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Why Sorare's Business Model is so successful?

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Sorare’s Company Overview


Sorare is a global fantasy football platform where users can collect, trade, and play with officially licensed digital player cards. Based in Paris, France, the company was established in 2018 by co-founders Nicolas Julia and Adrien Montfort. Sorare has redefined the world of fantasy football by integrating blockchain technology, creating a unique gaming experience that combines the thrill of fantasy football with the tangible value of digital collectibles. Partnered with over 100 football clubs across the world, including Juventus, Paris Saint-Germain, and Atletico Madrid, Sorare provides an immersive experience for football enthusiasts, offering them the opportunity to manage their own teams, participate in various leagues, and earn rewards based on the real-life performance of their players.

Business Model:

Sorare operates on a unique business model that combines elements of fantasy sports and digital collectibles. The platform issues limited edition digital cards representing football players, which users can buy, sell, or use to build their fantasy teams. The scarcity of these cards, verified through blockchain technology, provides them with inherent value. Each card is tied to a real-world football player, and that player's real-life performance determines its performance in the game. This creates a dynamic, interactive experience where users can engage with football in a new and exciting way. The platform also hosts weekly competitions, where users can win prizes based on the performance of their teams.

Revenue Model:

Sorare's revenue model is primarily based on selling digital player cards. At the start of every season, Sorare issues several new cards for each player, which are then sold in auctions on the platform. The price of these cards can vary greatly depending on the player's popularity and performance, with some cards selling for thousands of euros. In addition to the initial sale, Sorare also earns a transaction fee on every secondary sale on its marketplace. This model allows Sorare to generate consistent revenue while also benefiting from the growing popularity of digital collectibles and fantasy sports.

https://sorare.com/

Headquater: Paris, France, EU

Foundations date: 2018

Company Type: Decentralized

Sector: Information & Media

Category: Internet

Digital Maturity: Digirati


Sorare’s Related Competitors



Sorare’s Business Model Canvas


Sorare’s Key Partners
  • Global licensed clubs
  • Gamers
  • Game developers
  • Data providers
  • Affiliation programs (e.g. “Refer a friend”)
Sorare’s Key Activities
  • Marketing
  • Product development
  • Platform
  • Design
  • UX
  • Customer support
  • Legal
  • IT operations
  • Operations
  • Software engineering
  • Business development
  • Partnerships
  • Tournaments
  • Growth
  • Recommendations
  • Data Science
  • Integrations
  • Customer success
  • Community management
Sorare’s Key Resources
  • Virtual cards
  • A Game to Connect all Soccer Fans
  • One very limited and rare card
  • Platform
  • Community
  • Leagues and competitions for each tier
  • Decision-making algorithm
  • Virtual currency
  • Network effects
  • Brand
Sorare’s Value Propositions
  • Revolutionising the fantasy football market by merging it with the e-card game culture
  • The only game to combine cards and a global fantasy football game
  • For users: the pleasure of representing their favorite team and players worldwide
  • For clubs (Liverpool, Dortmund, etc.): the chance to generate a new income stream and get more fans engaged with the team on a global level
Sorare’s Customer Relationships
  • The beautiful game
  • Alone or with friends
  • Global fantasy soccer game on blockchain
  • Blockchain
  • Ratings and perceived Value
  • Trust
  • Self-service
  • Customer support
  • Community
  • Social channels
Sorare’s Customer Segments
  • Fans
  • Hipsters
  • Gamers
  • Collectibles fans
  • Soccer's organizations (clubs, leagues, sports federations)
Sorare’s Channels
  • Sorare.com
  • Social media (reddit, discord, telegram, and twitter)
  • Platforms
  • API
Sorare’s Cost Structure
  • Marketing
  • R&D
  • Legal
  • Salaries
  • IT infrastructure
  • Logistics
Sorare’s Revenue Streams
  • In-app purchases
  • Commission on transactions
  • Card sale auctions
  • Card trading fees (standard card 2%, Rare card 5%, Super rare card 10%)
  • Card creation fees
  • Advertising

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Sorare’s Revenue Model


Sorare makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Transaction facilitator
  • Auction
  • Credits
  • Affiliation
  • Advertising
  • Digital
  • Online marketplace
  • Peer to Peer (P2P)
  • Auction
  • Two-sided market
  • Virtual reality
  • Ecosystem
  • Digital transformation
  • Disruptive trends
  • Experience selling
  • Innovative retail banking model
  • Customer loyalty
  • Customer data
  • Distributed Autonomous Company (DAC)
Analytics


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Sorare’s Case Study


Sorare's CASE STUDY

Sorare, a brainchild of Nicolas Julia and Adrien Montfort, epitomizes the confluence of advanced blockchain technology and the age-old fanfare of football. Since its inception in 2018, Sorare has transformed the landscape of fantasy football, offering a novel blend of gaming and digital collectibles. Operating from its headquarters in Paris, France, Sorare connects football enthusiasts from around the world, making it not just a game but an immersive community experience.

