REAL Reasons To Invest In An Esports Org Today
As the world of esports is slowly but surely creeping its way into the “mainstream”, more and more celebrity-type investors have been investing in or purchasing esports organizations, which sounds great.
Unfortunately, as we’ve hit “buzzword velocity”, the immediate focus has seemingly shifted to making headlines instead of profits.
So if you’re considering buying into a team, here are a few reasons you should do so. Some of them might seem like common sense, and it’s because they are. But let’s not pretend common sense is common. Have you seen the recent Presidential debates?
- You’re making a long term play, have a vision on where you’d like to take the org, and are willing and able to eat some losses on the journey there
If you’re trying to get in now so that you can make a ton of money and exit quickly, you’re in the wrong game. Most organizations aren’t going to be profitable for a while, and if they are, they’re not THAT profitable for it to be worth the kind of money being dumped into esports right now.
However, if you’re a big picture thinker playing the long game, you’ve got a vision of where you’d like to take things, and the financial stability to take some lumps and losses along the way, then an esports org may be for you.
This seems to be the most common reason (I hope) for recent headline-making investments.
2. It’s a cheaper way for you to access a key demographic that you’re spending a lot of time/energy/effort/money attempting to reach now.
There are countless brands spending fortunes in other markets trying to reach the ideal demographic that esports represents — and this is a reason I can’t believe major, household brands haven’t flooded the scene still.
If you’re a lifestyle brand, for example, looking for 16–25 year old males, and you haven’t been able to capture their attention in other traditional locations (like TV, the thing 16 year olds don’t watch anymore), this could be an investment that could serve multiple purposes over the years, but could solve the problem of garnering the eyes and ears of your target demo at a reduced cost.
Think “name sponsor”, but permanent — the “Old Spice: SmellLegendaries”. Okay, maybe not that name, but you get the idea.
3. You’re an early adopter and don’t mind paying a possible premium to get in now, before some of your competitors.
If you’re sitting there right now and you know in your gut esports is going to be huge (spoiler, it is), and you know that your peers/competitors are either already looking, or will soon be looking to jump in…. AND you don’t mind paying a bit of a premium to have a semblance of a competitive advantage, your speed to entry can be that advantage.
Be aware, you might be spending more than you should, but if you’re someone that likes to pave the way instead of stepping into an established space, go for it now. The longer you wait, the greater the chances things get settled and you become another member of the pack, with little ability to influence the larger direction.
There are a lot of businesses and business people that perform poorly in the “red oceans” of competition, yet are very successful at extending their lead when they have a lead to start with. If you’ve historically been more successful when you’ve gone first, it’s time to ink a deal.
4. You LOVE competitive gaming (esports), and have enough money that you don’t care if you make it back.
This is what I call the “rich person hobby” scenario, where I usually reference horseback polo as an example. Seriously, have you seen the kind of money that gets spent in polo? Follow-up question, have you ever WATCHED polo?
So yeah, if you’re very wealthy and love esports, it’s a great hobby for you to have, full of passionate fans that would love your support. You can do a lot of good, and if done correctly, would be a welcome addition to the esports world.
To close, I’d like to point out that there are obviously many more reasons than listed here, and in most cases, there will be a mix of some of the reasons above, and possibly a few other new and interesting ones.
It’s a wild ride, especially now that we’ve hit “buzzword” velocity, and I’m super excited to see where it goes. Everyone should expect a bit of turbulence in the coming months, as the big fish enter into our sea and likely flush out some of the smaller fish, but don’t doubt the future of esports, It’s extremely bright.