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Hey guys!
Does anyone here know how much it would cost to run a gaming house on a monthly basis?
I have already read some threads and articles about this and the estimations vary. I am curious if someone here lives/knows someone who lives in a gaming house and could help me out with some numbers.
My main interest would be knowing the following:
- How much do players earn per month? Is it a salary or does the player get tournament earnings?
- Based on the location, rent can vary, but what would be a rough estimate for 8-10 players in the Euro zone? What would be necessary to have in the house? I know you need basic furniture and equipment to practice on, but would there be anything else needed?
- How do you get companies to sponsor a new gaming house? Of course it's all about the publicity a sponsor would get and so on, but how complicated is this process of getting them interested in the first place? Do you think it would be extremely difficult to get a sponsor? If so, why or why not.
I know some questions might seem fairly dumb, but humor me and reply with something worthwhile if you have the time. And yes, I would like to start such a gaming house, but I need some basic knowledge first and maybe even some tips if possible from people who have already been through this. I am a manager by trade and a very enthusiastic gamer. I would not want to be part of the gaming house as a player, rather the manager.
Thanks in advance 
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Let me go ahead and stop you right here. If you can't figure these (extremely basic) things out on your own, then you have no business attempting this venture. I'm not going to do your homework for free.
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@remedium: I am glad you responded so soon with a very encouraging reply full of knowledge and bursting with positivism. Thanks for taking the time to read anyway
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On September 06 2013 04:16 remedium wrote:
Let me go ahead and stop you right here. If you can't figure these (extremely basic) things out on your own, then you have no business attempting this venture. I'm not going to do your homework for free.
Basically this. Unless you're willing to throw money at problems(aka more money than sense), if you have no idea, then don't bother.
If you want ballpark figures though(all monthly, USD), 2-3k for rent, ~1k utilities, 5-10k per month on food, initial investment of around 20-30k in furniture/equipment. Salary I have no idea on.
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5-10k per month for food? What the hell are you eating? Even with 8 members living there, that's an insane cost.
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Unless you're a very rich guy with 8 digits bank account, you shouldn't try something that risky.
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$5/meal (Assuming you don't eat out much), 3 meals a day, $120/day, ~3.5k a month for 8 people. $5k/mo for 8 people seems reasonable. If you want to get takeout every day, obviously the costs rise drastically.
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It costs an entire house.
Get experience managing players and being part of a team first before you try something you have 0 experience in (and requires a good amount of knowledge). No sponsor will approach you if you don't have a history or any credibility.
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You're still setting the price way too high. Something around the area of 3k for 8 people seems fair, because the more people you are, the cheaper the meals get.
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I did manage artists, bands and an independent record label. I am quite sure the general flow of things is the same: provide a space of practice and living, a balanced work-exercise schedule for health reasons, booking of flights for tournaments, marketing and publicity for the game house, etc. I also managed different types of egos, since artists and pro-gamers tend to have that.
Regarding the credibility: if you go with a piece of paper and a memorized speech then of course nobody will want to talk to you. I intend on writing a business plan with specific numbers and expectations to present to the possible sponsors. I don't have the amount of money to start this by myself. I would if I had it though.
I did want just ballpark figures so I know where I can start from. I hoped someone who actually IS in a gaming house would reply, but there still is time. I am not in a hurry. I am shocked though to see that people just instantly put me down just because.
But in any way, thank you for the replies so far. They do help.
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i own and manage velocity esports, an LCS team
i do everything for the team financially, including running the house
if you have some specific questions, i can help you via PM
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On September 06 2013 04:41 Sponkz wrote:
You're still setting the price way too high. Something around the area of 3k for 8 people seems fair, because the more people you are, the cheaper the meals get.
Thought about it more, and you're probably right, although I did the numbers with 10 people in mind. I'd probably set a lower limit at like 4k, with an revised upper limit around 6-8k.
Per person, $10 per day as a baseline, with extra so you can get other stuff seams reasonable to me though(coffee, energy drinks, chips soda, just going out to dinner etc).
Some of the richer NA teams tend to go out for food/order a LOT(TSM/curse), so I wouldn't be too surprised if they neared that upper limit on a per person basis.
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we've got guitars in the thread, i guess it's over now?
