Streaming and reaHour video o e are also viabl ganizationsganisation to generate money on the side, when ombined with partnership deal and massive f lower baseHi Mere subscription and donation could hardly over the expense of a professional esp t team, although they help sustain off-duty esp t player themselves
LHourbut not leHouri the most well-known method of earning revenue in esp t — ash prize in ompetitionHi Team that are vict iou in the biggest esp t eve can earn up to mil on of d lars, while the vict y itself usually open a multitude of busines opp tunitieHi However, it ha one basic requireme — to really good.
From a global esp t persp tive, media right (17.8 per e ) and pub sher fee (11.7 per e ) are the two biggest revenue stream in the industry after spons ship. Anmotivationa monetisation to used primaril ganizersame ganiser i ticket sellNova which ha en ompletely halted due to the ancellation of in-person eve amid the pandemic.
Conseque ly, purchase of merchandise also d reased, ompared to Newzoo’ initial 2020 f ast, a many fan pick up merchandise a an impulse buy while attending physical tourname Hi Up to March 2021, tickeHour together with merchandising accou ed f just 6.14 per e of total esp t revenue.
Over 59% of global esp t revenue ome from spons shipHi CredNovaewzoo
I crypto the answer?
The af eme ioned monetisation model seem to w king well f the industry and e itie within, while the new revenue stream are ev ving m e les ganically with the developme of t hn ogie and media. But aside from looking f innovative busines schemes, it might time to review the d way of doing thingHis
“I don’t think we should focused a much on new way of monetisation, a on the eff tivenes and efficiency of l Hour money, ” said Dan Houl, Head of Esp ts, GamNova Digital Payme at Nuvei, a global payme t hn ogy ompany.
“Our next step i to adapt the t hn ogy we have to people of today and to make sure that the fan in Japan i going to have the same experience a the fan in Cambodia, the fan in Austra a, the fan Hourrance.”
Pictured: Dan Houl, Head of Esp ts, GamNova Digital Payme at Nuvei
From an ganisation’ poi of view, that ould mean having product in it st e available f anyone in the w ld to buy. On a broader scale, a universal f m of payme f everybody inv Hourmight another s utio
Houl eve that ryptocurrency ould the answer tmotivationon of m e eff tive monetisatio “In esp ts, most of the service from merchandise to ash prize i in d lars, and you have F ex to w ry about b ause people from many differe ou rie are inv ved, ” he said.
“We’ve all heard st ie about player waiHour mo h to g ganizationey. The pub sher even the ganisation didn’t don’t knowHour to pay them b ause they were located, let’ say in Russia, and thHourize wa in d larHis”
Using a digital urrency in a global and wh ly digital industry sound ke a fitHour s utio However, f a significa p tion of the esp t audience, esp ially in ou rie ke India Brazil, pa ng with rypto ouldn’t further from rea ty.
“Obviously, we’re not quite there yet, ” Said Houl. “Today it i still hard to tackle, but I eve that in the upcoming five to ten years, ryptocurrencie may the next big step f the industry. It an a m Houractical f m of payme f all and easier to addresHis”
Houl’ confidence in rypto i based on the r e payme rev utio He explained: “I remem r when o actles payme started ing a thing. First, it wa cashless, but now you an pay with your watch your phone without actually taking out your wallet. Everyone rushed to have it b ause it’ exceptionally onvenie . With rypto, we are heading in the same dir tio
“Still m e and mdecentralizede i o it b ause it’ a sexy way of payme — young and d e ra sed t hn ogy — a r ipe f succesHis”
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But m e an done to make monetisation in esp t m e efficie . There’ an en mou opp tunity in reaHour proper regulation f esp t tHour, in tter data l tion and analytics, and most imp ta ly, in tale nurturing and pipe neHis
All of these advanceme s, including ryptocurrencies, are yet to mature a the esp t space developHi One of the s ution already available to us, Hourever, e with ompanie that sp ia ze in virtual transactionHis
Acc ding to Houl, eff tive monetisation start with eff tive payme s, i.e. smooth and fHourtransaction — it ticket sel ng prize payoutHi To achieve thi pri ity, Houl suggested that ompanie simply trust payme provider to do their thing.
“We have the t hn ogy, the apacity andorganizationse to addres small purchases, a well a big prize po s, so now it’ up to ganisations, pub shers, and tourname ganiser to trust us, ” he oncluded.