- Web3.0 marketing flips the Web2.0 process marketing on its head
- Most importantly, Web3.0 projects should aim towards “Co-Creation”, and not “Competition”
- Companies having troubles scaling could pivot to quality over quantity
While the term “web3.0 marketing” has been loosely tossed around, it is important to note that everyone is still experimenting.
What works for one project might not work for another.
The evolution of the creator playbook has certainly evolved from Web2.0, and it is difficult to extrapolate the exact strategy required for a product, nor is it possible to “copy & paste” previous Web2.0 marketing gimmicks.
Here, I’ll be covering some marketing trends and basics all creators, or those looking to venture into Web3.0 should know.
A Primer on Start-Ups
Although it is much easier to incorporate a Web3.0 company compared to a Web2.0 company, there are still some basics all founders should know.
Founders should be concerned with 4 main factors before diving into a project, including:
- Entity set-up
- Compensation (Salary + Tokens)
- Hiring Developers and Executives
First entity set-up is a bit more complicated in Web3.0 – in traditional aspects, Web2.0 startups can simply incorporate a company. But for Web3.0, the structure varies quite significantly.
For example, many companies in Web3.0 are centralized, i.e. OpenSea, while some are hybrid or shift over time to progressive decentralization. Best practices are not well defined are are constantly changing.
Admittedly, fundraising in Web3.0 was much easier compared to Web2.0, but best practices still range and are in flux. A lot of projects use tokenization as one of the easiest ways to raise capital – but successful raises are usually highly dependent on your Marketing Strategy.
The Evolution of Marketing
The rise of Web2.0 user-generated content was an astounding feat. As creators built audiences, various monetization paths became available, including brand sponsorships, subscriptions, etc.
Under the traditional Web2.0 model, while creators retain ownership of their work, it is difficult to reach financial success.
A lot of this is due to centralized entities dictating who is successful, as they are able to hammer out the perimeters of their algorithms.
It is a cold, vicious cycle in order to make money – you need an audience, but to get an audience, you need resources to fund content creation.
In Web3.0, the creator book is reversed, such that the concept of tokenization becomes increasingly important.
Community is key.
Instead of building content immediately, most Web3.0 brands will issue tokens via an ICO or other offering to raise funds, such that they are able to create content and grow their business.
In order words, bootstrapping is no longer a problem with Web3. However, this has also translated to more hard and soft rugs in the industry.
Web3.0 Marketing Trends
Web3.0 marketing doesn’t exist without Web2.0.
Strategies and integrating them with new concepts – like tokenization, gamification, and other brilliant ideas can build a hybrid marketing pipeline that leverages Web2.0 ideas.
In Web2.0, customers are acquired via sales and marketing – and therefore firms have to measure our the costs and effort required to both acquire and retain a customer.
Compared to Web3.0, customers acquired include developers, investors, and partners specifically from the community – generally via tokens and community incentives.
This therefore leads to more mercenary capital, especially during a bull market.
Right now, however, brands have shifted their importance to real-utility and real-yield.
Building a Community and an Audience
Building an audience is one of the hardest obstacles for a project.
This begs the question: Where exactly do we start?
In crypto, I strongly believe in co-creation and co-operations as opposed to competitions.
It is important to define your purpose and discover the values of your community – something that attracts other projects to want to partner with you.
First steps including simply interacting with the community to build user-centric personas, in order the platforms they are most present on.
Some good tools for determining this includes
- AMAs (Engagement with community)
- Feedback Forms
- Statistical Platforms (Dune Analytics, etc)
Often, being involved in the ecosystem itself lends more merit your image and makes it easier to understand the community.
Engagement is really important in Web3.0 communities – and quality very quantity for moderators has to be stressed.
On Boarding Experiences
I cannot sufficiently emphasize the importance of this trend – a smooth onboarding experience leads to retention of community members.
For reference, traditional advertisements can only hold user engagement for 6 seconds.
While things in crypto aren’t that bad, getting your first influx of members usually serves as a painpoint. Sometimes, it is ok to not work on scaling, but instead make members feel valued for being “early”.
This could be done through exclusivity, which we are seeing an increasing trend of with POAPS.
You can also go the extra step, sending out personalized invitations, knowing your community better, introducing a blog, and ultimately: Creating a sense of belonging.
Co-creation, once again, can not be stressed enough: leveraging the talents in your community is essential.
Winning marketing tactics are constantly changing and there is certainly no hard-and-fast rule for any project. Everyone is experimenting, and this is why strategic thinkers and business development ( and NOT COLLAB MANAGERS) are becoming increasingly important for any project to move forward.
This is also what makes Web 3.0 marketing is so much fun! “Dead” Matter or skill sets can’t be repeated, there is a need to stay in trend and do research, and hardworking individuals are rewarded on their efforts proportionally as compared to tangible Web 2 aspects.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief