A playbook for consumer brands entering web3

Transcript

GN GM welcome to web3 Academy your one trusted source to capitalize on the next big phase of the internet don't get caught in the hype cycle I'm Jaybird joined by my co-host Raul and we believe that web 2 brands are going to change the world that's why we're carving a path for doers to confidently build and invest in web tree sit I'm so grateful to be live when that intro is made well welcome to this show everybody we are breaking down today the blueprint for Brands joining webs three we're going to dive into some examples of some specific Brands Raul why don't you uh kind of give us the lowdown be talking

about today yeah for sure so over the years we've seen you know Brands a lot of Brands like Dolce Gabbana Nike Porsche who just like Porsche enjoying the web 3 space in 2021 and we've seen Tiffany joining last year we've seen Mercedes a launching an nft collection just a few weeks ago and we're just gonna you know take a step back and look at what each of these Brands did over the years to you know establish a blueprint of what worked what didn't work so that you know what to do when you're launching a water initiative so today we're gonna talk about the blueprint and about the Playbook that we've learned over the years and give you that blueprint and Playbook so I mentioned a few Brands here Nike lochin

Cabana Porsche Mercedes Lamborghini all of these have one thing in common and that's their consumer Brands and that's our Focus for today we have kind of like B2B Brands doing watching stuff like IBM for example they're more Technical and they don't really appeal to the masses and we do that's what we're here to teach about that's where we're going to focus on the consumer Brands today the future of social media is here and that future lives in web 3 on top of lens protocol web 2 social platforms are broken and right for disruption you see the epicenter of social media is the creators and yet they are the most neglected web 2 platforms like Facebook Tick Tock and Instagram are all essentially robbing creators of their worth creators are a new type of

entrepreneur forming new types of businesses yet with web 2 platforms creators don't own their content to their profiles and that's their product in business instead they are tied to the platforms they choose to create on well just like how crypto is freeing us from Banks web3 is freeing us from these centralized platforms on lens protocol creators own their content own their profile and even their social graphing followers in the form of nfts this allows you to move freely from one social application to another with your content profile and followers moving along with you lens protocol enables self sovereignty for your social graph and enter operability across the internet at Webster Academy we believe this is the future of Social and that's why we've partnered with lens to ensure

that the path of social media is heading in the right direction visit lens.xyz to learn more today what's up y'all viewers we're seeing signs on chain of the very early stages of a crypto Bull Run there's a big wave coming and we want to make sure you're on it Now's the Time to capitalize on the opportunity how you ask by starting to practice consistent dollar cost average buys into strong network-based assets like ethereum and Bitcoin however when buying please make sure to use a trusted exchange our newest sponsor by D5 is a reliable exchange that offers you a platform to turn your Fiat into crypto they also offer awesome rewards allowing you to earn up to 2 800 for

completing easy tasks like setting up two-factor authentication and verifying your identity if you're eager to get into the market get started with buy defy Now by visiting bydfi.com that's bydfi.com or clicking the link in the description below so let's start off with with just saying that you know launching in web 3 is just like a more complex process that takes a long time and it's you know it's made up of a few components you have a pre-launch you have the launch you have you know all these things that you need to figure out over the years but let's just start off with a simple thing that anyone can do and that's what we're going to list in this podcast well Jay why don't you start off with the communications

channels where and what channels should any brand use to announce their web 3 Endeavors and you know start to build a community yes a great question I think what we've seen that's been very interesting is we've seen multiple examples take Adidas take Porsche take Puma examples of existing brands starting a new Twitter account that is focused on their web 3 efforts now I'm not saying that you need to do that but here's what you need to understand if you are a brand and you want to get into web3 you need to have a communication Channel through which to build community and reach your I'm going to put this in

air quotes your web3 audience your web3 followers okay and there is a lot of risk if you're an existing brand of doing that through your existing channels so if you're Nike and on your Instagram or your Adidas and on your Instagram which has millions of followers who are not there for nfts they're not there for web3 they're not there for digital assets they're not there for decentralization and all of a sudden you start talking about web 3 stuff you risk your image you risk your reputation and that risk is too big of a risk so what we see is this many of these brands starting a new account now where is web3 where is the web3 audience

it's on Twitter it's in Discord so those are the two channels that we see primarily being used by Brands they're either starting a new Twitter account or they're using their existing Twitter account if they know that that is an account that maybe doesn't have a ton of followers or doesn't have a lot of risk of you know the potential of cancel culture really if you start talking about web three step because we know that unfortunately within the mass audience within most of the market most people don't like crypto and nfts and that's okay they don't like it because they don't understand it we don't need to get into that right now they will

like it and they will understand it in the future because this is inevitable and this is all coming blockchain will be in all parts of businesses if you're a brand and you're thinking about jumping into web3 one of the first things you need to do and part of your plan is what are the communication channels and you need to I would recommend Twitter and Discord your Discord is most likely new highly unlikely you already have a Discord so that's great because you know that a new Discord is going to be the place where it's only going to be around your web3 brand now if you're going to do Discord you better make sure you have the time to do it and you better make sure you have Community moderators that understand and how to keep it engaging a lot of Discord servers start off with

