Fantasy sports platform-Dream11 business model

Dream11 business model
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Fantasy sports are online games in which the participants create a virtual team comprising of real players. Dream11 also kicked off as an Indian fantasy sports platform that allows the contestants to earn. Now, it is one of the emerging gaming platforms that are embraced by Indian sports lovers.

Today, we will study the working structure and strategies opt by Dream11 for heightening its business of online gaming from the sub-content below:

1. About Dream11

2. Dream11 business model

3. How Dream11 earns?

4. Dream11 marketing strategy

About Dream11

It is an online application-based platform that allows the users to play various featured games by building a team and if the user's team prediction is good then he will earn rewards in form of money. Some of the games that are listed by Dream11 are cricket, football, basketball, baseball, NFL, handball, and hockey.

It was started in the year 2008 by Harsh Jain & Bhavit Sheth with the aim of connecting millions of users with an online sporting experience that they love to play. Also, both of them were big fans of fantasy football games that initiate an idea to build a related platform for the Indian community.

Now, it has more than 50 million active users who have registered themselves as an online player and are passionate to build their imaginary team for winning prizes. Also, it a well-known fact that Indians are very fascinated to share their opinion and knowledge about cricket, and with the help of Dream11 one can implement one's knowledge by choosing ideal team players by deeply engaging with predictions.

Winning on Dream11 is simple as making a good selection of players, spectating them, and earning rewards for your great selection.

Dream11 business model

Dream11 business model works on a simple algorithm of providing a user-friendly platform for the participants so that they can create their team and can track the performance easily. One can download the app and compete with their friends or even just speculate the match.

It provides you an opportunity to create your team before the beginning of the match which can be cricket, football, etc. Talking about cricket then each participant is given 100 credits and you can team up the cricket players for the tournament. And every featured cricket player is listed with certain credits and within your credit limit, you have to manage the complete team of 11 players.

Apart from team selection, one gets an option to choose a captain and vice-captain. These two works as your point boosters, for instance, if the captain is playing well your points will elevate by 2x (twice) and if your vice-captain is playing well then your points will grow 1.5x (1.5 times).

A participant can modify its team anytime before the commencement of the match and after the beginning of the contest, you can only watch how is your prediction working?

So, the business model is just a one-way user and application interaction that facilities an amazing platform, allows the participants to predict the best as per his knowledge, and wait for the final results till the end of the match.

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How Dream11 earns?

It allows the users to earn money but only after receiving a small investment as an entry fee. Its revenue making strategy is pretty simple and easy to understand. As allows a large number of participants to apply for a paid contest and when the entry fees in paid by every contestant, it uses that pool amount (the sum total of all the participants) for generating prizes for the top contestants.

And charge some 25-30% of the total pool money as its revenue for the single contest. Let us derive more clarity on how Dream11 earns with the help of an example- Suppose it charges Rs. 50 as its entry fee for the paid contest and 1000 users participated in that contest. The pool amount for the contest sums up to Rs. 50,000 from which it charges 25-30% as its revenue that is equal to Rs.12,500- 15,000. And the rest amount is distributed among the participants as per their points.

This clearly outlines a very profitable business model of Dream11.

Dream11 marketing strategy

Most of the expenses are incurred by this Indian fantasy sports platform over its marketing strategy. Its marketing cost further includes sponsorship expenses, advertisement costs, and various forms of online marketing campaigns.

Celebrity endorsement- Dream11 is known for creating its brand image by celebrity endorsement. You might have watched online advertisements in which various renowned cricketers are seen promoting the brand by saying that one can easily build the finest team and earn money by playing cricket on their platform.

Customer review ads.- You might have seen some TV advertisements in which customers/users review Dream11 in which the user depicts that I have earned a big amount by playing on this online gaming platform. This trick really motivates the viewers and creates a positive impact on the brand.

Referral marketing- It provides an option to refer the app that pays the referring party Rs.100. Apart from this, it works as a marketing strategy that creates the word of mouth among a large number of audiences.

Event sponsorships- It looks really attractive to find some brands displayed at sporting events. Dream11 has also showcased its branding at IPL cricket 2020 that brings the audience attention to its brand name.

Take away

From this reading, we develop a deep insight into the Dream11 business model, Dream11 marketing strategy, working structure, and revenue model. Please feel free to ask any query.

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