7 Marketing Strategies for NFT Projects

Author: AshB

Translation: Diamond, The SeeDAO

There is no doubt that the market entry strategies and customer behaviors of Web3 and Web2 are vastly different. Web2 companies invest heavily in sales and marketing teams, as the traditional marketing funnel focuses on creating opportunities, acquiring, and retaining customers.

In Web3, a new model of building businesses has emerged. This model leverages blockchain's NFTs to transform users into owners, replacing centralized leadership teams; the latter make all decisions regarding products and services by using consumer data and free user-generated content. This shifts the marketing approach of Web3 businesses and changes how customers perceive their roles. This article will focus on a specific type of Web3 business, particularly NFT projects. You can find a detailed overview of NFTs here.

So, what does NFT marketing look like?

What practices can we borrow from Web2 marketing?

In a space where projects are collapsing weekly, bear markets are occurring, or both intersect, how should individuals prepare and withstand future challenges?

In short, how do you penetrate the market and convince potential customers to spend their time, money, and energy on your NFT project?

I would like to first provide newcomers to the Web3 space with an overview of the evolution of the internet and marketing over the past 40 years. Overview of the evolution of the internet and marketing in Web1, Web2, and Web3

Source: https://twitter.com/womenof_web3

As a16z states, "Web3 unites network participants to work together towards the goal of advancing the network."
What does this mean for Web3 marketing, especially NFT marketing?

Here are 7 principles to consider when marketing NFT projects:

1. View your customers as co-creators of your brand value. The strength of the community is equivalent to the strength of the brand.

2. Establish a clear and unique mission to inspire and build the community.

3. Once the community is established, appoint brand ambassadors and provide them with promotions and incentives.

4. Treat utility as your competitive advantage in the market, which also serves as an incentive for the community.

5. Leverage key opinion leaders (KOLs) and strategic partnerships that align with the project to enhance brand awareness.

6. Develop a growth strategy while effectively managing social media.

7. Analyze and monitor important metrics, updating and iterating as needed based on feedback.

Let’s break down these principles one by one:

1. View your customers as co-creators of your brand value; the strength of the community is equivalent to the strength of the brand.

Web2 companies examine their customer base through funnel diagrams, focusing on developing customers from the awareness and consideration stages at the top of the funnel to the conversion and retention stages at the bottom.

In Web3, tokens provide another way to attract and acquire new customers. NFT projects can use tokens to entice early users and serve as economic rewards for their contributions to brand building. These early users not only become evangelists, bringing more people into the network and promoting community benefits, but they also:

a. Provide unfiltered feedback loops for the project, helping to identify what works and what doesn’t.

b. Act as beta testers for the project and are willing to patiently assist when issues arise.

With the financial attributes of NFTs, projects incentivize customers to promote, help grow the community, and benefit from it. Community members and customers receive direct incentives, and they want the project to succeed.
"The main transformation is 'making customers owners,' allowing early users and contributors to capture a portion of the value they help create for the platform, ultimately gaining governance and more control. We are essentially giving these companies to users, which is the greatest social transformation we are creating here."
------ Bradford Stephens (Co-founder and Managing Partner of Blockchain Capital)
"Treat your customers as co-creators and partners, creating value together and benefiting from it. Therefore, incentives can be integrated throughout the funnel model. When faced with tough decisions, gather community feedback and crowdsource decisions.

In Web3, the 'go-to-market' strategy transforms into a 'go-to-community' strategy. The community is the core factor in whether any NFT project succeeds. So, how do you effectively build a community?

2. Establish a clear and unique mission to inspire and build the community.

NFT projects need to understand their community-building through a clear mission, identifying why they exist, what problem your NFT project is trying to solve, and why you are the best team to solve that problem. This requires a high-quality community and an appropriate governance model to support the mission.

Creating a manifesto can effectively attract community members and resonate with them regarding the mission and long-term goals of the NFT project. For example, the Meta Angels NFT manifesto states, "The value of Meta Angels lies in its network, the quality of its members, and the stability of our partnerships and programming depth, regardless of market fluctuations. We care deeply about creating real, tangible value for our members, and we will not make decisions based on irrational secondary market trends. Even if we are hit for not following the rules, we will never prioritize hype over doing solid work."

When developing a community strategy, consider 4 key aspects:

a. Community Design

• What is the project's goal?

• What values do you want to convey?

• What unique rituals do you have? (e.g., Wednesday brain teasers)

• What roles are needed to create a self-sustaining community? (e.g., Discord/community manager, marketers, partnership managers, engineers, project managers)

• What is your roadmap and business plan?

• How will you document the community's purpose, vision, values, and roadmap?

b. Community Management

• What roles and access will priority members receive? Will there be member tiers?

