Sustainable Web3 Growth Strategies (101)

Web3 is taking over the world (we all know this), but how do we turn all that buzz into sustainable growth? As we all know, marketing and community are simply key in this discussion – both for early-stage projects and established ones – but the "how" in this story remains a subject of differing viewpoints.

Going beyond the hype cycle and FOMO, truly onboarding people, building that genuine community and retaining engagement are all crucial. Curious about future-proof Web3 marketing strategies and what works (and does not)? Read on.

Thrilld Labs' EcstaSHE panel offered a deep dive into sustainable ánd unsustainable growth strategies for Web3 projects and founders. Featuring leading marketing experts from across the industry, the panel spoke about Web3 marketing segments and strategies, building genuine communities, and leveraging AI.

The panel discussion featured Magda Milas, President and co-founder of Alice in Blockchains and President and Partnerships Lead at Web3 Tales; Lindsay Keyfauver, Head of Marketing at Denarii Labs and Divisional Director of Coinscribble; Melissa Lim, Marketing Advisor at Our Own AI; and Alexandra Overgaag, Founder and CEO of Thrilld Labs, who hosted the session.

A Preliminary Note: Preventing Unsustainable Practices

When projects and executives consider marketing in Web3, unsustainable practices often arise from poor budgeting and attempting to tackle too many initiatives simultaneously. This problem is very much mirrored in Web2. While it's acceptable and relatively normal for a product (and its very marketing) to have initial shortcomings, reallocating the budget effectively based on early feedback is vital.

In practice, this means narrowing down your audience, understanding what content gets the views, and grasping when it's too much for your audience. Once you do start spending, keep in mind that it is notably tricky to hold momentum up if marketing dollars and Satoshi's fuel that traction almost exclusively.

As Lindsay, Head of Marketing at Denarii Labs and fractional CMO at Coinbound, noted, building a solid early community and understanding audience saturation points can help establish product-market fit, maintain longer-term engagement, and avoid the pitfalls of overextension.

Strategies for Different Marketing Segments

Whether Web3 builders like it or not, marketing and growth strategies in Web3 should ideally be tailored to different audiences. To that end, we want to consider different segments with their native requirements and expectations, such as B2B (business-to-business), B2C (business-to-consumer), and B2D (business-to-developer).

• More growth-oriented, B2B comes into the picture. Here, it is key to focus on building partnerships and demonstrating reliability. Non-technical decision-makers need clear insights into the value of your product or project and its community; rest assured that they will research to know whether or not your company or value proposition is reliable. Closing partnerships and collaboration successfully is paramount to growth in Web3, yet we must remain considerate of the many marketing fugazis (so collabs for the sake of exposure only) that also come into the picture here. ‍

• For B2D relations, which is the key audience for many projects and protocols, remember that developers look for ease of integration and comprehensive documentation, ideally alongside an outlet via which they can provide feedback on your project. Ensure that your technical documentation is pristine and available, for instance, on your Docs section or on GitHub.

• Consumers, or users, so you will, are mainly concerned with performance, cost, and user experience. Understanding the customer journey and differentiating your product from competitors is vital—you don't have to reinvent the wheel, yet make sure that you have a strong competitive advantage and a good UX. Remember that in Web3, your users are also likely your community, so listen to them carefully at all times.

Based on the above assumptions, ensure now that your marketing team or marketing approach is well-informed and tailored to about the product's user segment(s).

The Role of Community and Social Proof

We already touched upon this topic: building and maintaining a strong community (containing users, partners, developers, investors and others who like your project) is at the heart of a successful marketing approach and is, therefore, paramount to sustainable growth. Regardless of your preferred marketing segments, in Web3, it's important to balance product focus with active community involvement to ensure that both the product and the audience grow together.

But how to be proactive as a project, especially if resources are limited?

Magda, President and co-founder of Alice in Blockchains and President and Partnerships Lead at Web3 Tales highlighted that community engagement through events and educational initiatives may drive growth and foster loyalty. Moreover, when your resources are limited, rest assured that attracting volunteers who like your project (alongside a lot of PR, hands-on networking, and mouth-to-mouth marketing) can go a long way toward growing organically.

Engaging in two-way communication with your community and indeed with those who help you, even as volunteers or effective brand ambassadors, helps build and grow. Remember that the emphasis should be on creating genuine relationships rather than merely promoting the product; you're in it for the long haul, together.

Alongside your community, the relevance of breathing external social proof and external partnerships (mostly relevant for B2B relationships, yet also for investors) varies depending on the type of product. Reputable partners can provide valuable credibility. However, for some types of products and initiatives, such as DAOs or memecoins, social proof may be less critical, albeit that co-marketing efforts can still go a long way.

In sum, a dual approach is ideal: focus on building a strong, reliable product and a supportive community to enhance credibility and, by extension, set into motion that longer-term growth trajectory.

Leveraging AI for and in Web3 Marketing

We cannot discuss all the practicalities that may be leveraged or used in marketing or Web3 growth. Yet we do want to mention AI, for obvious reasons. AI products and applications may very well be used in Web3 marketing, from analyzing blockchain data to implementing chatbots that enhance user experience and questions from your community.

Utilizing AI can also streamline marketing efforts and optimize your budget allocation. With AI growing exponentially, we might as well be using AI agents and will no longer be marketing directly to consumers in the not-too-distant future. We'd thus be moving from B2C to AI-Agent to AI-Agent marketing.

While AI can be leveraged for marketing and growth, it is arguably not a total solution for all human input and work. Indeed, there are concerns about over-relying on AI for creative processes. Melissa, Marketing Advisor at Our Own AI, expressed reservations about AI's role in creativity, stating that while AI can assist with data analysis and efficiency, it often falls short in creativity and can undermine real artistic work. From a more ideological and privacy perspective, arguably even more important from a Web3 perspective, be mindful of the data sharing and potential privacy implications when you leverage AI for marketing, especially if you work with user data and sensitive business.

In the flywheel of attracting, engaging, converting and delighting, the above is by no means an exhaustive discussion of everything needed for longer-term Web3 marketing success. Turning buzz into business opportunity should always be your core focus. To that end, fffective Web3 growth arguably hinges on a strategic blend of sustainable practices, targeted approaches, and sincere community engagement.

In the early stages, listening to feedback from your first 10-20 community members can provide all you need. Careful marketing dollars and finding (initial) product-market fit through community feedback can set you on track after those early days. You can leverage AI to streamline your marketing, yet be mindful of the potential adverse implications.

Read more about EcstaSHE here.