Building Partnerships with NFT Projects and Communities

Authors: Pyrs Carvolth, Maggie Hsu

Compiled by: Guo Qianwen, ChainCatcher

The NFT market is constantly evolving, with some larger projects achieving sales in the billions of dollars over the past year, while the influence of other projects is also growing. Some of these projects have attracted attention from both Web3 and traditional companies (ranging from hardware wallets to magazines and denim companies).

However, for companies seeking new partnerships—whether to reach new audiences, experiment with new technologies, collaborate on creative endeavors, or achieve any number of goals—it is often unclear where to start. Some projects (like NBA Top Shot) began with brand backing, but many others started small, initially serving as memos capturing the zeitgeist, experimental artworks, or projects born from bursts of inspiration among friends, eventually evolving into mature brands built on a vast grassroots community of NFT holders.

Just as some traditional customer acquisition frameworks have been upended in Web3 market strategies, builders may need to abandon more conventional "outside-in" business development approaches (like reaching out to BD teams with a perfect proposal) in favor of a more "inside-out" method, which involves understanding a project's mission or vision; establishing genuine connections rooted in community engagement; and conducting in-depth research before pursuing potential collaborations to ensure alignment of ideas. This applies whether you are selling services (like tools or infrastructure) or pitching campaign ideas.

NFT communities are not homogeneous; they are unique networks with significant differences in mission, product, and organizational structure. Any promotional plan should reflect these differences. Therefore, in this article, we provide a framework for exploring Web2 and traditional brands in the context of Web3, as well as Web3 teams venturing into NFT collaborations for the first time. We will first discuss how to research NFT projects (and communities) of interest, and then delve into how to approach and impress potential partners.

1. Cornerstone: From "Know Your Customer" to "Know Your Community"

Behind many popular NFT projects are teams, products, and tens of thousands of NFT holders, and there may also be an artist managing a closely-knit community. When conducting research, these differences should be taken into account, expanding the traditional business practice of "know your customer" to "know your community."

The key first step is to understand how the project operates, its mission, and the people behind it (including creators and their communities). While the founders of most projects and the project's mission set the tone for the culture and ethos of the community, more practical or functional aspects—such as organizational and legal structures—must also be considered to drive external outreach and effectively form partnerships.

Understanding the Project's Organizational and Legal Structure

The first step in understanding a project is to find its founders. They can sometimes be the best entry point, as most NFT projects operate on a small scale and do not require dedicated business development teams. However, reaching out to (or even finding) Web3 founders is often not as straightforward as checking an "About Us" page.

Founders may be anonymous, use pseudonyms, or provide little background information aside from their Twitter accounts. However, even if founders choose to remain anonymous, they often actively participate in the project and community.

The organizational and legal structures of NFT communities vary widely, which can have significant implications for potential partnerships—including how to reach out, the types of collaborations that can be achieved, and other aspects that may be overlooked when collaborating with traditional organizations. For example, a project may rely on a DAO for decision-making without a formal legal entity; more importantly, if a project lacks a formal legal entity, it may not be able to sign certain paperwork, such as non-disclosure agreements.

The organizational structure can inform us about whom to contact and who is responsible for making partnership decisions (which is not always clear given the decentralized nature of DAOs). For instance, a DAO may manage the intellectual property or trademarks of a particular NFT project (A16z Crypto's chief advisor Miles Jennings has written extensively on this topic).

DAO governance may also mean that NFT holders need to vote on any partnership proposals received by the project. In this case, potential partners can actively promote their proposals to encourage NFT holders to vote in favor. On Snapshot (a public voting tool for DAOs), there are many publicly proposed partnerships and initiated votes, ranging from LinksDAO charitable partnerships to MutantCats B2B partnerships. Many business development-related proposals seeking funding from a DAO may need to follow similar steps. For example, NounsDAO provides funding for everyone, including potential partners, who can submit requests through Prop.House.

Snapshot recently approved the LinksDAO proposal to donate 72 hours of secondary sales royalty revenue to the First Tee charity, a youth development organization focused on golf.

In other cases, promotional efforts may not need to start with the creators at all. Individual members of some communities may hold commercial rights to the artwork used in their NFTs, meaning that their owners (or their organizations) can establish separate partnerships. For example, owners of Bored Ape Yacht Club (BAYC) NFTs have independently launched a series of projects; recently, the web3 promoter of Ape Beverages announced a "call for submissions" that would feature community members' apes on its Spring Water beverage cans. Depending on the NFT project, there will be various community members with different goals that need to be researched.

