My passion project - Part 2
The COVID-19 pandemic created an influx of players. I implemented a subscription-based pricing model with Stripe but I never ended up using it because I ended up pivoting the business model. Popflash, a competitor, also implemented a subscription-based model because their Cost of Goods Sold (COGS) reached $8,000/month in server fees which was unsustainable.
I wanted to build an Esports company. Instead of serving individual players, I started exploring how to cater to tournament organizers. The idea was to automate the management of tournaments and have tournaments organizers bring in the players. As a company of one, this approach would allow me to focus on building instead of marketing.
A few notable moments when pivoting:
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Since I had competed in corporate leagues since 2015 and knew exactly the pain points for small-medium tournament organizers. I pitched my services to CEA.gg and they bought in for their 2020 Spring season which started ran from March to June. I iterated on Scrim Tournaments throughout their season and listened to feedback. It's surprising to find how the most valuable feedback and reporting of issues is not always direct. I had to watch player streams and look at chat logs to discover them myself.
First up, after a hard-fought and wildly entertaining @CSGO season, #Microsoft @Office ultimately took the throne! Their \$2280 Grand Prize will go on to benefit @CPCharity!
— Corporate Esports Association (@CorporateEsport) June 9, 2020Microsoft Office, my previous team since I left the company, would go on and win the CEA 2020 Spring Season -
Earlier this year, my team had competed in two tournaments, one of them which we won. We saw first-hand the troubles and inefficiencies of Faceit's tournament services. A few teams dropped out of the tournament because of the long delays between matches. It appears that the organizers didn't have any other options but to continue using Faceit. I pitched my services but they needed support for their EU players and I did not have plans for expansion into the EU then. I now see this as a missed opportunity.
Congratulations to our Wingman Tournament winners - Team BrettGmbH (Karuso33, STRNK1_1) for EU and Team Dduk Guk (csxr, irok) for NA!! We would like to thank all players, spectators, @SquishyScot and @FACEIT themselves for making it such a success!
— Mapcore Hub (@MapcoreHub) January 6, 2020Winning my first tournament of the year. -
It took a few weeks of iteration for the service to be "self managed". I define that term as not needing any manual intervention on my part for the service to run smoothly. By April, I started going out on weekends without worrying about things blowing up.
- I generated $160 monthly recurring revenue (MRR) within the first week of pivoting. My operating expense ratio (OER) at that time was about 25%. I knew that if I could onboard more tournament organizers and have a shared pool of servers, the expense ratio would significantly drop. This was validation that my pivot was in the right direction.
The tech stack which I briefly covered in part 1 helped me build with confidence. I designed scrim.app with the goal of being easy to maintain for myself, low cost, and highly available & consistent. Thanks to serverless functions, the Firebase platform, and many open source projects - I am able to achieve just that in a short period of time.