• How will community roles receive incentives through the funnel? (including awareness, consideration, conversion, and retention stages)

• How will governance and decision-making be conducted? (e.g., decentralized autonomous organization)

• What support roles will be provided to the community? When and how will they be provided?

c. Community Engagement

• How will you welcome new members to the community? (e.g., pairing each new member with a onboarding buddy)

• How will you cultivate relationships and build trust? (e.g., unlocking special benefits based on the duration of members' contributions to the community)

• How will you connect community members? (e.g., Discord community events, providing rewards for channel promotions)

• How will you encourage community members to fully realize benefits and enhance their overall engagement? (e.g., offering a whitelist spot to mint your NFT? Members contribute to the community by participating in workgroups?)

• How frequently will you interact with community members?

d. Community Co-creation

• Are you organizing projects within the community for members to participate in? How will you organize the work? For example, Web3 guilds are collectives of developers, designers, and thinkers with experience in the crypto industry who share resources (whether knowledge or labor) to pursue a common goal.

• Can community members vote on the plans they wish to support? (Refer to how Decentraland DAO allows token holders to vote on decisions that affect platform content and future operations.)

Peter Yang from Odyssey DAO outlines how NFT projects can build thriving member communities by studying three cases (VeeFriends, Moonbirds, Meta Angels).
"All three projects built thriving NFT member communities by: a) creators committed to providing long-term value for holders; b) the community prioritizing those who care about actual utility rather than those looking to cash out quickly; c) utility bringing people together and encouraging long-term holding."

3. Once the community is established, appoint brand ambassadors and provide them with promotions and incentives.

One of the most exciting aspects of building in Web3 is that projects have the opportunity to deepen relationships with customers. Platforms like Discord allow projects to spend 100% of their time building superfan communities and engaging with their customers. This unfiltered access provides projects with the opportunity to attract innovative sources and co-create plans while obtaining feedback.

In these superfan communities, there are often a few individuals willing to promote your brand and row in the same boat. These individuals are your brand ambassadors.

How to identify brand ambassadors?

A good brand ambassador is typically an independent individual who earns the trust and respect of community members through their ongoing valuable contributions to the community. Therefore, they hold a certain influence within the community.

Brand ambassadors are valuable because they bring credibility to your project and have the ability to turn around negative perceptions. They can also engage those who are still hesitant and guide them into the community.

How to incentivize brand ambassadors?

Projects can take economic or non-economic measures to incentivize brand ambassadors.

1) Economic Incentives

• Additional Tokens ------ Provide them with extra NFTs based on their contributions to the community. This may include a tiered contribution model where highly active ambassadors unlock rare NFTs or other tokens.

• Exclusive Access to Brand Features ------ Allow ambassadors to unlock access to other features based on their contributions. This may include airdrops of artwork, exclusive merchandise, or vouchers for collaborative products.

2) Non-Economic Incentives

• Whitelist ------ Collaborate with other upcoming projects to include ambassadors in their whitelists, allowing them to receive small discounts during minting.

• Social and Public Recognition ------ Ambassadors are often already advocates for the brand, so recognizing their contributions publicly can deepen this relationship. This can be achieved through announcements on the homepage or sharing their work with the broader community.

• Internal Status in the Community ------ Granting ambassadors status or titles within the community can be beneficial. As part of this title, projects can offer ambassadors opportunities to advise on brand strategies.

4. Treat utility as your competitive advantage in the market, which also serves as an incentive for the community.

NFT utility is a way to reward NFT holders as part of the community and give them a sense of belonging. When defining a project's utility, you need to consider the value that NFTs provide to customers and how the team uniquely conveys these services. Set clear and realistic expectations for the project's utility and roadmap. This will attract community members committed to the project mission rather than those looking to arbitrage or demand immediate utility from the project.

Principles of NFT project utility:

a. Access to Exclusive Partners and Advisors (Virtual and Real Life)

Projects can provide token holders with access to exclusive partners and advisors to help them develop their projects. Access can take the form of Discord chats, real-world meetings, or workshops. For example, the utility of Crypto Packaged Goods NFT is that it is a token that "integrates top talent in Web3," with core members including Jaime Schmidt, Chris Cantino, Randi Zuckerberg, and Zeneca, among others. Additionally, holding CPG NFT can provide members with opportunities to talk with leading entrepreneurs and participate in webinars.

b. Access to Products (Virtual and Physical)

Projects can consider collaborating with some Web3 brands or leveraging relationships with Web2 brands to provide token holders with access to a range of physical and virtual products. Surge Women NFT is an example of a project that utilizes partnerships with other brands to provide utility for its token holders. As highlighted on its website, the Surge Passport NFT will include an ecosystem of educational, financial, and Web3 tools, providing token holders with in-game crypto skins. Some of these utility examples include:

• Coupons for purchasing NFT domain names

• Blockchain learning training and advanced masterclasses

• Digital wallet vouchers

• Opportunities to receive development grants

• Access to networking summits

c. Commitment to Future Value (Social Status, Token Value Appreciation)

Projects that rise quickly before launch or are endorsed by celebrities can leverage this appeal to highlight the future value of token holders. For example, owning a Bored Ape Yacht Club (BAYC) means that holders not only have financial assets but also join a community of celebrities. As BAYC states, "When you buy a Bored Ape, you are not just purchasing an avatar or a potentially rare piece of art; you are simultaneously gaining membership in a club whose benefits and products will increase over time. Your bored ape will serve as your digital identity, opening digital doors for you."

