How Does Dream11 Makes Money? Dream11 Revenue Model

The Revenue Model of Dream11 is disclosed

Dream 11 is world’s highest user fantasy sports website with major focus on cricket game. When you are playing on such a great website, it is obvious to think how much money it earns. But before jumping into the fact you should know how does they make money.

This money making strategy will be very beneficial for you if you want to start your own fantasy sports application. You can earn more money by implementing these tricks to make more money. Once you understand how they make money then it will be very easy to start earning from your own fantasy website.This article is a simple case study on revenue model of fantasy sports websites. We will discuss different points which are helping them to earn big money.

Many people are still thinking that advertising is the biggest money earning business. But remember and always keep one thing in your mind that service and product selling will be thousands time more beneficial than Adsense.We are not seeing a single advertisement on their website or application then how they made it possible to earn money without displaying a single advertisement?

The Revenue Model of any fantasy sports website is always difficult to understand as all have different earning strategies. So for better understanding of their earnings, we need to think more deeper.Earning money from fantasy website is very different as you have to work according to government policies.

How Dream11 was making money when it was just started?

The starting journey of Dream11 was not very easy. They were not making huge money. Even they were enable to manage their own expenses. This was the reality when they started. The initial year was very difficult for them as they were doing totally different then they are doing today.

They started to make money from advertising. But it’s never easy to set up a big brand without launching your own product. They hasn’t made much money in its first 3 to 4 years. Because they haven’t charged a single money to join a league. When you are not charging anything then you can’t give anything.

It was free to join any league match of Dream11. No prizes were given to the winner of the league. People were just coming to get some entertainment with live match. But it was really not possible to create huge user group without rewarding them some money.

Dream11’s Current Money Making Strategy

Yes, The current money-making strategy of Dream11 is totally different then we saw in early days. They soon realized that Users will not play fantasy matches for long time if they don’t give good rewards for every match they play.

Now the time is to talk about real numbers which is not very difficult to predict. They are making money from commission earned from a league match. Yes, The only thing which is contributing to the revenue is commission earned on hosted leagues.

They charge nearly twenty percentage money of total collected money as their commission. This is very huge amount if you ask me. Because the total price money for a normal grand league ranges from 2 lacs to 3 crore. And now you can calculate the twenty percent of that total price amount. The amount is around 30 to 50 lac. And this amount is for just one match. They cover almost every match.

Dream11 year by year turnover report

The above graph explains the annual earning report of Dream11 fantasy sports website during 2014 to 2018. You can see in this graph that they got sharp rise in their earnings from 2017 to 2018.

The graph shows exponential growth in their earnings from beginning to year 2018. The initial two years were not very great when you talk about their earnings. The main reason for their low revenue in initial year was the adsense. They were just earning money from advertising others products on their application.

The actual growth of their business was just started when they replaced their free service with paid leagues. The life of their website entirely changed after their successful journey in paid fantasy leagues.

Dream11 Makes Huge Money From Grand league

If you are playing grand league then you can imagine how much money they are earning. There are many leagues in Dream11 where user comes to play paid fantasy match. Out of many leagues, The revenue generated from grand league is hundreds time more than other league types.

The success rate of grand league is also above 90 percent. Almost all the grand leagues are filled before the deadline. Grand league gives more revenue than other leagues as the total amount collected is also very high.

Grand league is the hottest part of their business as winning grand league gives grand money. They & user both earns highest commission & prices in grand leagues.

Dream11 Earns Money by Selling it’s User’s Data to Other Companies

The graph of their annual earning is getting huge hit year by year. So one can assume that one source alone cannot make it possible to gain in billions.

More then 40 million user have been reported to use their app. Whenever they register on their application, they had to give some important information like Name, Address, Email, Contact Number etc. All these informations are very crucial for any business.

This is not done yet because they will ask you to submit your PANCARD and Bank Account details if you want to withdraw money from their platform. PANCARD and Bank Account details are very important because once they are misused, they can ruin your entire life.

The value of user data is very high in Current market as the success rate of product companies is day by day increasing. These companies buy user data from companies like Dream11. We are predicting a good earning from selling their users data.

Dream11 Recruits Highly skilled professionals who increases their earnings

The employee of every organization are the key reason behind their success. Daily fantasy sports comes under internet category. Every year they hire quality and experienced workforce for their website.

They spend healthy amount to make a group of experienced & qualified employees. They are the true believer of employee welfare. Their office environment is also very cheerful and entertaining.

Do you know why it is essential to recruit highly skilled professionals for them? Dream11 is a fantasy sports websites which gives live result of players point. They are not using any integration from any live score application. All these work is done by their team manually. Their team manually enters point for every minute. They are working 24 hours because they cover all matches of all regions.

Extra curriculum activities are the part of their office activities. Providing best facilities to employees is their main goal. If you want to become a machine for making money then you really have to work hard to care your employees. Because a happy employee’s productivity is always better than a normal employee.

Free Entry is also contributing to Dream11’s Revenue

You feel obligated to play more matches if you get free entries. They notice it over and over: Promotional events like free entry in leagues are huge moneymakers, even though logic would seem to dictate that users would lose money.

If we win some amount in free entry to a league match then we think about playing in paid leagues and as a result you are contributing to their revenue.

When it comes to free entry then we think that only user will get benefited from it but we all are wrong.Because free entry is given to those users who are not playing for a long time. If few of them wins by free of cost then their interest of playing fantasy matches will again start and they will again start playing. Actually this promotional events are created to increase more revenue by fooling user by the name of free entries.

In Dream11, Only one free entry is given to selected users but almost 20 percent user join with more then 3 teams. And finally they get more revenue by free entries. Remember, Free entries are only given to those users who are away from their website or application for a long time.

Dream11 Makes Some money from refer & earn scheme

Note: This article is created to know how and how much money Dream11 creates from its users. This Revenue Model is not created by taking original data from their staff so don’t get into data related confusion.