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Yeah. I got the answers I was looking for
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Baa?21242 Posts
hold on hold on
where the fuck are you paying 2-3k for rent a month for 8 people
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On September 06 2013 21:40 Carnivorous Sheep wrote:
hold on hold on
where the fuck are you paying 2-3k for rent a month for 8 people
He's getting the house for Cheep.
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5k a month for food is ridiculous, you would have to be buying stuff at the most expensive stores and/or eating out every single day. If you're including booze it makes more sense but still holy shit.
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On September 06 2013 04:39 Lmui wrote:
$5/meal (Assuming you don't eat out much), 3 meals a day, $120/day, ~3.5k a month for 8 people. $5k/mo for 8 people seems reasonable. If you want to get takeout every day, obviously the costs rise drastically.
5 $ a meal? Wtf is food in Canada that expensive? I just finished my lunch, a ready to roast pasta dish from the freezer, and it was 0.80 € (1 $).
Which reminds me, why is a guy from Germany asking guys from the US what the living expenses would be? You would think he knows much better than them what the prices in Germany are.
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On September 06 2013 22:13 Redox wrote:Show nested quote +On September 06 2013 04:39 Lmui wrote:
$5/meal (Assuming you don't eat out much), 3 meals a day, $120/day, ~3.5k a month for 8 people. $5k/mo for 8 people seems reasonable. If you want to get takeout every day, obviously the costs rise drastically. 5 $ a meal? Wtf is food in Canada that expensive? I just finished my lunch, a ready to roast pasta dish from the freezer, and it was 0.80 € (1 $). Which reminds me, why is a guy from Germany asking guys from the US what the living expenses would be? You would think he knows much better than them what the prices in Germany are.
I did not ask American guys specifically, I asked the community...
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Korea (South)11232 Posts
usage of electricity and water would be the moste useful information.
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On September 06 2013 05:02 maximology wrote:
I did manage artists, bands and an independent record label. I am quite sure the general flow of things is the same: provide a space of practice and living, a balanced work-exercise schedule for health reasons, booking of flights for tournaments, marketing and publicity for the game house, etc. I also managed different types of egos, since artists and pro-gamers tend to have that.
You have the general idea, but be careful with one thing. I have no clue what kind of artist you manage but I am pretty sure their maturity level was much higher then you will get in your LoL team.
Beside that, gl to you !
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On September 07 2013 01:51 marcjpb wrote:Show nested quote +On September 06 2013 05:02 maximology wrote:
I did manage artists, bands and an independent record label. I am quite sure the general flow of things is the same: provide a space of practice and living, a balanced work-exercise schedule for health reasons, booking of flights for tournaments, marketing and publicity for the game house, etc. I also managed different types of egos, since artists and pro-gamers tend to have that.
You have the general idea, but be careful with one thing. I have no clue what kind of artist you manage but I am pretty sure their maturity level was much higher then you will get in your LoL team. Beside that, gl to you !
I am quite sure the maturity level is far lower than what I am used to, but with mutual understanding things can be worked out...one way or another 
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The real issue is that you're probably not going to have any sponsors until you accomplish something so if you want people onboard for this they'll either have to win something like MCS or you'll have to pay them all out of pocket until you get those sponsors.
It's easy for teams like TSM and CLG who have their own websites for revenue but unless you're a couple hundred-thousandaire at the very least this seems like an extremely risky investment.
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On September 06 2013 22:05 miicah wrote:
5k a month for food is ridiculous, you would have to be buying stuff at the most expensive stores and/or eating out every single day. If you're including booze it makes more sense but still holy shit.
i just saw this thread so the reply is late but i had to laugh at this.
you live in australia and youre saying this?
5k a month for 8 people is roughly $20 a day per person.
$20/day in australia is like 1 meal. 1 and a half if you are looking for cheap shit.
not sure if anyones noticed but progaming houses in korea either have a full time housekeeper to cook and clean for them so its either paying that persons salary or buying food most days.
a group of young dudes who spend their entire lives playing games generally dont know how to cook for themselves let alone actually go out and do proper grocery shopping.
its also not a matter of simply eating whatever so that you dont starve. having a healthy diet and reasonably balanced lifestyle is still important and so they cant be making instant noodles or other easy to make cheap shit all the time. good luck finding a progamer that knows how to cook a well balanced diet for himself, let alone for all his teammates.
5k is easily reasonable, low even, if you live in australia. 5k would be around the maximum if you were in korea
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EPT
