We all love to watch esports matches. We also know that teams win prizes as a result of the tournaments we watch.
However, tournaments are not the only way esports organizations make money. Today, we will look at how esports organizations make money.
Big esports organizations sign sponsorship agreements with many brands. These agreements are quite beneficial for both the parties involved .These agreements often contribute to the recognition level of both the brand and the organization thus becoming. It also becomes a vital source of income for them.
Another monetization method is through streaming. Esports organizations sometimes deal with former esports players and sometimes with different streamers, and earn money through the streams. In these streams, they can both get donations from the fans and reach more income with different sponsorship agreements or discount codes.
As esports tournaments are organized, thousands of people come to the esports arenas to watch and support their favorite team. Of course, esports organizations also get a share from these ticket sales. This is another source of income for them.
Esports organizations also sell various products to their fans. Fans can buy different products of their favourite teams. Also, in some games, fans can purchase items such as in-game cosmetics to support their favorite teams. Teams are given a profit share from these products as well.
It is quite difficult to make a profit for the teams that do not ride high. When esports organizations start to become successful, they attract the attention of investors. This is one of the most valuable and most important sources of income for esports organizations.
Of course, one of the most prominent and most important income sources of esports organizations is their success in tournaments. The more successful they are, the more money they make. I guess none of you have forgotten the $18,208,300 grand prize that Team Spirit won at The International 10. As a matter of fact, esports organizations that are successful in the tournaments they participate in both win excellent prizes and expand their sphere of influence in all other factors mentioned above. As a result, when a brand sponsors an esports organization, the first thing they look at is the success of that organization in tournaments. This also increases the number of fans of the organization, increases the viewership, etc. In short, it increases the revenue from all other factors, think of it just like a rolling snowball.
In short, as esports organizations become successful, many other factors come along and they start to make money. Those who have managed to make a name for themselves attract the attention of investors and sponsors. They continue to grow, and as their fan base grows, they also profit from merchandise and streaming.
Are you an esports fan as well? You can watch the matches of your favourite players and teams on Luckbox and place bets on them.