Rethinking Airdrops: Beyond Quick Wins in User Acquisition

Web3 marketing has largely revolved around airdropping campaigns and partnership announcements to cater to the interests of investors and speculators. However, the effectiveness of such approaches raises questions about the sustainability and depth of engagement.

And what about real user adoption? 

Yes, Web3 is about ownership for creators, but the underlying factor of monetization plays a crucial role in incentivizing them. Creators are constantly on the lookout for opportunities to generate income, whether it's through off-platform brand deals or on-platform activities. In less economically developed countries or regions where the local currency may not be as strong, such as in certain parts of Asia like the Philippines, these 'to-earn' platforms become more lucrative, as the income generated by creators holds greater value.

With WOM protocol, we have built up sustainable traction from 50,000 to 200,000 daily transactions, providing us with insights into the challenges inherent in user acquisition and retention in the SocialFi space. Today, we’ll delve into these challenges, examining strategies to foster genuine user acquisition and ensure lasting growth in the SocialFi ecosystem.

The Airdrop Illusion: Quick Numbers, Shallow Impact

Large airdrops often create a buzz, attracting a surge of signups in a short span. Yet, the question remains: do these signups truly contribute to the long-term success of a platform? The reality is that quick acquisitions through airdrops may result in a high initial user count, but the depth of engagement and commitment from these users is often shallow.

Targeted Airdrops: Quality Over Quantity

Instead of casting a wide net, focus on targeted airdrops to specific communities aligned with your platform's values. Research potential user groups, ensuring they share genuine interest in your platform's mission.

Sustainable Growth: Building Relationships, Not Just Numbers

Instead of fixating on the quantity of users gained overnight, let's shift our focus to the quality of user growth. Sustainable growth involves building lasting relationships with users who are genuinely interested in the platform's purpose and offerings.

One crucial element in achieving this is to consider incorporating a long-term perspective into your tokenomics. Rather than opting for short-term airdrops that may generate hype but lack longevity, explore a token distribution model that includes sustained airdrops and utility over an extended period. This approach goes beyond the initial excitement of an airdrop and emphasizes the importance of creating utility that not only attracts users initially but also keeps them engaged over the long run.

Proof of Engagement: Moving Beyond Wallet Addresses

Introduce mechanisms that require users to demonstrate engagement beyond a one-time wallet address submission. Consider rewarding users based on actual participation! This can be any community activity and should be a meaningful contribution that fits to your unique use-case. 

For example, the WOM Protocol rewards users for engaging in diverse activities such as rating content and creating original content. The distribution of rewards is intricately tied to the quality and engagement level of the content, encouraging users to contribute meaningfully to the platform.

Think creatively about activities that resonate with your platform's goals. This could involve participating in polls, contributing to discussions, promoting content, or even collaborating on creative projects. By expanding the scope of engagement activities, you create an ecosystem where users are not merely passive participants but active contributors.

Real User Engagement and Community Building: The Foundation of Sustainable Growth in Web3

Real user engagement stands as the cornerstone of a thriving Web3 community. This involves not only attracting users but also retaining them through a positive and engaging experience. It's an ongoing process (not a sprint but a marathon)!

To empower users and ensure a deeper understanding of your platform's utility, consider implementing educational initiatives alongside airdrops. Provide valuable resources, tutorials, and information that extend beyond the initial excitement of an airdrop, helping users see the long-term value in their engagement.

Community building must be at the heart of your platform's strategy. With new web3 concepts, education is key. Establish open communication channels, forums and events to connect users with each other and with your project team. Even better if you manage to have users help each other!

For example, within the WOM Protocol, we've established a dedicated creator telegram channel for top creators on platforms like BULLZ, which has seamlessly integrated the WOM Protocol for creator rewards. This channel serves as a dynamic feedback loop, facilitating discussions on improvements, ideas and user feedback.  Recognize that your platform is not a one-time product released into the wild; it's an ongoing dialogue, a back-and-forth process of iteration and improvement, ensuring sustained growth and a community that actively shapes the platform's evolution. 

Beyond Airdrops, Toward Lasting Impact

The era of relying solely on large airdrops for user acquisition is evolving. To ensure the longevity and success of SocialFi platforms, we must embrace a paradigm shift—a move away from quick wins toward sustainable growth rooted in real user engagement. For a Web3 project to thrive, it must establish a balanced ecosystem with active participants at each crucial node. 

Beyond attracting users, a sustainable model involves someone paying in, someone creating the value (as seen in WOM with creators/authenticators), and someone interested in the value (as exemplified by brands eager to utilize authentic content). 

This intricate network ensures that the platform doesn't devolve into a “Ponzi scheme”, where the inflow of value becomes unsustainable. By fostering ongoing relationships, building a community and having multiple stakeholders involved, SocialFi projects can create lasting impact and contribute to the vibrant evolution of the Web3 landscape.