How To Monetize Esports?
This guide will teach you how to monetize esports by following these best practices.
What is esports?
Esports is a form of competitive sport that is played using video games. The most popular genres of esports games are first-person shooter (FPS), multiplayer online battle arena (MOBA), and real-time strategy (RTS). Esports has been growing in popularity over the past few years, with tournaments being held all over the world.
A brief history of esports
The earliest known video game competition took place on 19 October 1972 at Stanford University for the game Spacewar. Stanford students were invited to an “Intergalactic spacewar olympics” whose grand prize was a year’s subscription for Rolling Stone, with Bruce Baumgart winning the five-man-free-for-all tournament and Tovar and Robert E. Maas winning the Space War duo competition.
The rise of esports in South Korea began with the formation of the Korea Esports Association (KeSPA) in 2000. KeSPA was founded with the primary goal of promoting and regulating esports in South Korea. This allowed professional teams and players to be officially recognized and receive governmental support. Major League Gaming (MLG) was founded in 2002 with the intention of holding gaming tournaments throughout North America.[47] The Cyberathlete Professional League (CPL) was founded a year later in Richardson, Texas. Both organizations held multiple events annually, each having varying requirements for players to participate.
With esports growing rapidly both in terms of popularity and prize money, companies are seeking to capitalize on this trend by investing directly into esports companies or esport teams, or indirectly into publishers or platforms that support esport leagues through advertising investments.
What are the most popular esports games?
The most popular games in esports are currently first-person shooter games like Counter-Strike: Global Offensive (CS:GO) and Overwatch, multiplayer online battle arenas (MOBAs) like League of Legends and Dota 2, and battle royales like Fortnite and Apex Legends. But there are many other games that have found success in the esports realm, including card games like Hearthstone and Magic: The Gathering, fighting games like Super Smash Bros. Melee, real-time strategy (RTS) games like Starcraft II, and more.
How do people monetize esports?
There are a few ways people in the esports industry make money. The first way is through sponsorships. Players, teams, and leagues can all get sponsored by brands that want to be associated with esports. The second way is through prize money. Players can win money by competing in tournaments and events. The third way is through Twitch streaming. Twitch is a live streaming platform where people can watch gamers play video games. Streamers can make money through donations, subscriptions, and ads.
Sponsorships
One way to make money in esports is through sponsorships. Big companies are willing to pay large sums of money to have their name associated with successful teams and players. The most popular form of sponsorship is through advertising. Companies will pay to have their name, product, or logo displayed on a team’s jerseys or on banners at tournaments. Another way companies can sponsor teams is by paying for the team to use their equipment. This is common in traditional sports like Formula One racing where teams will use a specific brand of tires or engines. In esports, this usually takes the form of a computer manufacturer paying a team to use their computers or a gaming chair company paying a team to use their chairs.
Another way players and teams can make money is through tournament winnings. This is the equivalent of a traditional athlete winning prize money at a competition. The amount of prize money available in esports has grown exponentially in recent years as more and more organizations have begun hosting tournaments with ever-larger prize pools. Players that consistently win tournaments can make a very good living just from tournament winnings alone.
Finally, players and teams can also make money through streaming platforms like Twitch and YouTube Gaming. Players can stream themselves playing games and viewers can donate money to them or subscribe to their channel for a monthly fee. Streamers also make money through advertisements that are displayed on their channel. The most successful streamers can make hundreds of thousands of dollars per year just from streaming alone.
Advertising
Advertising is the primary way companies make money from esports. Some of the biggest deals in esports have been for advertising, including a $100 million deal struck by Twitch with Coca Cola.
Companies see value in advertising to the esports audience because it is a highly sought-after demographic. Esports fans are typically young, male, and have a lot of disposable income. They are also very engaged with the content they are watching, which makes them valuable to advertisers.
Other ways companies make money from esports include sponsorship, merchandise sales, and ticket sales.
Media rights
Media rights are the most common and straightforward way to generate revenue in esports. Brands can pay to have their logos featured on team jerseys or as part of in-game advertising, while broadcasters pay fees to secure the rights to show matches on television or streaming services.
