Thread by @chriscantino

1/ How companies can use NFTs for marketing and community building 🧵

2/ Businesses spent the last decade dialing in their online strategy—relying on digital ads, content creation, and influencers.

But old models are facing increasing cost pressures and competition. Brands are struggling to own and retain their audiences. To be authentic.

3/ Meanwhile, creators figured out how to turn audiences into communities, giving them space and *incentive* to interact: financial and social capital, education, and a place where they belong.

Reddit communities are moving markets. Discord communities are creating their own.

4/ Increasingly, these communities have discovered ways to decentralize and monetize through the technology offered by NFTs. The result is engagement unlike anything we’ve seen before. Unlocking this level of devotion is the envy of every brand.

5/ Brands that aim to activate these networks into economies have two options: 1) partnering directly with the communities, or 2) creating their own.

Both require leveraging NFT technology. Here’s how.

6/ Commercial licensing + partnerships

Many projects grant commercial rights to NFT holders. Recently, Arizona announced it aped into the Bored Ape Yacht Club. Unfortunately, they ruffled feathers by bypassing the community with the announcement.

Right idea, but underleveraged.

7/ But envision limited edition products and marketing campaigns that truly partner—strategically—with NFT communities. Cryptopunks + Spotify? Bored Apes + Farfetch?

Sure, if the communities are offered adequate incentive. These are lucrative and high signal opportunities.

8/ Buying visible assets

Yesterday, VISA bought a cryptopunk for $150k. Their market cap has since shot up more than $5B. This is marketing at its most efficient, at a fraction of the cost of traditional advertising.

Sometimes, it’s the association that counts.

9/ Tokenizing communities

Imagine Nike or Glossier creating communities with special privileges for NFT holders. They could hold events and educational forums, create financial and social incentives, and seed real relationships amongst participants—inspiring fierce brand love.

10/ Tokenizing access

If ESPN hosted conversations between star athletes and NFT holders, imagine how much sports fans would drive up the price of those tokens to join. Or if famous Twitter accounts had weekly office hours for holders. Token value thrives on access.

11/ Tokenizing product and content

Allowing access to exclusive products and content reinforces loyalty and can catalyze the holder’s networks to join as well. Customers become VIPs and a brand’s most loyal advocates, creating organic growth flywheels and feedback loops.

12/ Collectible brand mints

Imagine if Disney leveraged their IP to mint 10k unique NFTs. It would compete with the largest projects on day one, or blow them right out of the water.

Brands with smaller followings? Partner with influencers, artists, and community members.

13/ Rewards + giveaways

Bonusing collectible trophy NFTs to customers can get them over the finish line when it comes to making that purchase. It also supports retention, especially if there is access on the other end of the token.

Want to gamify? Make it a lottery.

14/ Voting + governance

Democratizing decision-making amongst token holders moves the needle from “I love this business” to “I am a participant in this business.” From product development to partner selection, businesses have potential to collect invaluable data.

15/ These models represent the socialization of brand development and marketing, with promising rewards and ownership for communities.

Processes that previously happened behind closed doors will come increasingly come into the light—and that transparency is good for business.