If we are going to pay to acquire users, at least use bitAssets not BTS

[TurkeyLeg]

First I do not know what the prevailing views are on this topic, but on the back of recent ideas floated in the forum that dilution could be used to attract new users with gifts of BTS, as well as a delegate now airdropping BTS onto bitcointalk and bitshares forum members (and an embarrassing rush for free money) I just wanted to express why I think that's a bad idea.

As stakeholders, or BTS owners, we do not want to be giving away shares to random people unless they are building our internal capital (being the infrastructure, branding etc). The people earning these shares are likewise willing holders of BTS because they believe in the value of what they are building.

The reason we want new users is primarily as customers, to use bitAssets and build network effects. If they were to just sit on their hands and hold BTS, they are not creating value for us. If worse they decide they don't want to really keep the shares, the dilution has only added sell pressure to the BTS price. Of course those that do become bullish on BTS ownership after being introduced to the system always have the option of switching to BTS on the exchange.

I'm not yet sold on paying anything for new users at this stage - still forming an opinion on it to be honest. But if we did, it would be better to give them the correct incentive as a customer, and give them a product "coupon" in the bitAssets that we want them to use.

By creating a marketing account of new BTS shares, these could be used to buy the required bitAsset on the internal exchange. That allows the following parties first option to increase their BTS holdings:

1. BitAsset owners that want to sell back out to BTS
2. Shorts that are bullish
3. Buyers on other exchanges (because arbitragers transfer BTS selling pressure there also)

Each of these is a willing holder.

Then offer the bitAssets in the marketing account to the new users. A cheaper way to do this might be to offer them $20 free bitAsset on the condition they acquire more than $100 of bitAsset in their account and do at least X transactions in the first month.

This approach at least transfers the BTS into the hands of willing holders, and bitAssets into the hands of likely users.

Makes sense to me too. Apple Shareholders want to see Apple sell more MacBooks.

[starspirit]

I think the community agrees iwht you.

I havent seen any proposals to give away BTS.

All of the customer incentive proposals that I have seen were about giving them bitUSD.  For example, buy a $100 bitUSD prepaid card and get 10 free bitUSD, was a plan that was being thrown around a few weeks back.

A couple of examples:
https://bitsharestalk.org/index.php?topic=11050.msg145459#msg145459
https://bitsharestalk.org/index.php?topic=6163.0

[Method-X]

We should "airdrop" BitUSD on targeted, strategically important people. You can use area codes, emails (.edu), forum post count, reddit karma...

[bitmarket]

Agreed.

Giving away free samples of ownership certificates makes little sense. Giving away free samples of your product to a targeted demographic in limited way makes a lot of sense.

[Ander]

I think the community agrees iwht you.

I havent seen any proposals to give away BTS.

All of the customer incentive proposals that I have seen were about giving them bitUSD.  For example, buy a $100 bitUSD prepaid card and get 10 free bitUSD, was a plan that was being thrown around a few weeks back.

[starspirit]

Thanks Ben
Adding to my points above, we need to understand the difference between owners and customers. No business gives away its shares to entice customers. And if a business wants to improve its share price, it promotes its value to investors, it doesn't hand out its shares. We need to be clear what we are trying to accomplish, or we just waste capital.

[Ben Mason]

This really makes sense to me....

[starspirit]

First I do not know what the prevailing views are on this topic, but on the back of recent ideas floated in the forum that dilution could be used to attract new users with gifts of BTS, as well as a delegate now airdropping BTS onto bitcointalk and bitshares forum members (and an embarrassing rush for free money) I just wanted to express why I think that's a bad idea.

As stakeholders, or BTS owners, we do not want to be giving away shares to random people unless they are building our internal capital (being the infrastructure, branding etc). The people earning these shares are likewise willing holders of BTS because they believe in the value of what they are building.

The reason we want new users is primarily as customers, to use bitAssets and build network effects. If they were to just sit on their hands and hold BTS, they are not creating value for us. If worse they decide they don't want to really keep the shares, the dilution has only added sell pressure to the BTS price. Of course those that do become bullish on BTS ownership after being introduced to the system always have the option of switching to BTS on the exchange.

I'm not yet sold on paying anything for new users at this stage - still forming an opinion on it to be honest. But if we did, it would be better to give them the correct incentive as a customer, and give them a product "coupon" in the bitAssets that we want them to use.

By creating a marketing account of new BTS shares, these could be used to buy the required bitAsset on the internal exchange. That allows the following parties first option to increase their BTS holdings:

1. BitAsset owners that want to sell back out to BTS
2. Shorts that are bullish
3. Buyers on other exchanges (because arbitragers transfer BTS selling pressure there also)

Each of these is a willing holder.

Then offer the bitAssets in the marketing account to the new users. A cheaper way to do this might be to offer them $20 free bitAsset on the condition they acquire more than $100 of bitAsset in their account and do at least X transactions in the first month.

This approach at least transfers the BTS into the hands of willing holders, and bitAssets into the hands of likely users.