The Genesis: A Vision Realized

Four years ago, as die-hard football fans and tech aficionados, we embarked on a mission to revolutionize the engagement between fans and their beloved sport. The birth of Sorare stemmed from a robust vision—bridging the gap between blockchain technology and fantasy football. The enabling factor that distinguished Sorare was our ability to merge a popular pastime with the tangible value of digital collectibles, all while maintaining a strong foothold in blockchain security. Having partnered with over 100 iconic football clubs globally, including powerhouses like Juventus, Paris Saint-Germain, and Atletico Madrid, Sorare rapidly ascended to become a trusted and celebrated platform. Partnering these clubs not only amplified our brand but also strengthened fan engagement, creating a win-win situation for both the clubs and us.

Decoding Sorare’s Innovative Business Model

Sorare operates on a distinctive model that blends fantasy sports with unique digital collectibles. Here's a deeper dive into how our model functions: - Digital Player Cards: At the heart of Sorare are our digital player cards. Utilizing blockchain ensures that each card remains a scarce, verifiable asset. Fans can purchase, trade, and collect these cards in our dynamic marketplace. - Fantasy Football Integration: The unique characteristic of these digital cards is their functionality within a fantasy football framework. The real-world performances of football players directly influence the value and efficacy of their digital counterparts. For instance, a stellar performance by Cristiano Ronaldo translates into a valuable and highly functional digital card on Sorare. - Weekly Competitions: Our platform hosts various competitions that let users compete for rewards based on their team's performance. Whether a user has Messi, Ronaldo, or any rookies, their success or failure depends on real-world game outcomes.

An Insight into Sorare’s Revenue Streams

Revenue generation at Sorare is multi-faceted: - Sales of Player Cards: Each season, we release a series of new cards through competitive auctions. Depending on player popularity and performance, these cards could fetch anywhere from hundreds to even thousands of euros (Sorare, 2023). - Transaction Fees: We also capitalize on secondary market transactions, earning a fee ranging from 2 percent on standard cards to 10 percent on super rare cards. - In-app Purchases and Advertising: These supplement our income, enhancing our ability to provide quality service and remain agile in a demanding market.

Sorare's Unique Value Proposition

Our core appeal lies in the manner we revolutionize fantasy football through digital collectibles. Unlike traditional fantasy sports platforms, Sorare users have actual ownership over their cards, contributing to a heightened sense of value and engagement. The pleasure of representing favorite teams and players on a global level, and the opportunity for football clubs to cultivate new revenue streams while boosting fan engagement, sets us apart in the crowded market.

User Engagement: Life-Changing Emotional and Functional Needs

Football is not just a sport; it’s an emotional rollercoaster. Here's how Sorare meets user needs: - Social Impact: By fostering an engaged, global community, Sorare offers users a sense of belonging. The platform's referral programs and social integrations on platforms like Twitter and Discord amplify this connection. - Emotional Fulfillment: Our meticulously designed and aesthetically pleasing digital cards provide fans with a blend of fun and entertainment, satisfying their emotional cravings. - Functional Benefits: Beyond entertainment, Sorare connects and integrates fans with a common interest. The platform ensures seamless usability, up-to-date information, and varied gameplay options, ensuring an engaging user experience.

Disruptive Business Patterns and Customer Loyalty

In terms of business patterns, we employ several strategies that underpin our success: - Auction-Based Marketplaces and P2P Transactions: By adopting auction-based sales and peer-to-peer (P2P) transactions, we've created a more dynamic, user-driven marketplace (Statista, 2022). - Digital Transformation and Ecosystem Creation: Our platform is a complete ecosystem, merging virtual reality, customer loyalty programs, and disruptive technologies to transform every user's experience. - Decentralization: Being a Distributed Autonomous Company (DAC), we maintain a degree of decentralization that adds layers of trust and transparency.

Our Active Engagement and Strategies for Growth

Sorare strategically focuses on expanding its community and providing exceptional service. Our activities include: - Marketing and Community Management: Constantly innovating our marketing efforts ensures our brand reaches new potential users. Through community events and consistent engagement on social channels, we maintain high levels of customer satisfaction. - Product Development: Continuous iteration and innovation keep us ahead of the curve. From enhancing our UX to integrating more data for predictive analytics, every development is aimed at enriching user experience. - Partnerships and Growth: Forming alliances with more clubs and integrating affiliate programs like “Refer a Friend” bolster our growth trajectory.

Conclusion: Sorare's Unique Position

In a world overflowing with digital startups and sports platforms, Sorare has carved a niche by amalgamating blockchain technology with the global passion for football. Our meticulous attention to user needs, robust revenue model, and innovative business strategies have propelled us to the forefront of the fantasy football arena. As we continue to expand our network of partners and refine our platform, Sorare stands as a paradigm of how technology and sport can come together to create something genuinely extraordinary. --- Sources: Sorare (2023), Statista (2022)


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