tons of hype and tons of excitement and then die down so that's something you got to make sure you have people behind it and then Twitter obviously makes a ton of sense and personally I like the model of starting a new Twitter that is focused on web3 especially when you can do you could have Puma Puma Doty but actually let's take Puma as an example Puma did not start a new Twitter they took their existing Twitter and they turned it into their web through Twitter it's got like two million followers on it and they just change their their name to puma.eve and boom that became their web 2 channel for communication so the thing that we see is if you are going to what Puma didn't do was they didn't

start talking with web3 on their Instagram they didn't start talking about other Tick Tock they actually purposely only talk about it on their Twitter so you either start a new account and if you're gonna do that do it in Twitter or use your existing account but do not spread it across all of your accounts keep it to one platform and make that your web 3 communication platform Raul I'm curious what do you think do you like the idea of starting a brand starting a new Twitter account or do you think they should use their existing ones yeah so before I answer that question I just need to say that don't launch on Instagram people on Instagram hate crypto I don't hate Twitter from what I'm seeing it's just definitely stick with Twitter and

Discord as you said yeah I had this discussion with tip I'm in our Discord the other day I was just kind of like thinking about whether or not brands should you know create this extra account to me it just seems like a branch off from their brand and they're like okay let's test the waters here and see what what's up what's going on and stuff like that I think they're not like really serious about what they're experimenting with they're like okay let's just Branch this off and if this goes out we won't get too much hate the reason why this is happening and I think like T-Pain make me realize that this is a good thing is we gotta realize that people Behind These companies are like very well paid individuals they don't want to risk their jobs they want to

take this step and they want to innovate for this company but they don't want to lose their job so I think it's overall it's a good play to you know create this extra account like Mercedes with their Mercedes next and like Nike did with drush and artifact by acquiring artifact actually yeah I think that's that's the right play but as he said for Puma who like maybe if they don't have a huge social media strategy or plan I think Puma didn't have a huge social media plan they should just use that for web3 if they're not using it at all so it depends on on the brand but yeah I think overall they should make an extra account just to not get canceled because as he said cancel culture is huge nowadays I think that starting an extra account makes sense in the beginning

just because of the risk yeah like I'm looking at Puma right now Puma's two million followers on Twitter like don't say that they don't have a social media plan they got a massive social media plan that they got two million followers on Twitter but what they're doing is they're leaning into the fact that they know Twitter is where web3 audience is and they're right now on their account they've got it pinned post that is all about the release of their shoe with uh lamello which is an upcoming drop and you need a mint pass in order to get this so they're really leaning in to web3 in their Twitter which is that's a big risk to me I mean I haven't gone through and seen if they're like I'm curious I'd be curious to know what sentiment is like are people embracing

this so there's two million followers excited about that that's a risk click I just think it makes the other reason why I like starting an account just for your web 3 initiative is it gives you the opportunity to ran that account in a very web three-way like I love what Adidas did Adidas went out they bought it and then they made Indigo hurts they created an entire character they gave their ape a name and then they made a Twitter profile for Indigo Hertz and he is the face of their web 3 initiatives and you couldn't have done that on their existing you know you couldn't put a 48 Yacht Club tfp on Adidas Main Twitter account but you can do that on their web 3 Twitter

account which is only going to attract the board API Club audience and we're going to talk later in this show about the importance of collaborating and partnering but one more thing I just want to say is email email is the something that we don't talk a lot about email as a strategy in web 3 and the reason we don't talk a lot about is because I think most of us are so we're so sick of email words our inboxes are overflowing and we get so much spam and web3 hopefully will solve the spam problem we've actually done podcasts where we've talked about how we believe that web3 communication can solve the spam problem that email has right now not going to get into that today but I do think one thing I would include in my

blueprint or my playbook if I was a brand entering web3 is I would capture their my consumer's email addresses just because right now what it's happening is okay so you use Twitter and use Discord and those are your communication channels your community okay well let's be real people are going to miss it right Twitter is like the fastest flowing river in the world you can you Blake it you might miss something Twitter right Discord okay little slower definitely you can have like an announcements Channel and it's much easier to get a message out to your community but not everybody checks Discord and logs into Discord so I really suggest capture email addresses in some way if you can because you will use them you don't even need to use the

