continuing is the hardest step to succeed. this is certain, so like any trade, e-sports organizations are always experimenting with different methods and methods to increase profit and increase their sources.
how do e-sports organizations win compared to traditional sports?
it's certainly not that easy, we've heard over and over again about many teams and organizations that are in bankruptcy or even unable to collect salaries and continue to work, even though e-sports are currently one of the largest entertainment industries in the world and traditional sports are competing in the number of views as well.
but let's start with the problems first, the first is that the average age of e-sports viewers and those who care about them is mostly small and they don't have what some older ages in traditional sports might pay for buying, investing, etc.
In addition, traditional sports are older and are most popular among human populations, so it is easy for institutions or clubs to obtain exclusive contracts, partnerships or advertisements, unlike e-sports, which are mostly broadcast on sites such as Twitch, where viewing is free.
however, we see that e-sports organizations earn millions of profits each year, removing these constraints that we have talked about. so it's time to answer this question, which has puzzled many! let us first analyse the way these organizations think and the most profitable.
three sources of profit in e-sports!
many large organizations prioritize three key sources of profit: tournament, entertainment, merchandise awards and some organizations are finding new ways, but these three are the basis for the majority of organizations.
Tournament awards, which organizations receive from profit partnerships with organizers and publishing companies through exclusive contracts such as Riot Partner, which make the teams participating in them not participate in major tournaments other than those organized by Riot Games or be partners in them and, of course, the center awards they receive from winning the same tournament.
recreational income is the income of organizations through content makers and influencers contracted with the organizations themselves as well as through other partners who organize tournaments or any special event through content makers.
The third of these sources is Merchandise or merchandise purchased by fans of organizations such as clothing, collectibles or even hardware, confirmed by COO Team 100 Thieves team John Robinson:
PART OF THE REASON 100T BELIEVES IN THIS METHOD IS THE ORGANIZATION'S OVERWHELMING SUCCESS IN ITS FIRST FOUR YEARS.
he also said that the organization always made many plans to increase sources of income, but in general it did not come out of the three types that we talked about.
Recently, 100 Thieves purchased Higround, which manufactures keyboards and terminal equipment for Gemmers, and, in the same way, Fnatic manufactures speakers and other gemmers tools such as fnatic react, which has achieved a lot of sales for the organization.
what about the unfamiliar ways in the world of e-sports?
Although relying on three-profit (championship, entertainment and merchandise awards) there are usually some other organizations that are always trying to change the constants such as ReKTGlobal, which markets itself to companies as a service organization and aims to connect customers such as State Farm to secure cars and connect them to the field of e-sports by offering services and connecting the company with audiences of a different kind just as ReKTGlobal has a special division of consulting, brand management and buying media services. Profits of $15 million in 2021, an estimated two-thirds of the general profit organized.
SOME ORGANIZATIONS SUCH AS TSM, FOR EXAMPLE, LOOK MORE AT TRADITIONAL SPORTS AND FOLLOW THEM BECAUSE OF THE CLOSE PROXIMITY TO PUBLIC THOUGHT AS E-SPORTS AND TRADITIONAL SPORTS ARE VERY SIMILAR IN THE WAY THEY MANAGE AND THINK. THIS PROXIMITY NOT ONLY HELPS INCREASE THE WAY PROFITS ARE MADE, BUT ALSO SHOWS COMPANIES OR AUDIENCES THAT HAVE NEVER INVESTED IN E-SPORTS AS AN INVESTMENT METHOD NO LESS POWERFUL THAN INVESTING IN FOOTBALL OR BASKETBALL TEAMS.
in the end, e-sports have undoubtedly proven to be a success, which grows every year from the previous year. in addition to the distinctive nature of e-sports and their great association with internet culture, which removes all cultural and geographical barriers and allows everyone to participate in them and benefit from them as well.
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