One of the most frequently asked questions we get from potential customers is how to monetize a fantasy sports game. There are numerous ways to turn fantasy sports into a profitable business. This post will provide valuable insights into the different monetization strategies available.
As the fantasy sports industry continues to grow, fantasy sports becomes a viable business venture. In the exploratory phase, we invariably get asked by potential customers how they can make money from fantasy sports, or ensure that their game is a break-even operation.
How you monetize your fantasy sports game depends on:
- Your reach. A large audience makes it easier to get the required number of users to reach your break-even point. Or to generate enough advertising revenue.
- Your audience. Do you target seasoned fans or a broad target audience?
- The region you’re active in. Are people familiar with fantasy sports in your country or region? Or does a lot of education still need to be done?
- The sport. Is there already much use of data and statistics in the sport? Are fans already familiar with it?
It’s important to note that different ways of monetization are more effective for different types of fantasy sports games. Monetizing a fantasy sports game can be a complex process and it’s vital to comply with all relevant laws and regulations.
The key is to find the right balance of monetization methods that will work best for your specific game and target audience. And make sure everything is in line with your overall goal and mission of the game.
Fantasy Sports monetization strategies
Players are charged a seasonal or annual fee to participate in the game.
Example: fantasyleague.com offers 3 season-long packages (Novice, Pro, Legend) for £10, £20, and £30.
Players are charged a one-time fee to enter a league or tournament.
- DPG Media’s Gouden Spelen: enter a team for €9,99 and win prizes
- Daily Fantasy Sports: enter a tournament and pay out the top performers. As the organizer, your earnings are the rake (5-15% of the entry fees).
Advertising and Sponsorship
Advertising and sponsorship opportunities include displaying traditional ads and banners in-game. The big advantage of fantasy sports is that you can bypass ad blockers and do native in-game advertising.
In-game purchases (premium)
Players are charged for in-game items or access to premium features. This can include more advanced stats, additional game features, and in-app purchases for cosmetic items.
- FFF Manager premium packages
- Mon Petit Gazon: in-app purchases (live ratings $2.99, WTF suitcase $1.99, no ads $1.99, pre-game report card $1.99 etc.)
Commission on player transactions
Some fantasy sports games charge a commission on transactions such as player trades or free-agent pickups.
Create and sell merchandise such as t-shirts, hats, or other fantasy sports-related items that can generate additional revenue.
Fantasy Sports Betting
Allow players to place bets on the outcome of the game to generate revenue through gambling.
Players purchase virtual currency to participate in the game, buy in-game items, or gain access to premium features.
Offer fan engagement opportunities such as meet and greets, live events, or other special experiences to generate revenue.