I wouldn't even use it in the beginning I would just capture them and then down the road if you need to tell your community like hey we just gave you an airdropper hey come back to the community we now have a burn mechanism and you can earn something or we just add a new utility any sort of communication you want to give to your older email is going to be a big help for that so I would really encourage capturing email as well yeah I think most people don't talk about email because it sounds boring and you know but it's super powerful like we've seen newsletters sell for Millions just because they have 60 000 emails and it's a huge business so for sure if you're advising any business you should bring this to the table because it has a huge impact now that we talked about that

they can Communications Channel and we established a Twitter and Discord and maybe email is the way to go why don't you tell us Jay about the few steps or like the first steps that any brand regardless of like how big they are what they're doing what the product is as long as they're a consumer brand what's the three five steps that each brand can take when joining battery yeah great question step one get your ens sounds so simple but go get your ens it's a must-have and I hope most big Brands I would hope most big brands have done this already but you know it makes me think about uh one of the best things that Budweiser did was they bought beer.e and then they built their entire

web3 brand around beer.e that's awesome like now they own beer.e not any of the other beer companies in the world which there are you know thousands of beer companies probably hundreds of thousands of beer companies and they own beer.e so go invest in some ens get your brand ens right get budweiser.eath or whatever brand you are and then also I would probably invest in some other ones as well right like think about what categories you fit into and grab those the way Budweiser grabbed bearded the next thing I would do is I would really encourage people to start small and simple don't feel like you need to go build a smart contract don't feel like you need to go create a full digital

experience no no no do something really simple and the way you do that is give a free nft to your most loyal fans do a free mint and there's two ways that you can do a free event that's really simple if you're doing an event whether it be a digital event or an in-person event give a poet well you can talk about how last week you were in Portugal and web3 Academy at an event and we gave a Pro app simply by scanning a QR code at that event right so give a co-op if you're an event if you don't have an event then I would just do a free mint on a platform like Zora or something similar like that there's so many different platforms tools available to do very simple free

minutes where you don't need to understand smart contracts you don't need to create the smart contract all right and that type of free mint I would try to do that around something like don't just give a free mint that's like your logo what we've seen a lot of companies do for a free event is product launches so maybe you're launching a new product maybe if you're a fashion company maybe your new collection is coming out do a free event around that collection if you're an artist and you got a new album coming out do a free mentor on that album I think I would have free meant you don't have to give utility in a free event that's the key that's why it's so simple to do a free mint because it's just an opportunity to start to get your audience start to get

them in the mindset of like oh okay I attended an event or I follow you and I saw this new product launch okay now you're gonna give me a permit and because it's free there's no expectation Utilities in order to explain what they get from it you just give them something you get their wallet addresses a result of that and you start to have abilities to start to engage with them we'll talk about where you can take this and the other thing I would say is whatever you do make sure that it is a web 3 mullet like experience and when I say when I say to web 3 mullet we say this all the time on the show it's web 2 in the front we're web3 in the back so let's say you're doing a poapp make sure it's very simple make sure it's really easy use a

QR code which everyone understands that's very web 2 right make sure it's very easy for them to collect that pull app if they have to go and download a wallet and then set up a wallet you're going to lose them right so and this is where we're seeing so many software companies so many Tech platforms that are building these type of experiences where no longer is it like Go download wallet go to an exchange buy e with from that exchange transfer that money from that exchange to your wallet then you can go and mint whatever you need to Mint like that is too much so what you need is you need to hide all of that by making it

very simple so you need basically the ideal is somebody can come to your website they punch in their email they don't have to pay and the problem with this is the challenge with free men says we say that they're free but they're never actually free because of gas and transaction fees right so you gotta hide that so what you need to do is you need to use a platform that allows you to do that I mean one example of that is Aurora cloud Who is uh one of the biggest layer one blockchains that's built on top of the near protocol it's EDM compatible they right now have built out a way it's called Borealis business and it's basically a protocol that

allows any business to cover gas on behalf of the consumer so that you can do exactly what I said so that you can give your consumer experience where it's like come to website enter email click a mint button you don't even need to set up a wallet the wallet is set up for you using your email it's going to be custody on your behalf and let's be real most people don't care about self-custody in the beginning that's not the reason that people are going to enter in web 3. they're entering because they love your brand and they want to support you and they're like oh cool you're going to give me something for attending this event or you're going to give me something for this new product launch that you're having like cool great I'll select that I'll be part of that right but they don't want to set up

a wall and do all this so you you need that to be simple email either cred credit card if it's a mint with payment or ideally do it as a free mint and cover the gas use something like Aurora cloud in order to cover the gas so you would take the business would pay for the gas in that case not the user so it's you're incurring a little bit of a cost but if you're using polygon or one of these layer twos or side chains then gas is going to be fairly cheap yeah honestly you could probably contact like if you contacted polygon or you contacted Arboretum or any of these are optimism I'll bet you most of them would be like we'll tell you how you can cover gas or we'll split the gas with you because all of these chains want development they want business building

on top of their chains right now I'm same with Aurora too Aurora would would probably help you out as well so yeah I think that just to go back to your question there Raul like what are the steps that any brand should take get your ens start with some sort of a free mint whether it be a co-op or whether it be something connected to something you're doing your business and then make sure it's a web 3 mullet experience where are your users don't need a wallet they don't need eat or some token in their wallet in order to pay for gas cover the gas for them and make it a really simple web to like experience yeah very good points there I think a very good comparison it would be to think of the experience of getting your nft into these people's wallets The

