Tuesday, March 24, 2009

How Can Someone Earn $25,000 Per Year At Fantasy Sports?

How can someone earn $25,000 per year playing fantasy sports? I'm not going to be able to give all the answers in one post, but here are some reasonable assumptions. For now, let's focus on baseball. Its the sport where I'm an expert and can make some reasonable estimates of achievable levels of performance. We'll assume that we need to make the entire $25,000 each year from baseball...but keep in mind that in reality, we should be able to make a substantial amount of money at other sports too. The same goes for using Draftbug as our sole contest platform - this blog will be about making money playing there, but keep in mind that there are other sites (although not as good of course) where our Pros will be able to earn additional money if they choose. So we're taking a very, very conservative approach here.

Let's assume that we can earn a 10% 'return on investment' on our play at Draftbug Baseball. That's not a particularly conservative estimate when it comes to heads up contests, but large multi-player contests should have enough weak players in them to allow higher rates of return, so 10% seems achievable overall. So how much would we need to play in order to earn $25,000 per year? That's easy - $250,000 per year. With 180 days in the season, that means we'd be playing in a little less than $1,400 of contests per day. Does that pass the 'smell test' of something that sounds plausible at some point in the future? I think so. There are people playing more poker than that each day. And fantasy baseball should be more scalable than poker. While most people's online poker performance drops off substantially as they play more and more tables simultaneously, one should be able to pick lineups for dozens of contests at Draftbug without any real degradation of results.

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