There are a few different ways that media rights deals can be structured. In some cases, brands will pay a lump sum for a certain period of time, while in others they will agree to share a portion of the revenue generated from sales of tickets or broadcasts.
The value of media rights varies depending on the popularity of the game, the size of the audience, and the exclusivity of the deal. The largest media rights deals in esports have been worth tens of millions of dollars.
Game publisher fees
Most of the revenue in esports comes from game publisher fees. In order to have their game featured in an esports tournament, game publishers will pay the organizers an upfront fee. The game publisher will also agree to share a portion of the revenue generated from in-game items with the tournament organizer. For example, in Dota 2, Game publishers Valve agree to give the tournament organizer a portion of the revenue generated from the sale of “compendiums”. These are virtual items that fans can purchase that unlock certain in-game content, such as special effects for character avatars, access to statistics and leaderboards, and so on.
Merchandise and tickets
One of the most common ways that esports teams monetize is through the sale of merchandise. T-shirts, mouse pads, and other items with team logos are all popular among fans. In addition, many teams sell tickets to their matches. This is especially common for larger tournaments. For example, tickets to the annual League of Legends tournament Worlds sell out quickly every year.
How can I get involved in esports?
Many people are interested in getting involved in the esports industry but are unsure of how to get started. There are a few different ways that you can get involved in esports. You can either participate as a player, coach, or commentator. You can also work behind the scenes in event management, marketing, or team management.
As a player
Players can join professional teams, or compete in tournaments to win prize money. they can also join well established amateur leagues, which often have their own prizes and sponsorships. In recent years, many colleges and universities have begun to offer esports scholarships.
As a coach
Coaching is a great way to get involved in esports. It’s a way to share your knowledge and love of the game with others, and it can be very rewarding. Coaching can also be a great way to make some money.
There are a few things you need to know before you start coaching. First, you need to be competent at the game you want to coach. This means having a good understanding of the game mechanics and being able to teach them to others. Secondly, you need to be able to communicate effectively with your players. This means being able to give clear instructions and feedback. Lastly, you need to be organized and have a good understanding of the game’s competitive scene.
If you have these qualities, then coaching may be right for you. To get started, you can look for coaching opportunities on platforms like Twitch and YouTube. You can also contact professional teams or organizations directly and inquire about coaching positions. Finally, you can start your own coaching business by advertising your services online or through social media platforms like Twitter or Discord.
As a content creator
There are a few different ways that content creators can get involved in esports. The most popular way is through live streaming. Live streaming platforms like Twitch allow content creators to broadcast their gameplay to a wide audience. This can be a great way to build up a following and generate income through donations and subscriptions.
Another way for content creators to get involved in esports is through creating video content. This can be in the form of highlights, analysis, or just general gaming entertainment. This type of content is usually posted on platforms like YouTube or Facebook. Creators can generate income through advertising revenue or donations from fans.
Finally, content creators can also get involved in esports by writing articles or creating podcasts about gaming topics. This is a great way to share your knowledge and insight with the community, and potentially generate income through advertising or affiliate marketing.
As a tournament organizer
There are a few ways to make money from esports. The most common way is through sponsorships, where brands pay to have their name or product associated with a team or player. Other ways include advertising, selling merchandise and game developers selling in-game items.
To make money from esports, you need to have a large and engaged audience. This can be achieved by organizing tournaments and streaming matches online. Some tournament organizers also sell advertising space on their website or during their events.
If you’re interested in getting involved in esports, the best way to start is by finding a game that you’re passionate about and getting involved in its community. You could start by streaming matches online, becoming a coach or analyst, or creating content for a fan website.
As a brand
There are a few ways to get involved in esports as a brand. The most common and effective way is to sponsor an existing team or organization. This will give you a direct connection to the fans and players, and will help ensure that your brand is associated with a winning team.
You can also sponsor individual players or events. This can be a great way to reach a specific audience, or to support a particular game or tournament that you are passionate about.
Finally, you can create your own esports team or organization. This is a more involved process, but it can be a great way to connect with the esports community and build your brand from the ground up.