Experience should be as easy as like going to a restaurant scanning the QR code using the menu ordering right it should be that easy if it's that easy you're set that's a good okay I like that one Raul is it yeah that's good hey I want you to tell us about um just give us some specific examples here Adidas is an example of somebody who did a pull out that was their first step right Adidas had a meta I'm going to say metaverse event in air quotes basically a digital event and if you attended on a digital event you could collect a poem so that was Adidas and that was the first step they did a few years ago as part of their web 3 Playbook coinbase recently right this wasn't the first step but just to give an example when

coinbase launched based um was that at East Denver that they launched base I think back in March they had a free mint on Zora where you could mint basically a free token to say that you were part of the launch of um phase right what did Nike do Raul so basically they just allowed people to Mint if they participated in certain events if there were basically active across the community it's like they were in this court if they attended this event or that Meetup or whatever they got the ability to Mint which is like kind of like a three mint it's not like you go to a website click about some science transaction and we have the nft you actually have to go and do something and then you get it for free but this was

just to ensure that there was no spam There Was You Know actually people engaging with something to get this and of this Speculator and I think that's really powerful strategy yeah yeah no definitely like we all get so caught up in the fact that like we feel like web3 has to only be web3 drop them you've got to use web 2 in your in your web through your strategy so build community to get them doing things whether it be through email or through Twitter or through Discord get them doing things and then reward them with free mint but make it super simple as Raul said let's talk about like grabbing the furniture so over the years we've seen like Brands bordering existing I don't know if you

could call them web rebrands but they they really have like they're with the communities basically so we've seen like Adidas partnering with board Apes you know when they bought the board ape and made it Adidas you know personalized then we saw Gucci a partnering with other side they're about to launch something I we all think it's a perfume not sure yet then we saw Tiffany you know launching with uh in partnership with points they launched these degrees that were Punk personalized then we also saw Mercedes partnering with fingerprinted out and you know artists uh Harmony One then then doorbell I think that's how you pronounce it and I just think that this has been the strategy of a lot of web 2 Brands what

do you think that is this the right way or is there another way to launch I I definitely think it's the right play this is the power of community and this is what I don't think most of us don't really realize this yet because we're too early in the web 3 Journey but here's where this is going to go right now let's take an example of like a an experience that we would all know let's say you're at a music festival okay you're at a music festival and you just have a general admission ticket right so you you're walking around you're going to different stages you know checking out different bands and let's say you bump into your friend of yours who works for you know a brand that is

involved in this music festival let's say they work for like you know Heineken right and heineken's got like some special beard going on right well your friend's gonna be like okay well I'm part of the Heineken Community right hey I got some wristbands for you right and now you because you're associated with your friend here are going to be able to get into this Heineken Community thing and now you feel special because you're like oh wow like and you feel affiliation to Heineken right because they're experience something really really cool that they put on right this is what's gonna happen but it's gonna be that's an example people in person in person stuff like that is very expensive and very difficult to pull off because you got to have a you gotta have thousands of people somewhere all at

once I guess sporting events would be another example of this like you're at a sports event and you sit in a certain section because you're part of soccer I've heard is like this Raul maybe you can speak to this better to me I'm not a massive soccer fan or football as you call it in Europe but from what I understand there's different sections in the stadium where you get to sit there because you're part of some fan club right and they have access to that section well this is going to be what happens with communities in web 3 is we are all going to be part of various communities in web 3 and as a result of being part of those communities we are going to be given access to other communities communities are going to cross pollinate they're going to say hey

I love your community you should come over to mine like right now we've seen this in social media but it's totally bogus right because it's not on chain so we see this in like Instagram program where like one brand is like hey follow this other brand and we'll pick you know and then comment and like and tag three friends and we'll pick three of you and we'll give you something we'll give something away and like you don't know if it actually happens you don't even really necessarily feel a part of that you go follow that brand just because you want that free thing but you don't necessarily feel a part of it like there's no Community affiliation nothing like that happens well throw all that out the window because in web 3 it's going to be totally different because the Baseline the foundation of everything is community and because of

tokens which are the access point to communities and tokens because they're programmable they're smart contracts what you can do with them is you can give access from one Community to another community and you can do it digitally and you can do it permissionless you don't need to go ask somebody for it I get so excited about the collaboration potential of what's going to happen in the future which is why it's so important if you're a brand you'd better be starting a web 3 Community now and forget web3 you better be starting a community now and the best form of a community is a tokenized community so you better start a community you better get tokens into their hands at some point now just going back to your question here I do think if

you're a brand what I would do as one of the first things I would do is I would pick some communities that I thought I'd cross over with my brand right so Adidas picked board apoc club and they were right right like if you think about 48th Yacht Club is mostly male mostly young forward-thinking and mostly like a higher end consumer more of a luxury consumer and those are the type of people who like Adidas they like streetwear they're hip they're Forward Thinking so that's why Adidas picked board API Club if you're a brand go pick a community and join that community don't go to that Community just on your

