Online gaming or iGaming industry is foreseen to increase its revenue to 2.6 trillion U.S Dollars by 2023.
Innovation paved the way for the introduction of online gaming, and the advanced graphics, real-life experience, and convenience it offers continue to attract those who are looking for entertainment and leisure. As more and more players embrace online interactive games, there is also an increasing number of operators investing their money in the online gaming business, which includes mobile, social, free-to-play, and pay-to-play multiplayer gaming. These main categories contribute to the upward trend of global online traffic and the clear indication that it is a profitable investment.
While starting an online gaming business is seen to be a sound investment, it is important to do extensive research to better understand the market that will lay the groundwork for you to identify your target market, consumer habits, effective advertising strategies, and competitors and their successful business approaches. By analysis, you will be able to identify the trends and potential stumbling blocks that may affect your management of the business in the long run.
To avoid miscalculation, there are pivotal steps or sound practices that will serve as your strong foundation in establishing your own online gaming business.
1. Carry Out an In-Depth Market Research
There are several market leaders in the iGaming industry, including Ubisoft, Electronic Arts, and Supercell, and it is essential to recognize their way of developing their social or video games. Thereby having an idea of the type of services clients should receive and if there are industry gaps that you can fill.
Conducting market research also involves collecting data about your business’s target audience and customers’ demographics, behavior patterns, motivations, and goals. Having the complete details about your prospects and clients will lead your business to figure out what stimulates them to take action.
To help you build a stronger business, here are some types of market research:
- Exploratory Research is about discovering company problems, areas for potential growth, and alternative courses of action through open-ended interviews or surveys to learn more about the people you are surveying.
- Specific Research is the next step to be taken after the exploratory research, and it aims to address the previously identified issues or opportunities by interviewing a specific portion of the target audience.
- Public Sources are the free available sources such as government statistics or public market data that you can read to help you with analyzing your competitors.
- Commercial Sources have priced market reports that will give you industry insights.
- Internal Sources are the historical data that your business organization possesses to help you figure out the needs and wants of your core audience.
2. Determine Who Deserves to Be Your Technology Provider
Developing the software by your skilled in-house team is a brilliant idea, but since you are just starting out choosing the right team might take you time. The best solution is to decide which firm with the right skill sets should you choose to provide you with iGaming Software. When choosing the company, it is best to select the one that offers quality software at a price that your budget meets. It is also necessary to evaluate whether the technology provider has extensive knowledge of the iGaming industry and online game launching.
A trustworthy and good software provider has the following services:
- Gaming management system
- Premium quality back-end tools
- Payment gateways that have a multi-currency support
- Easy to navigate front-end
- Access to well-known online games and events
- Customer support
3. Build a Website
A website that has an appealing design and a user-friendly interface gives a first and long-lasting impression to your clients. It is one factor that represents the quality that your business brings thereby helping customers decide whether to trust your business or not. Your website should have that world-class quality that will make your customers think that the online games you provide have the same exact quality which most players want.
Below are important factors to consider when creating a website:
- Players use different browsers; thus, your website has to be compatible with all the available browsers, especially the popular ones as it will result in attracting more audiences into your niche.
- Always update and secure your website to avoid spam.
- Check dead links or orphan links to avoid frustrations from customers. Either update them or delete them depending on their level of importance.
- Make sure that the website is SEO friendly for your business to get high traffic.
- Optimize the website for mobile users.
- The website should load fast. Avoid adding too much or unnecessary graphics and elements.
4. Choose a Business Structure
Do you prefer your business to be owned by one or more individuals or by shareholders?
A Limited Liability Company (LLC) is owned by one or more individuals and can apportion its equity stake to its members regardless of the members’ financial contribution to the company. It allows all members to receive an equal share of the profits. A corporation, on the other hand, is free to sell a percentage of the company to its shareholders, who can transfer shares to another owner or purchase more stock.
Forming a business promotes accountability; hence, it would be more feasible to engage in negotiations when your business requires:
- Additional capital
- Technology provider
- Gaming License
5. Acquire a Gaming License
Prior to launching your website, find out the necessary licenses that are required in your jurisdiction and accomplish all of them as your business can not legally operate without those licenses.
It is important to note that different industries have different types of jurisdictions. For the gaming industry, it has different jurisdictions categorized into four namely:
- Countries that control iGaming within their area
- Countries that have banned iGaming
- Countries that have monopolies
- Countries that have no set of rules
How can you get a license?
- Communicate with the right authorities in the country where you are going to operate your business.
- You may have the option to be a licensee by having a partnership with your iGaming software provider
- Choose a white label solution.
6. Find a Payment System Provider
Carefully choosing your payment system provider is of critical importance to avoid fraud which can destroy the reputation of your business. Partner with a provider that has established its reputation in the business industry; one that offers secure payment, multi-currency transactions, and fraud detection.
To guarantee that the transactions are going to be handled with efficiency, have a discussion with the person in power to understand more about the details. If you are fully satisfied with their explanation and offer, both of you should agree to form a valid contract that contains all your preliminary discussion and their offer. This is to avoid any problems that may arise and disrupt the gaming experience of players.
Further, research other payment methods that your target audience prefers as not all are comfortable paying with their credit card, and with the advent of technology, there are different payments that other players like to use such as wire transfers, cryptocurrency, and e-checks. Accepting other payment methods will increase the chance of your business to have more customers.
7. Plan a Solid Marketing Strategy
An effective marketing strategy will ignite the fire in your business. Its main aim is to attract your target audience to visit your website and be your customers. Your business should stay relevant in the competitive market otherwise other businesses like yours with sound marketing strategy will be the ones on top, and your business should avoid this at the earliest opportunity.
How can your business stand out from the rest?
- Create a marketing team that has a strong background in marketing your business to players in the iGaming industry.
- Only sell quality games. This will build customer satisfaction which will later result in trust and loyalty.
- Assign the content writers in your marketing team to create valuable articles or blogs such as how-to’s that will help gamers have a better experience when navigating your platform.
- Optimize your content to be SEO friendly in order for your website to be easily searchable.
- Run a Google Adwords Campaign to gain more traffic to your website.
Building an online gaming business requires a great deal of work as there are many requirements that are necessary before starting, but after becoming accustomed to all the particulars you will be able to successfully launch your business in a short period of time. It is important to bear in mind, however, to follow all the steps mentioned above for your business to be unparalleled in the world of online gaming.
After establishing your business, continue with implementing a solid marketing plan and games with advanced graphics. Always remember to leave a long-lasting impression on your prospects and clients in everything that you do.