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Main => General Discussion => Topic started by: Stan on August 23, 2015, 07:57:31 pm

Title: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Stan on August 23, 2015, 07:57:31 pm
(http://cdn2.hubspot.net/hubfs/53/00-Blog_Thinkstock_Images/decentralized-content-marketing.png)

BitShares Decentralized Marketing Strategy in a Nutshell. 

1.  Since the Dawn of Time, marketers have tried to market BitShares directly to the consumer and found that it was simultaneously (a) too much to explain, and (b) not polished enough for the non-technical consumer.   

2.  BitShares 2.0 addresses (b) above but the (a) "problem" remains.  How do you get the average consumer or amateur investor to pay attention for 30 seconds and then press *BUY*?

3.  So part of our marketing strategy is to incentivize third parties to use the platform to build simpler business models that are easier to explain to the end user.  As each of them works to promote their own business, demand for BTS and its derivatives will grow cumulatively.  This way, very different business models, with different customers and entrepreneurial styles pursuing their own self-interests can work together to grow demand.  All incentives are aligned.

4.  This is where the new referral program comes in:  Each of these businesses gets to keep the profits from every user they sign up.  So we provide a way for multiple businesses to share a common infrastructure and still get explicit credit for their own user acquisition activities.  Then, they get access to the combined users from all the other businesses who become a fresh new ready-made market for their own products and services. Cryptonomex provides tools to put all kinds of businesses in this business.  All incentives are aligned.

5.  As for marketers, these are really just businesses in the business of bringing business to businesses.  Most of the ones I've talked to were simply giddy at the prospects of applying their skills where they get proper credit for what they have done.  (The problem with having many marketing campaigns without the referral system is that it's not possible to know who was responsible for any growth achieved.  Privatized effort and socialized reward never works.)  But now, each gets credit for the user's they bring.  Naturally, they are waiting for that scoring system to come online, and keeping their marketing powder dry - hence the lull before the storm.  But after launch, Katie bar the door, because ...all incentives will be aligned.

6.  Casual investors will see this increased demand and draw their own casual conclusions from that.  Sophisticated investors, attracted to casual investor signals, will then do their due diligence and look at what's under the hood and draw their more sophisticated conclusions from that.  Venture capitalists will then draw their own conclusions about whether to accelerate that viral growth with a well-timed investment of their own.

Now, there's nothing wrong with trying to have central marketing again.  If someone thinks they can do it by providing an overarching branding message that the BitShareholders collectively like, then there are mechanisms to propose a worker contract to provide that service to the blockchain.   Just keep in mind that such a marketer's incentives will be to do things that get them elected independent of any direct measure of their effectiveness.  Votes alone will be that measure.

Just don't wait for any centralized group of developers to select such a person. 

We merely try to engineer cryptoeconomic systems with properly aligned incentives... and then stay out of the way!

:)










Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: fuzzy on August 23, 2015, 08:04:20 pm
This is precisely why I posted this thread (https://bitsharestalk.org/index.php/topic,18098.0.html).   

When the big guys come, it would be nice to try to help the community here have the tools to play a direct role in maximizing the benefit of the referral system to them in a grass-roots kind of way.  The more decentralized this is...and the less dependent on big players from the very beginning, the better off we all are.  :)
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: BunkerChainLabs-DataSecurityNode on August 23, 2015, 08:26:51 pm
YES!  +5%

Thank you for posting this in detail.

Lately I been stating the same thing over and over again.. I hope this puts to rest a number of threads that have been harping on this with their own ideas about what should be done. There is a strategy in place.. it just won't do it's magic until 2.0 is out.

I hope your post helps some people who only see to the end of their nose to start seeing what is on the horizon.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Ben Mason on August 23, 2015, 08:52:14 pm
Start your engines ;)). Perhaps Bitshares will just evolve into the ubiquitous membrane after all!  You name it and in all likelyhood, it'll be powered by Bitshares.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: fuzzy on August 23, 2015, 08:53:02 pm
YES!  +5%

Thank you for posting this in detail.

Lately I been stating the same thing over and over again.. I hope this puts to rest a number of threads that have been harping on this with their own ideas about what should be done. There is a strategy in place.. it just won't do it's magic until 2.0 is out.

I hope your post helps some people who only see to the end of their nose to start seeing what is on the horizon.

You know I openly voice my concerns, but I feel pretty good too about the potential partnerships coming. This is particularly true when we talk on the whole issue of the referral program. 

The big thing I want to make sure of is that we at least try to get some structures in place that give everyday users in the forum the ability to passively gain income from their participation in the ecosystem...so it isn't just the big guys who profit.  But yeh...I personally think the big guys are preparing to profit.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Empirical1.2 on August 23, 2015, 08:55:19 pm
 +5%  +5%  I think the decentralised marketing strategy is fantastic  8)

I think the built in referral program is a great idea and will result in more marketing success as marketers and third parties will be paid for results they actually achieve. 

I believe this is a powerful marketing solution that besides being decentralised is also cost effective because it rewards results not good intentions or vote wrangling.

Other cryptos will be forced to copy it soon enough.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: cass on August 23, 2015, 09:26:29 pm
 +5% Happy to help with design as always!
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: jakub on August 23, 2015, 09:49:29 pm
Now, there's nothing wrong with trying to have central marketing again. If someone thinks they can do it by providing an overarching branding message that the BitShareholders collectively like, then there are mechanisms to propose a worker contract to provide that service to the blockchain. Just keep in mind that such a marketer's incentives will be to do things that get them elected independent of any direct measure of their effectiveness. Votes alone will be that measure.
If we can reconcile "an overarching branding message" with decentralized marketing, that would be great.
I thought the worker contract was reserved to only adding new features by amending the Graphene code-base, leaving no space for other types of activity.
But if Stan says that worker contracts can be extended to marketing/branding actions (vetted by shareholder votes) - that is good news to me.
This way all areas (including central marketing) can be covered (or left uncovered if we vote for that but at least it will be our deliberate choice and not the result of lack of appropriate mechanism).
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Stan on August 23, 2015, 10:02:08 pm
The mechanisms of the worker program are not constrained by any vision, preference or opinion we may have.
BitShares is sovereign over its own fate and doesn't need anyone's permission for anything.

Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Bitcoinfan on August 23, 2015, 10:05:59 pm
(http://cdn2.hubspot.net/hubfs/53/00-Blog_Thinkstock_Images/decentralized-content-marketing.png)

We merely try to engineer cryptoeconomic systems with properly aligned incentives... and then stay out of the way!

:)

This is not completely accurate. When the name of the game requires getting paid for wing-to-wing marketing, incentives aren't always aligned.  The best you can say is that in terms of user acquisitions, incentives are align.  But that's a meaningless metric.  Yo app had ~1 million users but couldn't monetize them. Therefore they had a negative ROI. Platform users aren't paid for the users they keep bringing BACK and consistently using the system. This is the more important metric.  The current set up as it stands now, doesn't always allow third-parties the ability to profit fairly from their work.  They are maybe at best paid for some of the users that they sign up.  But this isn't representative of the core business activities they drive on bitshares.  So this statement that incentives are aligned is only half-true. The referral program, while a good attempt, still lacks best way of resolving the purpose of the marketing arm, everyone to fairly profit from their labour.  Its not a perfect system right now, and if bitshares becomes large enough (good problem to have), this will be a contested issue over time. The referral program as it stands right now, does not fully help with the monetization of Bitshares.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Stan on August 23, 2015, 10:22:30 pm
(http://cdn2.hubspot.net/hubfs/53/00-Blog_Thinkstock_Images/decentralized-content-marketing.png)

We merely try to engineer cryptoeconomic systems with properly aligned incentives... and then stay out of the way!

:)

This is not completely accurate. When the name of the game requires getting paid for wing-to-wing marketing, incentives aren't always aligned.  The best you can say is that in terms of user acquisitions, incentives are align.  But that's a meaningless metric.  Yo app had ~1 million users but couldn't monetize them. Therefore they had a negative ROI. Platform users aren't paid for the users they keep bringing BACK and consistently using the system. This is the more important metric.  The current set up as it stands now, doesn't always allow third-parties the ability to profit fairly from their work.  They are maybe at best paid for some of the users that they sign up.  But this isn't representative of the core business activities they drive on bitshares.  So this statement that incentives are aligned is only half-true. The referral program, while a good attempt, still lacks best way of resolving the purpose of the marketing arm, everyone to fairly profit from their labour.  Its not a perfect system right now, and if bitshares becomes large enough (good problem to have), this will be a contested issue over time. The referral program as it stands right now, does not fully help with the monetization of Bitshares.

No doubt, continuing advances will be possible and desirable.

But the current system still incentivizes those who sign up users to maintain a relationship with them and continue to teach them about ways to use the system more - and generate more revenue for the referrer. 

This doesn't have to go on forever however.  Once you've convinced one of your new users that there is enough value for them to be worth buying a lifetime membership, that user becomes a self-motivated free-agent seeking to maximize the return on that investment while paying the referrer a big chunk of their lifetime expected value up front.

That membership fee she just paid effectively moves a big chunk of her future lifetime fees into the present!
Where BitShares investors and referral agents can benefit the most from it.

So, when the lifetime membership benefit is taken into account, we have truly decentralized marketing - since every lifetime member is now motivated to train themselves to benefit from that membership and, in so doing, train themselves to convince other new users.  We no longer need to build in "fair incentives" for others beyond that, because those incentives have already been transmitted to each lifetime member once and for all.

Closest thing to a self-licking ice cream cone we've come up with so far...

:)

Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Bitcoinfan on August 24, 2015, 12:18:34 am
Why would anyone get a annual membership?  I don't understand this portion.  Lifetime membership seems like a better deal to me?
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Stan on August 24, 2015, 01:50:56 am
Why would anyone get a annual membership?  I don't understand this portion.  Lifetime membership seems like a better deal to me?

We'll see.  Initially we only had lifetime memberships, then some folks thought that having an intermediate level of commitment was useful.

We take our cues from real life marketers who know what they need to make a sale.  So we want to give them the tools to ply their trade.



Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: 当年很厉害 on August 24, 2015, 01:53:41 am
picture boy
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: brainbug on August 24, 2015, 06:29:31 am
While China is tanking......

Notice http://www.coindesk.com/ubs-alex-batlin-future-of-blockchain/ ...

...final quote: "I think the partnership between bigger companies and startups can work really well because we can complement each other."

I believe this is really good news for BitShares.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: CLains on August 24, 2015, 07:53:27 am
Great post Stan  +5%
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: xeroc on August 24, 2015, 02:19:37 pm
+1
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: valzav on August 24, 2015, 02:40:20 pm
3.  So part of our marketing strategy is to incentivize third parties to use the platform to build simpler business models that are easier to explain to the end user.  As each of them works to promote their own business, demand for BTS and its derivatives will grow cumulatively.  This way, very different business models, with different customers and entrepreneurial styles pursuing their own self-interests can work together to grow demand.  All incentives are aligned.

Stan, I absolutely agree with this strategy, I've been pushing "platform" idea for a long time and now it's seems to be materializing.
But under this strategy marketing focus on our side (community) is just moving away from end users to application developers and business owners, it's still should be coordinated. We still have a single brand and single product/platform and we need to have a very clear message to those who we want to be building businesses on this platform.  Look at other platforms examples - most successful ones have perfect APIs and documentation, example apps, online courses, conferences for developers, regular meetups.
So "incentivize third parties to use the platform to build business" doesn't sound like a simple task.
Title: Re: BitShares Decentralized Marketing Strategy in a Nutshell.
Post by: Stan on August 24, 2015, 02:59:29 pm
3.  So part of our marketing strategy is to incentivize third parties to use the platform to build simpler business models that are easier to explain to the end user.  As each of them works to promote their own business, demand for BTS and its derivatives will grow cumulatively.  This way, very different business models, with different customers and entrepreneurial styles pursuing their own self-interests can work together to grow demand.  All incentives are aligned.

Stan, I absolutely agree with this strategy, I've been pushing "platform" idea for a long time and now it's seems to be materializing.
But under this strategy marketing focus on our side (community) is just moving away from end users to application developers and business owners, it's still should be coordinated. We still have a single brand and single product/platform and we need to have a very clear message to those who we want to be building businesses on this platform.  Look at other platforms examples - most successful ones have perfect APIs and documentation, example apps, online courses, conferences for developers, regular meetups.
So "incentivize third parties to use the platform to build business" doesn't sound like a simple task.

Yes, I should have highlighted that separately.  It is sort of hidden in point 4: "Cryptonomex provides tools to put all kinds of businesses in this business." At least that was what I was thinking when I wrote that line.

That's the sort of thing my business development team has been doing and a major objective of the Summer Announcements is to generate interest in such partnerships.

It's been having some success and I get quite a few inquiries every month.  So, in that sense, the b2b marketing functions you point out are being coordinated.

No doubt, we can do more, like you suggest.