own in the beginning and just say hey we want to partner with you no no just join the community and join them because you're going to learn a lot so like I mean I'm not saying everybody needs to go join board apocal it's going to cost you a hundred thousand dollars like don't do that right but find a community that's smaller and buy in buy their pfp join their Discord and just start experiencing it start participating and see what it's like and you will learn so much that will be so valuable to what you do in web3 and you will also gain 10 000 people who now are going to love whatever you do because you became a part of their Community yeah and just to add to this I think in this concept of

collaboration and building Community it's not new because of web3 it's been there for years for example I support Arsenal and when I went to the match with a community from Romania because we all support Arsenal we got complimentary drinks at half time we got to meet the players so we got like additional benefits and I think this you know rewarding communities and supporters it's at the base of any consumer brand and it's been like this for years I think the point here is that web3 just facilitates a smoother process for this reward to happen it's not like inventing this that's what I want everyone to be clear on is just facilitating a way smoother process for this to be a reality which is I think it's super

powerful yeah I think that like just to build on that the two reasons why every consumer brand should be planning in web 3 is because web3 does two things better much better like a million times better than web 2 does it does engagement way better and it does loyalty and if you're a consumer brand those are probably the two most important things within your marketing and sales categories within your marketing and sales departments so you want to be there now right now there's always this like asterisk of like we are in the first inning therefore the tech is and the ux sucks so like definitely right now you could be like oh Jay

actually I don't think web 3 does do engagement better because the eux is so bad and it's so difficult and you're right you're right I get that or you could say ah the Loyalty isn't so great because I need to do so many steps in order to receive the Loyalty you're right okay sure but that's right now right that's like saying that like at the start of the internet buying something online was yeah doing e-commerce at the start of the internet with because it was a difficult process shipping wasn't figured out credit card processing wasn't figured out it was a nightmare but if you were one of the first people to bring e-commerce to your business I guarantee you thrive because you were there before everyone else was and you are ready when the ux got better like all this you have

like I think that's the thing don't worry about all that don't worry about wallets don't worry about like you know yeah you need to understand where it's at right now and be able to communicate that to your users but all of that there's so many businesses figuring all that out there's so many super smart people that are going to figure out all the tech and make the ux amazing and simple all you need to do is just start to participate in web3 because if engagement and loyalty matter to your brand then this is going to be a way to do it way better than you've ever done it before great great great points there yeah I think we just established like how to have a most likely a successful launch but I think we've seen a lot of Brands you know launch and fail still and we've seen you know Porsche

launching they try to launch NXT for one e per nft in like a bear market and they had to stop the mean halfway through now this wasn't really a fail because they still made 3.5 million from this they made about 2008 but it was like worse than projected but we have other brands like Scotch and Soda which is my favorite clothing brand they they launched NFC and basically it just looked like like a slow run because it couldn't deliver after they launched so it just left the whole Community vulnerable and Confused no one knew what was going on so I just wanted to ask you how how can Brands avoid something like this where they have a plan but then when they execute it they think okay this is this was not the right way to go and then we need to Pivot and then maybe

they don't pivot how do they fix that from the start it's a good question the first thing I would say and there's many examples of there's no shortage examples of failures I don't know stale years failures is so strong that assumes that like you're done and you're out I wouldn't say it's about there's examples of like mistakes right or missteps along the way and I think the first thing that's really important is you do need to be if you're a brand entering web three you're going to be super clear with what your goals are and what your objectives are and what why you are doing this so that's like business 101 right do I think about this as like launching nft think about this as launching a new product or Building A Better Community mechanism or creating a

a new digital experience right like so you got to be super clear on what your goals are and what your objectives are that's just the first thing I would say the other thing I would say is and I almost think this is like I can't even believe I'm saying this but like hire a blockchain expert or a team like if you are a brand and you're you know Scotch and Soda let's take that as an example Raul I don't know who worked on that but the simplest thing I would do I talked about joining a community right so go join point an existing web 3 community so your scotch and soda I don't know who matches with scotch and soda or like can you think of a pfp collection that matches with Scotch and Soda not really they are like more extravagant like a

lot of colors maybe Doodles Doodles is like young though it's like an older Doodles who's like an older hip Doodles maybe Moon Birds maybe Moon Birds Indian words is more art but like they're kind of artsy yes look let's see Moon Birds right so like anyways go join an existing community and become part of that Community but then also make sure you hire people who know what they're talking about and this is the biggest thing I want to say to everybody that's listening in this Twitter space or if you're listening on the podcast if you're not here with us live if you want a job right now and I don't mean a full-time job if you just want like a Consulting gig go approach any brand that you love and you use just like you know drop them a note in Twitter or