5. Leverage key opinion leaders (KOLs) and strategic partnerships that align with the project to enhance brand awareness.

As media becomes increasingly decentralized, you need to collaborate with KOLs and like-minded communities to play a significant role in enhancing project visibility.

What are key opinion leaders (KOLs)?

Key opinion leaders (KOLs) are authorities in a field whose advice is respected by some in that field, and they typically have a target audience specifically for their niche market.

How to contact identified KOLs and establish meaningful partnerships?

Once you identify KOLs or strategic partners that align with your brand, reach out to them via email or social media. Consider the following suggestions:

a. Write a direct and to-the-point letter.

b. Keep it brief and personalized (research the KOL, understand the content that resonates with them, and consider how to make your project come alive for them).

c. Offer them incentives and value. Consider what economic or non-economic value your project can provide in exchange for a partnership.

d. Think about how to capture attention ------ if you can tell an engaging story about the project, you are more likely to establish interesting partnerships.

Utilize these partnerships as part of your social media content calendar. Host Twitter Spaces or podcasts to interview KOLs and like-minded communities, inviting their fans and showcasing your project. Collaborate with these individuals and other brands to offer special benefits or community access to their fans.

How to measure the success of partnerships?

Metrics to track partnership success can be divided into two key categories:

1) Brand Awareness Metrics, representing increased community awareness of your project. This includes:

• Increased followers or community members (e.g., on Twitter, Instagram, or Discord)

• Likes, comments, shares

• Attention

• Traffic

2) Direct Response Metrics, representing community behavior and willingness to purchase. This includes:

• Website clicks

• Number of minted works

• Leads or email subscribers

6. Develop a stable growth strategy while effectively managing social media.

In addition to defining social media concepts with these strategic partners, you should also develop community growth strategies to expand the reach and overall heat of the NFT project. The key four steps in designing and developing strategic plans include:

a. Set Clear Goals

Establish sustainable development goals. For example, short-term goals could include selling out all works, increasing Discord community members, and expanding the number of social media platforms, such as developing Twitter and Instagram simultaneously.

b. Plan Social Content

Establish the target roles for the community and develop social media content that resonates with and engages the community, gaining more creativity, as opportunities are limitless.

c. Build a Content Calendar

Once you have established your primary goals and completed the planned social content, you can build a social media calendar to ensure accuracy and timeliness.

d. Measure and Implement Your Strategic Plan

Once you start consistently publishing social media content, you must evaluate the results of this content to reflect changes in the overall community situation. Long-term analysis can clarify what is necessary and what is meaningless. The next important metrics for measuring social media include:

• User Mindshare ------ The number of times people see the content, determined by impressions and reach.

• Share Engagement ------ User reactions, comments, clicks, and willingness to share the content.

• ROI ------ Conversions and referral links from external sources.

7. Analyze and monitor important metrics, updating and iterating based on feedback and demand.

Some key metrics to track when building an NFT project can be categorized as economic and non-economic.

These metrics can be used to determine the quality of NFTs and the speed of community growth. The different stages of the project (e.g., pre-mint vs. post-mint) will have different metrics to focus on. Given the rapid changes in this field, relevant metrics need to be monitored frequently, and your approach should be updated with market iterations.

Economic metrics include:

a. Estimated Market Value

This can be calculated by multiplying the average price of your NFT over 7 days by its total supply. A higher estimated market value indicates that more token holders may be willing to pay higher prices to purchase NFTs. A recommended tool for calculating estimated market value is: rarity.tools.

b. Transaction Volume

Represents the total demand for NFT collectibles.

c. Floor Price

Can be used to monitor the entry price of NFT collectibles.

Non-economic metrics include:

a. Community Growth Scale on Relevant Social Media

Can be measured by analyzing metrics on Twitter, Discord, and Instagram.

b. Number of Unique Token Holders

This is another metric for the number of NFT collectibles, indicating the perceived reach. The more independent holders there are, the broader the brand awareness and engagement.

c. Quality of Community Engagement

Can be measured through the primary social media platforms used by the project. For example, tracking community activity on Discord:

• Member activity and stickiness

• Attendance at community meetings

• Participation in community governance (what to vote on and the frequency of voting)

• Completion of tasks as per the requirements

d. Establishing New Relationships and Trust Among Community Members

Can be measured through sentiment analysis surveys.

e. Number of Diamond Hands

Refers to the number of holders who have not sold their holdings, indicating the community's long-term belief in the project's vision and utility.

f. Time to Sell Out

Refers to the time required to sell all NFT collectibles.

g. Delivery of Future Roadmap

Refers to the speed and efficiency with which the project team completes and delivers each step of the NFT development roadmap, as well as the speed of visible results for token holders.

As Web3 matures, the role of marketing will continue to evolve. Please remember that these are for reference only and not investment advice; please conduct your own research before investing.