Good article on LinkedIn that details what to consider when investing in eSports. As Matt Hamilton (@ThatsMrBio) pointed out, eSports “…can be a tricky industry.” A statement that especially applies to its commercial side. Currently we’re all aware of the tremendous worldwide following that professional, competitive gaming has garnered and continues to groom. However, the path to monetizing this reach and influence isn’t straightforward.

Most commercial outfits have heard about eSports, and its potential, but are still on the sidelines. My take on why? Less financial stability and long-term prospects for the teams and players involved. The main revenue generating channels available for traditional sports teams don’t directly apply to eSports: Television, licensed goods and ticket sales/stadium revenues. Without these cash cows, or significant alternatives, the majority of eSports organizations are not yet considered viable businesses.

Business development is still a huge hurdle. Aside from sponsorship, we’ve yet to see notable revenue streams develop within the eSports ecosystem. This matters since viable businesses partner with other viable businesses, not just trends. If organizations are struggling to break even financially, the path to attracting partners won’t be easy.

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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed