Checkmate To Success: How Chess.com Captured 100 Million Users And Rs 8,300 Crore In Revenue
In today's tech-dominated world, online businesses are widespread, with gaming and artificial intelligence leading a revolutionary wave. This trend has resulted in a significant influx of money into the tech industry.
You would be surprised to know that many such companies rake in plenty of moolah putting conventional jobs to shame.
One such game called Chess.com has done the unimaginable. It has achieved impressive success, with an annual revenue of over $100 million(Rs 8,300 crores approx).?
The platform boasts a user base exceeding 100 million and employs over 400 remote workers. Remarkably, over a million users are in the coveted Legend League. The popularity of chess as a game is evident, making it addictive and widely considered the best in its category.
The Remarkable Story Of Chess.com
In 2005, when Erik Allebest and Jay Severson established Chess.com, they could not have foreseen the remarkable path their enterprise would follow. Boasting over 280 million monthly website visits, the creation of more than 250,000 new accounts daily, and a daily tally of 10 million games played, the Chess.com story is truly extraordinary.
Erik Allebest, a chess enthusiast and graduate of BYU and Stanford Business School, founded Chess.com after previous ventures in chess-related businesses. Frustrated with the competitive nature of online sales, he pivoted to create an online chess community prioritizing discussion. After selling Wholesale Chess for $2.5 million, he invested in the domain Chess.com and partnered with college friend Jay Severson to establish the world's premier online chess community.
How Does Chess.com Make Money?
Chess.com makes money by letting people use its main features for free but showing ads. If users want, they can pay to get rid of ads and unlock more features. This way of making money works well because the game of chess has been the same for a really long time, so it's not easily disrupted by new technology or big competitors.
The key advantages that make this company unbeatable are:
The Name - For those new to online chess, Chess.com stands out as the go-to option and consistently appears as the top search result for the keyword "chess."
The Distribution - Chess.com is a powerhouse in online chess searches, garnering more than 280 million monthly visits. While its organic reach is commendable, the majority (over 80%) of its traffic comes directly, highlighting a devoted user base and strong product engagement.
Chess.com Is A Great Example Of A Successful Business With The Right Approach
Chess.com stands as a beacon of inspiration for entrepreneurs and startups, showcasing that with a strategic approach, a distinctive domain name, and a potent blend of distribution and network effects, transforming a niche passion into a global phenomenon is achievable. As the company forges ahead, embracing expansion, innovation, and achieving new milestones, the realm of chess is set to reap the benefits.
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