How To Make Money On Esports?

Esports is a growing industry with a lot of potential for those looking to make some extra money. Here’s a guide on how to get started.

Defining esports

The biggest tournaments in the world offer prize pools in the millions of dollars, with the industry as a whole being worth over a billion. So how do you get involved and start making money from esports?

What are esports?

Esports, also known as electronic sports, are a form of competition that is facilitated by electronic systems, particularly video games. Esports often take the form of organized, multiplayer video game competitions, particularly between professional players. The most common video game genres associated with esports are real-time strategy, first-person shooter (FPS), and multiplayer online battle arena (MOBA). Tournaments such as the League of Legends World Championship, Dota 2’s The International, and the Intel Extreme Masters provide live broadcasts of the competition, complete with color commentary, analysis, and interviews with players.

The global esports market

The global esports market is expected to generate revenue of around $1.1 billion in 2019, a year-on-year growth of 26.7%. This is primarily being driven by the increasing amount of investments being made into the industry, with more and more companies looking to get involved in esports.

One of the biggest factors driving the growth of esports is the increasing amount of prize money being offered at tournaments. The total prize pool for esports tournaments was $865 million in 2018, and this is expected to rise to over $1 billion in 2019. This is attracting more and more top players to the scene, as they look to win a share of this prize money.

As well as prize money, another factor driving the growth of esports is the increasing number of people who are watching these tournaments. In 2018, it was estimated that there were around 380 million global esports viewers. This is expected to rise to around 646 million by 2022.

With such a large audience, it’s no surprise that companies are looking to invest in esports. According to a report from Goldman Sachs, it is estimated that the total global revenue for esports will reach $2.96 billion by 2022.

How to make money on esports?

Esports has been growing rapidly in recent years, with more people than ever watching and playing competitive games. And as the industry grows, so too does the opportunity to make money from it. But how exactly can you make money from esports? In this article, we’ll explore some of the ways you can do just that.

Sponsorships

The best way to make money from playing esports is through sponsorships. Sponsorships from companies like Razer, Intel, and Red Bull can range from a few hundred dollars to hundreds of thousands of dollars. The top esports players in the world can make millions of dollars through sponsorships alone.

To attract sponsors, you need to be good at your chosen game and have a large online following. You can increase your online following by streaming your gameplay on platforms like Twitch, and by being active on social media platforms like Twitter and Instagram.

Sponsorships are not the only way to make money from playing esports. You can also earn prize money from tournaments, and some players also earn income from teaching others how to play their chosen game.

Advertising

Advertising is one of the most common ways that companies make money in the esports industry. Many of the biggest and most popular esports events are sponsored by large companies, who use these events as a way to reach out to the millions of people who tune in to watch them.

In addition to sponsoring events, companies also frequently advertise on the websites and streams that host esports content. This is a great way for companies to reach out to potential customers who are interested in gaming and technology.

esportsearnings.com, an eSports marketing and research firm, found that advertising made up 26.7% of all revenue in the eSports industry in 2016. This was reported to be a total of $231 million. They also found that this number is expected to grow to $393 million by 2020, which would be a compound annual growth rate (CAGR) of 22%.

Media rights

Television networks and online platforms are paying ever-larger sums for the right to show live eSports coverage, as well as create accompanying programmes such as highlights shows, documentaries and chat shows.

One of the most valuable properties in eSports is therefore the live broadcast rights. In order to show these to the widest possible audience, media companies usually sell on the rights to show eSports content to different territories.

For example, when Riot Games – the developer of League of Legends – sell the rights to show League of Legends Championship Series (LCS) in Europe, they will also sell the broadcast rights to a number of different broadcasters in different European countries. These might include Sky Sports in the UK, M6 in France and SuperRTL in Germany.

The cost of these media rights has been rising rapidly in recent years. In 2016, Riot Games sold the European LCS broadcast rights to BAMTech – a subsidiary of Disney – for a reported $30 million per year. This was a significant increase on the $2 million per year that they had been paying previously.

With such high sums being paid for media rights, it is no surprise that many traditional sports broadcasters are now starting to invest in eSports. In September 2016, ESPN launched an eSports section on its website and began showing eSports content on its linear television channels. ESPN is not alone – other traditional broadcasters such as Turner Broadcasting (owner of CNN) and Yahoo! Sports have also started to invest in eSports

Merchandise

There are a few avenues you can take when looking into making money off of eSports. The first, and potentially most lucrative, is through merchandise. As with any sport or entertainment venture, people love to show their support for their favorite teams by buying and wearing merchandise. This can be anything from simple jerseys to more complicated gaming headsets or even special edition computer peripherals. If you can design or procure popular merchandise, you can make a killing selling it to eSports fans.

Another way to make money off of eSports is by sponsoring teams or events. In the early days of traditional sports, businesses would sponsor players or teams in order to gain exposure to their target demographic. The same is true for eSports; businesses will sponsor gamers or tournaments in order to reach the largely male, 18-34 year old demographic that makes up the majority of the eSports audience. This can be a great way to get your brand in front of a large number of potential customers.

Finally, you can also make money by investing in eSports-related startups. There are a number of companies that are looking to cash in on the growing popularity of eSports, and many of them are offering investors a chance to get in on the ground floor. If you have some extra cash lying around, investing in an eSports-related company could pay off big time down the road.

Ticketing

The first esports events were held in the early 1970s, with competitions between collegiate teams taking place in the United States. The first intercollegiate event, National Collegiate SpaceWar Championships, was held in 1972. Since then, the industry has exploded with the introduction of professional leagues, tournaments, and competitions.

The global esports market is expected to generate $1.65 billion by 2021, according to Newzoo. And with the growing popularity of esports, more opportunities for monetization are emerging. For example, media rights, sponsorship, and advertising are estimated to generate $1.09 billion this year alone.

But one of the most intriguing monetization opportunities in esports is ticketing. Here’s a look at how tickets are being used to generate revenue in esports and some of the challenges that need to be addressed to maximize this revenue stream.

Ticketing is one of the most direct ways to make money from esports events. Fans are willing to pay money to attend live gaming events and watch their favorite players and teams compete. In fact, ticket revenue is expected to reach $200 million by 2021, up from $96 million in 2017, according to Newzoo.

However, there are several challenges that need to be addressed in order to maximize ticket sales and generate more revenue from this channel. For one, many esports events are held online, which makes it difficult to sell tickets for these types of events. Additionally, there is a lack of standardization in the pricing of tickets for different types of events, which can make it confusing for fans trying to purchase tickets. And finally, there is also a lack of awareness about how and where to buy tickets for some of the smaller or less popular events.

Despite these challenges, ticketing is still a viable option for monetizing esports events and generating revenue for organizers. By addressing some of the challenges listed above, organizers can start selling more tickets and generating more revenue from this channel

Conclusion

Despite the challenging nature of the industry, there are a few ways that you can make money through esports. The most common way is through tournament winnings, which can either come from prize money or crowdfunding. You can also generate income through sponsorships, content creation, and professional coaching. While it can be tough to break into the industry, there are opportunities for those who are willing to put in the work.