Niche Advisory: eSports

Here at Insightful Accountant, we do a little bit of everything. We let you know about training events, we keep you up to date on the dozens of add-on solutions in the small business advisor world, and we let you know what other ProAdvisors are doing in the space.

In the last several years, there has been a shift. With the help of new technology, and things like AI, accountants and small business advisors are able to automate many repetitive tasks – allowing for more of a genuine advisor role. Accountants are able to help these small business owners grow their business from the inside out.

One ProAdvisor, Juan Rodriguez, is taking that advisor role to a different level. Juan has focused in on the niche of eSports – or gamers – for his practice.

Juan Rodriguez of Tampa, Florida, graduated from Auburn University in December 2018. He has since launched Lodgz Financial. Lodgz is a boutique business management firm for video game streamers and eSport athletes. Taxes, tax planning, bookkeeping, financial advising, savings and business management are all services offered.

eSports describes the world of competitive, organized video gaming. Competitors from different leagues or teams face off in the same games that are popular with at-home gamers: Fortnite, League of Legends, Counter-Strike, Call of Duty, Overwatch and Madden NFL, to name a few. These gamers are watched and followed by millions of fans all over the world, who attend live events or tune in on TV or online. Streaming services like Twitch allow viewers to watch as their favorite gamers play in real time, and this is typically where popular gamers build up their fandoms.1*

Like any competition, these gamers have the chance to earn money for their skills. Juan told us, “Different forms of income include donations, bits, subscribers, advertising, sponsorship, merchandise lines, tournaments, creator codes and affiliate links. Subscribers is one of the more popular forms of income to receive. On Twitch - anyone can subscribe to a streamer based on a three-tier system. Tier one is $4.99/month, tier two is $9.99/month and tier three is $24.99/month. However, if you are an Amazon prime member, you get a free tier one subscription per Amazon account. This is because Amazon owns Twitch. Because so many people have an Amazon Prime account, they are able to use their one free subscription on their favorite streamer." Much like you would follow your favorite athlete on a sports team – wear their jersey or buy their special merch.

Juan goes on to discuss why his clients are so unique. “Their forms of income are extremely different from almost any other profession. So, you must gain an understanding of how they are making their money. Additionally, because there are many young players, most are between 12-30 years old, they don’t understand personal finances that well or need someone to aide them through the process. Along with that, comes understanding sponsorships and team signings.”

“My passion for gaming is what made me want to dive into the financial side of [eSports]. Honestly, when I joined Twitch last summer and began getting plugged into the community, this idea wasn’t in my mind at all. I never even thought I would be able to apply my accounting degree to gaming. I only thought I’d be able to participate in the competitive side.”

Juan was able to quickly turn his passion and knowledge of the industry into his own practice.   He credits his ProAdvisor training for a lot of the practical knowledge that allowed him to grow Lodgz Financial.

“I completed my ProAdvisor Certification and found it immensely useful in understanding small business advising in general. To be honest, when I began, I didn’t even realize that the ProAdvisor Certification covered so much to make you a better advisor. I learned a lot through the course that I’ll be able to continue to apply to my business and clients.”

Juan’s goal in pursing this type of niche client is simple: He knows the business. He knows the games, he knows the terminology, he knows their needs. And with his ProAdvisor training, he has the means to do it.

"The ProAdvisor training was huge in helping me understand how to organize my business. The training does an incredible job of showing you the pieces necessary to run an efficient business and keep track of various clients.” Juan says the ProAdvisor program prepared him and made him feel confident enough to start his own business, taking the time to specialize in a niche and help successful, young gamers find a way to be financially successful.

Juan, and Lodgz Financial, aim to help these young gamers understand their finances a little better. As Juan said, “Because the reality is, if you are running a stream that is generating money, then you have essentially become a small business owner.” And Juan is there to help advise them in any way they need, thanks to his training as a QuickBooks ProAdvisor.

Working within a niche market? Doing something different or unique with your practice? Email us and tell us all about it: info@insightfulaccountant.com. 

1* - AJ Willingham, What is eSports? A look at an explosive billion-dollar industry (CNN, 2018).