When eSports organizations aren’t participating in tournaments, they earn most of their money from promotions and branding. Currently, in the gaming community, many prominent organizations have worked a lot on building their brand values. Of these, orgs like FaZe Clan and 100 Thieves have dominated the market with merchandise and promotions.
For many teams, the prize money from tournaments doesn’t form a large part of their net worth. Instead, the merch sales, advertisement, sponsorships, and other aspects contribute majorly to their bank accounts. Hence, teams like 100 Thieves and FaZe Clan majorly focus on their brand. They have pioneered in creating lifestyle brands in addition to the gaming side.
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Owners and CEOs of these teams have revealed the revenue generated by previous merch drops. The amounts are astonishingly high, pointing towards the feasibility of this model. Moreover, it also highlights the dedication of fans towards their favorite teams.
FaZe Clan earned $2 million in 24 hours, $500k in 5 minutes from two drops
In a recent interview, FaZe Clan CEO Lee Trink talked about how the sale of merch has contributed significantly to their earnings. Lee said in two distinct drops, the organisation earned $2 million in 24 hours and $500K in 5 minutes, respectively. He attributed this to the increase of street wear culture among gaming fans.
In a recent interview FaZe CEO revealed the Org has had drops sell as much as $2 million in 24 hours, or $500,000 in 5 minutes
The only other team with public reports of this is 100 Thieves
Apparently selling hoodies is a good business model
— Jake Lucky (@JakeSucky) December 20, 2020
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Lee said, “drops have really kind of behaved in a hypebeast fashion.” He also added that this has only been possible due to the level of passion but fans. Moreover, he also shed some light on how they design their merch.
He said that they have in-house designers who are “on the bleeding edge with street wear culture” and these people help them design their drops. He also said that they divide their merch into two groups, the first being the traditional sports apparel and the second being street wear.
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Merch sales have been one of the biggest reason why FaZe Clan has gained a massive boost in their annual valuation. Forbes estimated that FaZe’s revenue jumped 19% as compared to the previous year, taking their total net worth to $190 million. The only other organization to replicate such success is Nadeshot’s 100 Thieves.
The trends show how fans love to wear their favorite team’s logos on their clothes as a badge of honor.
