By Steve Seepersaud
Many college students find video games a welcome escape from the rigors of coursework.
Eric Rice '18 wasn't much of a gamer, so when he wasn't studying, he worked on a way
for video game enthusiasts to make money doing what they love.
During his sophomore year at Binghamton, Rice co-founded Powerspike, an influencer marketing platform that boosts brand awareness, drives sales and creates authentic content featuring video gaming influencers. Powerspike connects gamers looking to monetize their streaming channels with brands seeking visibility.
Rice focuses on Powerspike's technical operations, overseeing web development. In just five years, the company, according to Forbes, has raised $2.5 million in venture funding and connected 1,300 streamers to clients including Intuit, Fireball Whiskey and Express. Recognizing the company's tremendous growth and potential for future success, Forbes recently named Rice and his partners Angelo Damiano and Michael Paris to its 30 Under 30 list.
"I haven't totally processed what this recognition means," said Rice, who is Powerspike's vice president of development. "It hasn't changed much in what we do on a daily basis, but this is huge, and I think in a year from now, we're really going to see a big impact."
Rice met Damiano and Paris through a mutual friend. They were frustrated gamers who had contacted numerous companies in search of sponsorships only to receive nothing but rejections. Instead of continuing to hit their heads against the proverbial brick wall, they found a way to smash through it.
That's where Powerspike comes in. If you livestream video games on Twitch, and want to make money through advertising, Powerspike can help you find the right brands. If you're a company looking for the right streaming personality to help you push products, Powerspike can help with that, too. The company receives a percentage on all deals it facilitates.
"One of our biggest success stories is Fireball Whiskey," Rice said. "We did a campaign called 'Fireball Fridays' and it was a coordinated effort by 100 people streaming on a Friday afternoon and talking about Fireball. It generated millions of website impressions for the brand. We also had a deal with Verizon in conjunction with League of Legends showing how Verizon's new 5G platform worked with streaming games."
Not only does Powerspike provide a quicker pathway for gamers to get sponsorships, the deals are more worthwhile. Affiliate advertising, in which ad graphics are placed on a website, required gamers to constantly drive traffic to a sponsor site. Unless a lot of people clicked on the ad, the returns were very minimal. Influencer marketing with live product endorsements is more lucrative for both parties.
"If someone you follow is talking about the product, it's more real," Rice said. "It's not just 'here's a picture of something.' Instead, you have someone within their own environment, talking about a product or service they enjoy. They describe it in their own way, with their own embellishment. We never ask them to talk about the brands in a certain way. Because it's not scripted, it feels like a friend is telling you about it."
While many businesses have struggled during the COVID-19 pandemic, Powerspike has thrived. If ever there was an activity suited to staying at home, it's video gaming. The company's staff has grown from three to 22, with plans to increase to 30 in the next year as Powerspike expands into YouTube, Twitter and Instagram.
Since its inception, Powerspike's team has been working fully remotely. The group planned on acquiring physical office space early in 2020; however, the pandemic forced that idea to be scrapped. Rice doesn't view it as a negative.
"We have team members from New York to Russia to New Zealand," Rice said. "Not being restricted to a single location has enabled us to find talent we wouldn't have otherwise."