The 7 Immutable Laws of Web3 Marketing
Violate Them at Your Own Risk
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It’s great to have you here.
Welcome back to another edition of the newsletter. Below you’ll find the 7 Immutable Laws of Web3 Marketing. Derived from the iconic teachings of Al Ries & Jack Trout — a pair of traditional marketing's most distinguished strategists — these Laws are time-tested principles that remain immensely valuable to us Web3 marketing degens. Let’s dive straight in.
Law #1: The Law of Leadership ~ It's better to be first than it is to be better
📜 Description of the law
The Law of Leadership puts the spotlight on a brand's ability to shape consumer perception, define expectations, and pave the way in a new market category. It's not about being the best, but about being the first in the minds of consumers. Marketing is a battle of perceptions, where the one who first imprints their image in consumers' minds often outshines those who might be objectively superior.
⚡ Why it's important to you
Regardless of how unique or improved a latecomer's product is, the pioneering brand usually remains etched in the consumers' minds. Once a brand fills a category spot, it is difficult for consumers to adapt.
🔎 Web3 examples
👉 Ethereum: As the first smart contract platform, Ethereum shaped perceptions around blockchain computing and dApps. Today, despite fierce competition from other capable platforms, Ethereum still holds a dominant position in people's minds.
👉 Metamask: Metamask may not be the fastest or the smoothest, but it was the first. Being the first wallet introduced has allowed it to maintain its position as the go-to crypto wallet, despite competitors offering lower fees & better UX.
Law #2: The Law of the Category ~ If you can’t be first in a category, set up a new category you can be first in
📜 Brief description of the law
Can't be first in an existing category? → Create a fresh one that you can lead. This law emphasizes setting up a new, distinct sector within a broader market where your brand can be the pioneer. Instead of trying to reposition against the leader, move yourself into a new category that you can dominate.
⚡ Why it's important to you
As a Web3 marketer, you’ll find yourself in a space where the leading categories are already dominated by pioneering projects. This principle encourages you to think innovatively and create a fresh niche, a sub-market that your brand can claim. This approach not only allows you to steer clear of intense competition but also provides an opportunity to lead and shape a new category.
🔎 Web 3 examples
👉 Axie Infinity dominates the "play to earn” space. However, new games, like StepN, were able to carve out their own niches such as "move to earn" to form new categories.
👉 Trader Joe forked SushiSwap and became the first DEX Avalanche, strategically carving out a new category for them to dominate.
Law #3: The Law of the Mind ~ It’s better to be first in the mind than to be first in the market
📜 Brief description of the law
This law highlights the importance of first breaking into the consumer's mind and then reinforcing that position through repetition. The real battleground of marketing lies within your target audience's mind. With consistent repetition of messages, slogans, and core brand positioning, you can shape your consumers' reality.
⚡ Why it's important to you
In the cluttered world of Web3, the ability to create a unique space in the minds of your audience is invaluable. It’s all about creating lasting impressions and strengthening the bond with your audience. In essence, you're not just selling a product or service, but a perception, a feeling that your brand evokes.
🔎 Web 3 examples
👉 Solana has continuously communicated its speed and cost benefits, securing mindshare as the fast and cheap Ethereum alternative despite network instability.
👉 Despite not being first, $DOGE became the leading meme coin in people's minds through brilliant marketing, branding, and a cult-like community. (Shout out Elon).
Law #4: The Law of Focus ~ The most powerful concept in marketing is owning a word/concept in the prospect’s mind
📜 Brief description of the law
The crux of this law lies in the power of simplicity and specificity. You “burn” your way into users’ minds by narrowing the focus to a single word or concept. Marketing is about manipulating your target audience's perceptions. Success favors those who solidify their brand's position over broadening their scope.
⚡ Why it's important to you
Owning a word in the prospect's mind enables you to occupy a unique space that competitors cannot easily penetrate. By focusing on one concept, you can become a specialist in your niche, making you more recognizable and memorable.
🔎 Web 3 examples
👉 Phantom Wallet, for instance, focused on the phrase "Solana Wallet," creating a strong association with the two things in consumers' minds.
👉 1inch has maintained an extreme focus on DEX aggregation, consciously ignoring other DeFi niches, thereby strengthening its market position as a category leader.
Law #5: The Law of the Ladder ~ The strategy to use depends on which rung you occupy on the ladder
📜 Brief description of the law
The Law of the Ladder suggests that your marketing strategy should be determined by your brand's current position on the market ladder. If you are the market leader, your focus should be on the category as a whole. If you are a challenger or a follower, you should concentrate on how you differentiate from the brands on higher rungs.
⚡ Why it's important to you
Remembering this law helps brands develop a clear and effective marketing strategy. The law underscores the importance of understanding your position on the ladder and acting in accordance with that positioning, rather than trying to apply strategies that are more suited to brands on different rungs.
🔎 Web 3 examples
👉 Tensor strategically positioned themselves against Magic Eden, focusing on professional traders to take a portion of Magic Eden's market dominance on Solana.
👉 Despite a late entry into the cross-chain infrastructure sector, LayerZero wisely identified the current gaps and tailored its positioning to exploit them.
Law #6: The Law of Brand Extension ~ There’s an irresistible pressure to extend the equity of the brand
📜 Brief description of the law
By far the most violated law out of them all is the Law of Brand Extension. It cautions that brands' overextension often leads to dilution and confusion. When a brand stands for everything, it ultimately stands for nothing. Brands that try to be all things to all people often end up in trouble. Focus on exploiting what works and not falling under the assumption that with a loyal customer base extending the brand will guarantee success.
⚡ Why it's important to you
Understanding this law can save your brand from the pitfalls of overextension. If you're considering expanding into new areas, remember that it might dilute your brand's message and confuse your customers. Don’t ruin the brand that you’ve spent all this time trying to build.
🔎 Web 3 examples
👉 Magic Eden quickly losing its market dominance after it expanded beyond Solana.
👉 Uniswap and other leading DeFi protocols failed attempts at extending their well-established brands from DeFi to NFTs.
Law #7: The Law of Acceleration ~ Successful programs are not built on fads, they’re built on trends
📜 Brief description of the law
The Law of Acceleration underlines that successful marketing strategies are built on long-term trends rather than short-lived fads. Although fads might be profitable in the short term, they don't last long enough to bring lasting benefits.
⚡ Why it's important to you
While tracking fads shouldn’t be ignored, it’s important to remember as quickly as they are born they typically soon disappear. Your marketing strategies should aim to be authentic and focused rather than jumping on every emerging fad that comes to Crypto Twitter.
🔎 Web 3 examples
👉 The $TIME phenomena on Avalanche did not manage to maintain trading activity within the network after the initial fad.
👉 Many metaverse projects are guilty of chasing fads rather than focusing on long-term trends or providing sustainable utility.
And that’s a wrap! 🤝
Stick to these 7 laws of Web3 Marketing and you should be well on your way towards establishing a lasting brand within our ever-evolving space. Till next time. 🫡
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