Esports has taken the world by storm, transforming from a niche to a massive industry, with multi-million dollar events and sponsorships forming the backbone of the sector. With this growth, building a successful esports organization or team that can attract funding is becoming imperative for an esports team’s success. However, obtaining funding is not always easy. In this blog post, we will provide a guide on how to obtain funding for an esports organization or team.
Sponsorship
Sponsorship is the most common way to fund esports teams. This method allows organizations to gain financial support from companies or brands in exchange for promoting their products, marketing their brand, or displaying their logos. Sponsorship can provide teams with various perks, such as salaries for players, coaching staff, and trainers, as well as accommodations, equipment, and travel expenses. You should focus on finding sponsors that align with your esports organization or team’s values, audience, and preferences to create a lasting relationship.
Crowdfunding
Crowdfunding is an increasingly popular option for esports teams. This type of funding involves asking fans or supporters to contribute to the team through a crowdfunding platform. Crowdfunding platforms such as Kickstarter, Indiegogo, and GoFundMe offer entrepreneurs, startups, and esports teams a platform to raise funds for their projects. Crowdfunding requires extensive planning, promotion, and an enticing message that appeals to your respective audience.
Investments
Although it is rare, investing in esports organizations or teams is a possibility. Investors who believe in an esports team’s potential for growth and profitability can take ownership of a team, depending on the agreed-upon structure. However, the onus is on the team to prove its worth and maintain transparency at all levels to obtain investments successfully.
Merchandising
Merchandising is another alternative for building revenue for esports organizations or teams. Merchandise such as jerseys, water bottles, mouse pads, and others with your team’s branding can generate an additional revenue stream. By tapping into your fan base, you can create and sell exclusive merchandise that aligns with your team’s values that will not only enhance revenue but also increase visibility and brand awareness.
Advertising
Lastly, advertising can be one of the most straightforward approaches to building revenue for esports organizations and teams. Streaming websites such as Twitch allow teams to run ads during their streams or display advertisements on their social media channels, websites, and newsletters. You can monetize your social media following and create sponsored content with brands that align with your audience and esports team.
Conclusion
Gaining funding for esports organizations or teams can seem like an ultra-competitive sport. Though these avenues we talked about is not all encompassing, they can provide a starting point for teams that are looking to build their revenue stream. A combination of funding methods, which includes sponsorship, crowdfunding, merchandising, and advertising, may also help ensure that esports organizations and teams remain financially sound and grow in the long run.
