What are the best practices for sharing revenue in esports business models?

1 Define the value proposition

The first step to creating a successful esports business model is to define the value proposition of your organization, team, league, or platform. What is the unique selling point that sets you apart from the competition? What is the problem that you are solving or the opportunity that you are creating for your target audience? How do you measure your impact and performance? By answering these questions, you can establish a clear and compelling vision for your esports venture and communicate it effectively to your potential partners, sponsors, and customers.

2 Identify the revenue streams

The next step is to identify the revenue streams that you can generate from your esports activities. There are many possible sources of income in the esports industry, such as media rights, sponsorship deals, merchandise sales, ticketing and live events, prize money, fan contributions, and subscriptions. However, not all of them may be suitable or profitable for your specific case. You need to analyze the market demand, the customer behavior, the costs and risks, and the competitive advantage of each revenue stream and prioritize the ones that offer the most value and potential for growth.

3 Align the incentives

The third step is to align the incentives of all the parties involved in your esports business model. This means that you need to ensure that everyone has a stake in the success of your venture and that their goals and expectations are aligned with yours. For example, if you are an esports team, you need to negotiate fair and transparent contracts with your players, coaches, and staff, as well as with your sponsors, league operators, and platform providers. You also need to establish clear and consistent rules and policies for revenue sharing, profit distribution, and dispute resolution.

4 Diversify the portfolio

The fourth step is to diversify your portfolio of esports activities and revenue streams. This means that you need to avoid relying too much on one source of income or one type of product or service. By diversifying your portfolio, you can reduce the risk of losing revenue due to market fluctuations, regulatory changes, or competitive pressures. You can also increase your opportunities for innovation, expansion, and collaboration by exploring new markets, segments, genres, and formats of esports.

5 Adapt to the changes

The fifth step is to adapt to the changes in the esports industry and the customer preferences. This means that you need to monitor the trends, the feedback, and the data that affect your esports business model and be ready to adjust your strategy, operations, and offerings accordingly. You also need to anticipate the future needs and demands of your target audience and create value propositions that meet or exceed their expectations. By adapting to the changes, you can maintain your relevance, competitiveness, and profitability in the esports market.

6 Learn from the best

The sixth and final step is to learn from the best practices and examples of successful esports business models. This means that you need to study and benchmark the performance, the strategies, and the lessons learned of other esports organizations, teams, leagues, and platforms that have achieved outstanding results in the industry. You also need to network and collaborate with other esports stakeholders and experts that can provide you with valuable insights, advice, and support. By learning from the best, you can improve your skills, knowledge, and capabilities in the esports business domain.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?