anything and just like hey what are you guys doing with blockchain what are you doing with web3 you know do you guys know what you're doing I would love to I would love to help you build a plan is onesie in here I don't think onesie's in here anymore but onesie was in this was in the Twitter space earlier and she was early like I must have been six months ago he's a big music fan he has approached Ultra Music and he helped him write a blockchain plan for using an edit t as a ticket at one of their upcoming events you know it's not like he's like some you know big name consultant or has an agency or anything like that he's just he's just a guy who's a hustler and approach them and so I think there's a big opportunity for anybody right now to be a blockchain

consultant and if you're a brand right hand you better be hiring blockchain Consultants or you better be hiring blockchain experts really what you should be doing you should be hiring a team but obviously that depends upon budget as to whether or not you can afford to hire a full team but that's the ideal in my life like Adidas Nike Tiffany's Gucci the brands that have been doing this well they've all got a full blockchain team that is within the organization that is they're going to be web 3 native they're experts on blockchain they're attending the conferences they get this stuff from the inside out right it's like the early days of the internet you would have hired it a like you know a digital team for the first time and that digital team

is what took you online well same thing now you need a blockchain change and that blockchain team is who takes you on chain you're a great answer we also got a question from Captain softball and by the way if anyone has any questions just feel free to drop them in the comment section or raise your hand if you want to speak and we can address them but we've got a great question here that fits in this this discussion and it's from Captain Southpaw he asked how do you build community though does every brand have a community potential and I just think that every web 2 brand that has a product they can build a community and they have built for the most part either a consumer brand they have built a community the reason why they should come into web 3 and you know build out

that Community is just because to build a successful community in webpage it's got to be present and you have all these tools and you can apply to you know grow this community and I think every brand has a potential especially if they have the product it's just web3 just facilitates that process of building that Community I don't know if you have anything to to agitate yeah I think they're like you do not need web3 to build community all you need to build community is something that you all share right and usually it's a shared Mission it's a share it's a shared set of beliefs right like you could be a a coffee mug company and you could build community because you believe in artisan creations of like one of one copy mug

and you believe that artists should be celebrated and you're going to get other artists who are like yeah I really believe in one of one and I really believe in you know or you could be a coffee mug company that believes in supporting uh communities in some developing country where they don't have as much opportunity and you give one percent of your profits to them and so you can have other people join your community or brand that believe in that same thing that's all you need to build a community you need a clear set of beliefs things that you believe in and then what's going to happen is other people that believe in the same thing will be attracted to your community and then you'll start to engage around that so you don't need web 3 to build the community as long as you have that that

shared set of beliefs web three as you said Raul it's just a way better toolkit who engage your community I think that's the one thing it's like blockchain and web3 it's a toolkit it's not a product right nfts are not a product nfts are not a business they're just a toolkit and a toolkit that you can use to build stronger communities to create better engagement with your best to create better loyalty to create better digital experiences all things that your users care about and they want right so yeah I don't know if that that answered your question there well I want to hear the Porsche versus Mercedes example when we

talk about you mentioned Porsche before and they they made a mistake they didn't fail they overpriced selling their collection at one e it wasn't even a problem to sell it at one each the problem was that the supply was way too high so they didn't sell out but they they adjusted quickly and they just kept the supply but why do you think Porsche failed versus like why do you think you're saying is successful yeah so I think it's the answer is based on your point with like hiring a blockchain team or like blockchain experts so what we've seen from Porsche is like they didn't seem like web three maybe it seemed like like their Communications were basically coming from their marketing team who just like

were assigned this web3 project go launching NFC and build this community have this Twitter account or whatever on the other side from Mercedes what they did first thing they did was grab a ens then they had a bunch of Twitter spaces uh and Discord events and stuff like this where people on their team who were they had these board AIDS and efforts as their pfps they were long-term and very well known uh web3 Native people they were the ones who led this project and well okay Mercedes didn't raise that much money but it's all about the race it's about like their plan it just seemed like they were much more communicative and it made like better sense for for their plan and the way

they communicate it for the long term because I think that's where I as he said of course they don't fail they still raise 3.5 million um and they can still do a bunch of great stuff from here their floor price didn't sign it's still at 0.98 I think but it's just like from the start if you want to ensure that you have a smooth process all the way through your journey as you said just hire a blockchain team or partner with these webto experts like zeneca or Farooq or or maybe wearing for the Academy as well and you'll have a much better process it's crazy that like hire an expert is part of a blueprint or a book like you know it seems like the most obvious but but it's so true over the next year everybody watch you're going to see some

brands do stuff and you're going to be like oh yeah I can see why I can see that they did not hire an expert here or you'll be like oh I can see that they did hire an expert here right or involve that sort I mean Louis Vuitton right now right like Louis Vuitton is pushing their forty thousand dollar nfts which you know let's not get into that price and whether or not that's a good idea time will tell it's a limited Supply so I can understand I understand why they're doing a 40 000 nft because you get a trunk that it's probably worth somewhere between 20 to 40 000 anyway so there's utility and they're a luxury brand so it makes sense and there's only like 200 of them so also kind of makes sense to me but in the case of Louis