Some projects have external representatives (including agencies like Creative Artists, United Talent, or WME). When collaborating with agents or other third parties, it can be helpful to clarify the roles of each stakeholder. For instance, a talent agency representing a specific artist may also represent the artist's commercial interests, including NFT projects. In such cases (regardless of whether you are pursuing event, marketing, or merchandise collaborations), you will need to negotiate with the agency rather than the artist or project.

Questions to ask and answer:

• Who are the founders or leaders of the project? Is the leadership publicly known?
• Does the project have a formal legal entity?
• Does the project have external representatives (e.g., agents)?
• How decentralized is the decision-making process, and who makes the decisions? Are decision-makers organized in a traditional hierarchical structure, or do they operate as a DAO?
• Does the project have a partnership lead or responsible team?
• Does the project issue partnership grants, and is there a formal process for applying for these grants?

Understanding the Project's Mission

Many founders have missions, such as using blockchain to support a cause or changing the way fans engage with artists. These potential motivations largely shape the outreach philosophy, but (just like traditional business development) those seeking Web3 collaborations should always dig deeper, rather than stopping at marketing copy or generic statements (like "attracting the next billion users"). Not stopping at the most obvious conclusions can add depth to your proposal.

Fortunately, more information can often be obtained through some in-depth research. Due to the open-source nature of Web3, many such projects are subject to public discussion and open development. Those seeking collaboration can join Discord servers (often prominently listed on project websites) and follow the community on Twitter, listening to public audio discussions on channels that include the former two. They can also delve into other content (podcasts, blogs, white papers, or even public governance votes); or attend online and offline events.

Many NFT projects use these platforms not only for casual communication but also to formally establish goals, share milestones, and set expectations for the community. Any specific project plans—launches, events, etc.—that support the project's vision can help you understand where your ideas might add value.

For example, YugaLabs (the original creators of Bored Ape Yacht Club) released a document outlining their vision for Otherside, a "world-class metaverse platform" where community members (Voyagers) can create, play, interact with others, and engage with the land they purchase. Improbable has developed participatory technology suitable for building the Otherside metaverse, allowing thousands of travelers to enter a virtual world and shape the Web3 landscape through storytelling, experiences, and community. This open and decentralized construction encourages independent third-party development of metaverses, products, and services for the community, fostering gradual growth and creating (in a sense) permissionless collaboration opportunities.

Questions to ask and answer:

• What is the purpose and mission of the NFT community?
• What are some key project goals and milestones?

2. Turning Collaborative Ideas into Reality with Smart and Measurable Goals

NFT projects often consist of an artist or small team wearing multiple hats, catering to various interests—community expectations and engagement, creative development, marketing, and more. Having specific, measurable, achievable, relevant, and time-bound collaborative goals helps maximize the project's time.

Establishing Relevance and Authenticity

First, weigh the relevance of a collaboration to the project or community; the key point is what is feasible and what is not. For example, if a potential partner is seeking an exclusive sales opportunity, they may not want to approach a project using CC0 licensing. Since these creators do not hold exclusive rights, they have explicitly chosen to forgo copyright and open their projects to the world.

Most NFT projects consistently focus on their communities, which are often composed of cryptocurrency enthusiasts and early blockchain adopters. Whether for brand collaborations or licensed products, authentic partnerships should engage in dialogue with these communities, encouraging their participation rather than simply printing logos. For instance, VeeFriends and toy company Mattel released a web3 version of the classic 90s card game UNO, combining the game's nostalgic mechanics with rare VeeFriends cards to "bring NFTs to life" (recently, they collaborated with brands Toys 'R' Us and Macy's to further develop this concept).

Mattel's VeeFriends UNO card deck features iconic VeeFriends characters and NFT traits (the right image shows the corresponding epic rare Charm Leopard from OpenSea).

Successful collaborations are built on shared values within the community. For example, when hardware wallet provider Ledger collaborated with The Hundreds, the founder of Adam Bomb Squad, they co-created an exclusive Nano X inspired by the Adam Bomb project. As part of the release, holders received customized wallets based on their respective NFT traits, providing physical security for the community's digital assets while using NFT ownership as an invitation to enhance the reputation that comes with holding Adam Bomb Squad NFTs.

The exclusive Nano X Ledger wallet featuring the Adam Bomb design, with colors designed to correspond to certain NFT "stickers."

