If you are an Esports enthusiast, then you once have wondered how Esports teams make money. These teams just don’t rely on tournament winnings, and thus come up with different avenues to make money in the Esports industry. In this article, we will comprehensively explain the different sources of income of an Esports organization.

Tournament Winnings

The first and foremost source of making money in the Esports industry is by winning tournaments. And currently every year there are millions and millions of dollars up for grabs. But it is not a consistent method of making money, since your team will not always win competitions or yet always qualify. The tournament winners are reliable on an amateur/semi-professional tier. Yet, at the highest level, relying on these wins is not enough since there is no way that your team will win every competition.

Moreover, to win a tournament, you need to have the best players on your team. And these highly talented players are never willing to join infamous teams. The best teams in the world are aware that even winning the biggest competitions is not enough to sustain an organization for the long term. Thus they also need other ways to make money.

Sponsorships And Partnerships

Owing to an increase in the viewership of professional gaming, teams don’t have to rely on tournament prizes alone. Since sponsorships play a vital role in generating revenue for the team. Brands have understood the power of Esports and provide plenty of benefits to the teams in the hopes of reaching a wide variety of audiences.

Some of the biggest partners in the Esports industry are hardware and electronic companies. However, companies like Coca-Cola and G-Fuel have also sponsored Esports teams and tournaments. Analytics platform Newzoo has recently predicted that in 2021 half of the revenue of the Esports industry will consist of sponsorships.

Streaming And Content

Esports teams don’t make all of their investments in professional players. They are also on the hunt of signing renowned streamers to their lineup. Singing a streamer may not directly benefit the team but the teams do it for the audience. The best streamers in the world have millions of viewers, so it is quite easier to market the product to a consistent audience. So the streamers serve as ambassadors for both the team and its sponsors

Merchandise

If you are a very popular team then the merchandise is a very reliable source of income for your Esports teams. Some of the best Esports organizations like Cloud9 and FaZe Clan have become household names in the gaming industry. So they can sell their merchandise to their passionate community. So if you want to make your Esports team then you should keep in mind that never limit your company to one dedicated resource. Instead, focus on different avenues to generate more income.

As these streams of income expand, there are high chances that Esports athletes can aim for a secure future. We are also confident that the avenues of income will continue to increase in the future.