Vuitton what are they doing right now they're partnering with like the biggest web three influencers for Rook Betty from dead fellas those are the two that I've seen but I'm sure they're partnering with a whole bunch of large influencers in web 3 and involving them and that's just like such a you know hire a team work with web 3 influencers and web3 creators it's just such a like an obvious step to me but yeah there will be brands that don't do it yeah I think the reason people are missing this is because like in web 2 if you want to start a business you just go read a few books on the matter you listen to Simon Scenic and you read Elon musk's book to see like what they did

and you learn from there but you went through your you don't have a Playbook like you don't have a book that you can read you don't have a certain podcast that you can take all the learning from there so you can't learn on it on your own unless you do the mistakes so you better just partner with someone who did those mistakes learn from them and you know can teach you as well we talked about like uh pre-launch basically I want to ask you and maybe this is like a part two of this of this episode but I want to ask you how do you make sure that projects ensure long-term success like what are the next steps and give us like sort of a tldr because we're going quite far here yeah I think that so the first thing I'll say is like everything we've talked

about up until now all of that fits into phase one of your web 3 strategy right we talked about Community we talked about free mints or free web free actions we talked about hiring a team and we talked about collaborating or partnering with an existing community so like those are all like that's kind of like All Phase One right what we hadn't talked about is we haven't talked about phase two phase two is where you go out and you write a smart contract and you launch your first nft collection where it's a paid entity collection and you set up and you create utility within that collection and use burn mechanisms you use airdrops so you token gate

that's phase two and so we're not going to get into what the Playbook is for all of those things in this episode if you guys want us to talk more about that let us know in the comments or come into Discord and tell us that you want us to break down more of the what I would say is like the step where you actually build your own smart contract and build your own web 3 Tech basically which then creates a digital experience and more engagement and all that so if you want to talk more about that we can we're not diving into that right now I think that to answer your question Raul what are the things to achieve long-term success is be very consistent in your Communications right so know your purpose know your goal and communicate

that over and over again I mean this is true of any business why is pudgy penguins been so successful since lucanets took over because they have been very clear that they want to be an IP brand and part of being an IP brand is having their nft collection having toys and then that will lead into movies and TV shows and they have just they've said that and they have repeated that over and over and over again until everybody knows it and so you gotta be very clear on your goal and then just repeat that communication the other thing is do not use web3 talk okay nobody13 wants to hear this but nobody outside of webcry wants to hear about

decentralization or self-custody or nfts or tokens they don't are minting they don't know what the that stuff means and it just confuses them and if they get confused they feel stupid and when they feel stupid they leave so do not use web 3 talk I already mentioned this use the web 3 mullet and your user experience so figure out a way to use email as the onboarding do not require them to have a wallet figure out a way to use email or their email automatically creates a wall for them in the back end it's a web 3 mullet use credit card in order for them to buy if they need to buy and even better do a

free mint and you cover the gas so they don't have to pay anything in the beginning and then the final thing is really focus on utility and benefits right like again web3 is a toolkit it is a toolkit it is not a business and so if you are creating a new product you go out there and tell everybody about the the toolkit that you're using to do it you tell people about the benefits of what they're going to get for using that product right so for example like when Apple launched the iPod they weren't going around being like telling everybody about mp3s and all we're going to sell you MP3s no nobody knew nobody gives a but what

an MP3 is was MP3 an incredible technology yeah it was incredible it was Game changing it was the first card you could take a large music file and compress it into such a small format that you could put thousands of them on a device that was huge it was huge but nobody was talking about that instead everyone was talking about oh get music in your pocket thousands of songs in your pocket that's all that's the utility that's the benefit that's what people care about so really focus on the utility and the benefits not on the cat not on the the web 3 talk you know that stuff will come later and if you want to be part of those conversations that's why you follow web3 Academy because I'm not saying that decentralization and

self-custing and self-soverty aren't important they're incredibly important but that is a different Journey a different path people go on that path in that Journey not through your brand they're they're your brand because they love your brand and they love your product if they want to go on the self custody the decentralization if they want to go on that philosophical Journey they can do that in other ways and you might suggest where they do that but don't shut that down their throats because they're just going to get pissed at you and they're going to peace out oh and the other thing I would say is too many brands have gotten too caught up in airdrops air dropping is a dangerous thing because I actually have really started like air dropping uh the more I learn about web3 I much prefer like I prefer requiring my users to engage by

either burning or minting than I do or collecting if you want to call minting collecting then I do air dropping because the problem with air dropping is there's no engagement like the user doesn't do anything sure it's cool that all of a sudden they have something in their wallet but they don't even know that that thing is in their wallet they don't know what the value of that thing is they don't know what to do with it right so I would really focus on yeah don't airdrop but anyways I'm kind of getting ahead to that phase two of like mint burn airdrop token gate all of those things those are all the mechanisms of web3 and we're not really talking about how brands use those if you want to learn more about how brands use those go back about a month ago we had a pro report all about Adidas and