Supporting Goal Development with Measurable Outcomes

If a proposal can include clear metrics and measurable outcomes, it will be stronger. Many NFT projects have fairly clear revenue sources, including primary and secondary sales, total merchandise and event sales, and guarantees from licensing. Demonstrating how this collaboration can contribute to the project (such as revenue) or its community will make the proposal more compelling, whether using validated data or general case studies.

Questions to ask and answer:

• Does the project provide utility? Including (staking) rewards, physical/real-life merchandise, events, or participation in games, virtual events, or the metaverse.
• What value does your proposal bring to the project, and more importantly, what value does it bring to the community?
• What is the proposed revenue agreement, and how will it impact the project's existing revenue sources?

3. Prioritizing Outreach: Finding the Right Framework

After researching and setting goals, there is one more step: determining the priority of outreach. We recommend categorizing NFT projects by type (art, sports, music), artistic style, community size, floor price, target audience, utility, etc.; then ranking individual projects based on the potential impact of collaboration, rather than using the same "most popular projects" list as everyone else.

This approach can also facilitate ongoing research. In NFT collaborations, it is not only important to know how to join a community but also to build relationships at the project level. Ideally, those seeking collaboration can align their organizational goals with the goals of the NFT community to establish relevant partnerships that benefit both brands.

While Deadfellaz will certainly appear on many "most popular projects" lists, its collaboration with Wrangler Jeans illustrates the significance of this framework. After launching Wrangler Reborn (a retro product line inspired by its legendary history), the company announced a new partnership with Deadfellaz on Twitter, where their "art and brand" perfectly aligned with Wrangler's creative concept. By conveying the right message to the target audience and showcasing the artistic style, the collaboration between Wrangler and Deadfellaz not only benefited both parties but also bridged the gap between Web2 and Web3, providing tangible benefits to the brand.

4. Building Relationships by Joining the Community

Once priorities are set, action can begin. If a project does not have agents or other external representatives, finding the right decision-makers is not always straightforward. To make contact, it often requires first joining and participating in the community, typically by becoming an NFT holder, so let's explore some ways to engage.

To Buy or Not to Buy

NFTs serve as passports into their respective communities, thus opening up new avenues for communication, engagement, and getting to know potential partners. Of course, holding a project's NFT does not guarantee the formation of a partnership (nor is it a necessary condition for starting to build a relationship), but it can be helpful.

If a team is financially constrained, they can consider (1) pooling resources through protocols like PartyDAO; (2) borrowing funds through lending platforms like Aave, Compound, or TrueFi; (3) using POS financing services like Halliday or Teller; (4) renting assets through platforms like reNFT or Vera; (5) directly contacting existing NFT holders (verified through Twitter) to understand their community situation without purchasing NFTs.

Best Practices for Communication

Regardless of the method used, it is essential to understand the situation before releasing any information. Twitter, Discord, Farcaster, and other project governance forums are open channels for sharing, so be prepared to write effective public documents and respond to questions in real-time (leaving space for outreach will help encourage on-the-spot discussions). Anyone seeking collaboration should adhere to applicable community norms and guidelines and ensure their tone aligns with the general atmosphere of the community. Otherwise, the information may be overlooked, receive lukewarm responses, or worse, damage the partnership.

In Discord, some communities have clear participation rules, such as posting messages to moderators or community managers in the #general channel or submitting proposals in separate channels like #partnerships or #ideas. When it is unclear or impossible to reach moderators or community managers (for example, when individuals close DMs to prevent scammers from contacting them), submitting a support request may be helpful.

Building Connections in Real Life

For those who prefer face-to-face conversations, the crypto industry offers a wealth of events, including dedicated conferences and industry gatherings (and increasingly casual parties in the arts, music, and fashion sectors). Becoming part of a community or checking Telegram groups to explore additional activities related to specific conferences can be beneficial.

Finally, more and more NFT founders are announcing that their communities welcome external investment, and if possible, investors may provide introductions or help establish connections. Regardless of the strategy taken, it is important to have specific goals when starting to build relationships, to have a detailed understanding of the NFT project, and to clearly know what value the partnership can bring to the project's community.

Diving into NFT communities is a novel, powerful, and enjoyable experience that captures the collision of ownership, community, and creative expression. The motivations behind each project (though varied) are often rooted in a belief in technology, confident that it serves a broader purpose. Summarizing your organization's goals and understanding the driving forces behind a specific NFT community can enable you to excel in collaboration, ensuring that this proposal is practical for both you and the NFT project, ultimately creating a unique product.