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How Much Will I Earn?
How much money will your investment earn you then? The short answer is: It entirely depends on Divergent Tournaments' future revenue. Please take a look at our example calculations, based on market size and surveys we conducted (at the end of this page).
For every $25'000 you inscribe, you will receive 1% of Divergent Tournaments' revenue. The smallest amount you can inscribe is $250 (for which you'd receive 0.01% revenue). Please note that there's a cap on the total amount inscribed of $1'675'000.
There is also a flexible time-limit: Payouts will stop 24 months after launch, if every inscriber has earned at least 10 times the amount invested. Otherwise they will continue indefinitely until that milestone is reached. But of course, within these 24 months you could also make more than 10x and will not be limited.
As we said, how much this will earn you in the end depends entirely on the revenue that Divergent Tournaments is generating. As Divergent Tournaments is still in development, accurately predicting future revenue is not really possible. But we can make a few educated guesses based on the market's potential:
Potential Earnings for Different Scenarios
According to the Blockchain Game Report there are currently about 1 million active crypto gamers (wallets). These are crypto-native gamers, who actively use and trade crypto currencies and NFTs. Then there's the esports market with roughly 500 million enthusiasts. And lastly, we have around 3 billion people (almost half the world) who play video games in total.
Let's make a few sample calculations. And keep in mind that we are not only offering fun gaming tournaments, but a low-friction and low barrier-to-entry chance for casual gamers to earn a lot of money. I also invite you to replace some of the numbers with estimates that seem more likely to you – always do your own research (DYOR).
Note that our only source of revenue are the entry fees collected for tournaments, minus the prize pool, referral bonus and taxes (VAT, withholding tax).
Initial Survey Validates Our Vision
We conducted a first survey of our primary target group, the crypto gamers. These are the results:
- Prize pool: $15'000 is enough to encourage 81% of crypto gamers to join a paid tournament
- Entry fees: 74% of crypto gamers would pay $15 to enter, 47% would be willing to pay $35
- Recurring entries: 63% of competitors would enter tournaments at least once a month, 42% twice or more per month
Scenario 1: Reaching 5% Of Current Crypto Gamers
Users: 1'000'000 x 5% = 50'000
Average entry fee: $25
Average number of participants: 800
Participants entering once a month: 60%
Average prize pool per tournament: USD 11'000
Average referral bonus payments per tournament: USD 2'000
Average number of tournaments per year: 50'000 x 12 x 60% / 800 = 450
Total revenue per year: 450 x 800 x 25 - 450 x 13'000 = $3'150'000
Your share of revenue per year, if you inscribed $1000: 3'150'000 x 1000/250 x 0.01% = $1'260
Scenario 2: Reaching 0.05% Of Current Esports Enthusiasts
Users: 500'000'000 x 0.05% = 250'000
Average entry fee: $25
Average number of participants: 800
Participants entering once a month: 60%
Average prize pool per tournament: USD 11'000
Average referral bonus payments per tournament: USD 2'000
Average number of tournaments per year: 250'000 x 12 x 60% / 800 = 2'250
Total revenue per year: 2'250 x 800 x 25 - 2'250 x 13'000 = $15'750'000
Your share of revenue per year, if you inscribed $1000: 15'750'000 x 1000/250 x 0.01% = $6'300
These are obviously very high numbers that will not be reached quickly. Nonetheless, these examples highlight the enormous potential of our vision.