their basic case study of what they did in web 3 and we break down how they used basically how they launched their first collection how they gave utility how they use the burn mechanism how they created traits and sub communities and then how they use token gating uh and that kind of all breaks down those mechanisms great that was great I think the point to emphasize is the fact that people should indeed focus on the utility and the benefits and not the features that's the 101 copyright writing well I think it's hard for people to because we don't have clear in real life you know use cases yet or nfts I mean we do but it's like they're hard to explain so I think for the future we'll we'll uh we'll get an article out

there telling you all about maybe like 30 use cases that you can tell your friends and family and if you are looking to advise businesses to get into web3 that would be super helpful as well Jay question do you have any other other thoughts to add before we'll wrap up here my final thought is um I get really excited about like the future right like I think that like people we we get so caught up on where we are now of like speculation and like price of crypto and price of nfts like that's just this moment in time that's not what the future of web 3 is going to look like the future is going to be very different and when we have this future where we have right now what was this the the

stat from last week Raul we we wrote a pro report and I think we had an all-time high on monthly active wallets it was 20 million 20 million monthly after wallet that was the all-time okay ever all-time high 20 million that's freaking potatoes compared to the 8 billion people that are in the world so we're still so so early so don't forget that we're early and what will happen in the future when we had a hundred a billion monthly active wallets that are and we will we will get there at that point in time one of the most valuable things that you can have if you're a brand is wallet addresses okay it's just like email wallet

addresses are going to be the new email in the future because you're going to be able to communicate directly with wallet addresses you can kind of communicate with all the addresses right now but the ux is awful and it's not simple and like yeah there's so many issues with it and there's also a lot of challenges right now around wallets being spammed and air dropped a million different things and so it's a mess right now and it's going to be fixed very fast okay and so if you're a brand one of the biggest reasons why I would be activating in web 3 is because I would be building out my database the wallet addresses of my consumers and my users because if you have that that is going to be the equivalent of having an

email list right now on web2 and we all know how valuable an email list is we all know the millions of dollars that companies spend on building email lists there's so much value and email is the best direct to your user Communication channel well email is going to become a I don't know let's say it's a common thing in the past but it is going to be nothing compared to the direct communication Channel you're going to get with wallet addresses so yeah if you're a brand make sure you are in some way starting to build a database of wallet addresses it will be very valuable totally agree Sweet let's wrap up so for everyone this is the stuck around thank you for for listening we will have this as a podcast that's going

to be dropped tomorrow so you can really listen if you couldn't listen all the way through if you want this in written form just subscribe to our to our newsletter because we will send it this in written form on Wednesday today's newsletter was just dropped on blackrock's ETF if you want to learn more about that and that's it do you have anything else you want to tell people about yeah the ux of Twitter spaces sucked so I just got kicked out and had to come back um remember Clubhouse what a moment in time Clubhouse was I wish like and then and then Twitter had to go and make Twitter's cases and basically ruin the clubhouse but Clubhouse was so much better than Twitter spaces somebody go make a web 3 version somebody go

approach lens they just got 15 million dollars in funding if you're like a tech guy and you're a builder you're a Dev go make the clubhouse of web 3. I'm telling you this is where all one three communities are and we're not all going to be on Twitter forever we're going to be uh somewhere else and it could be on your ad if you go do that so somebody go do that my only other thing I was going to mention is two things one if you want us to dive more into the Playbook around like minting token getting collecting airdropping burning all those mechanics please let us know if you guys want that we'll do we'll build we'll create more content on that uh also we've got a pro report coming out in the next two weeks that's a case study of V friends burn

Island uh and really Dives deep into the burn mechanics of web3 and how I'm so hype on burning and the potential of burning as a just an incredible engagement tool for communities that are in web3 so make sure you check that out and if you're not pro make sure you go pro so you can get that case study this is the type of content that if you are working with brands or you're a builder yourself these case studies that we're doing within Pro you can basically steal them and like put them directly into your deck and they'll help you build out your hypothesis or your plan or your playbook and you can use these case studies we've done Adidas in the past next we're going to do the friends if

there's anybody you want us to do a case study on please let us know coming to Discord or drop us a note in Twitter yeah that's it that's all I got are we going to do questions bro are we going to wrap we're overtime we're way over time and we didn't have any questions apart from the one that we already have oh one more thing uh this is a Twitter space if you're listening to this on a podcast I'm sure you've got this by now we should have mentioned this at the beginning every Monday we're going to do a Twitter space at noon eastern time show up in Twitter and then you can ask questions in the Twitter space and then we will also produce the Twitter space as a podcast that'll come out on Tuesdays but would love to see you guys all in Twitter because it's more fun to

engage with you guys here hey thanks for today have a great day have a great week thank you for listening to web3 Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for a free newsletter where we provide timely and relevant web3 insights so you can confidently build and invest in web 3. make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and website are risky and you should never invest more than you're willing to lose thank you friends and see you in the next one