How Free NFTs Can "Add Value"

The goal is to provide NFT creators a framework for keeping their communities engaged and wanting more by leveraging studies from Web2 so we can make the most out of our time, art, and strategies.

The goal is to provide NFT creators a framework for keeping their communities engaged and wanting more by leveraging studies from Web2 so we can make the most out of our time, art, and strategies.

"Free mints" and "airdrops" are used as a Web3,  marketing strategy to attract NFT collectors with a low-risk option and incentive for joining communities. But this is not a new concept. In fact, Web2 has been using a similar strategy long before Web3 was created. Let's break down how the concepts overlap in each industry, why they work from a business perspective, and why they work from a community perspective below. The goal is to provide NFT creators a framework for keeping their communities engaged and wanting more by leveraging studies from Web2 so we can make the most out of our time, art, and strategies.

Free Trial  - Free Mint

Free trials are the most obvious example. In Web2, instead of paying for a software service upfront, you'll get access to the software and decide if you wish to continue with the platform by paying for it.

In Web3, founders will offer free NFTs and give people access to limited parts of their token-gated communities, utilities, and metaverse environments. They effectively work as a "free sample" of their communities.

Web2 Business Perspective

In web2, this worked because users reported overall customer satisfaction. When users know exactly what they're signing up for, they rarely are upset about the product once they've signed the metaphorical dotted line. Additionally, free trials reduced the need for aggressive selling due to users being able to sell themselves by exploring the product independently and based on their specific needs.

NFT Community Perspective

First, "free mints" offer a level of transparency that eliminates the possibility of setting unrealistic expectations. People know exactly what they're signed up for once they're in, and if they want full-blown access to the deeper levels of the community, they must opt-in with a purchase, but they will know what they're signing up for at that point. Additionally, free trials eliminate a certain level of "risk" about opting into a project. Unfortunately, assessing whether a project founder/idea has what it takes to grow an investment or establish trust in the early days can be challenging. With a free mint, that risk is eliminated because the person who claims the free mint didn't spend a penny to opt-in.

Value Add Technique - NFT Airdrop Bundles

The "value add" technique is used to increase the utility of a product. This can be in the form of extra features on a product or service to increase its perceived value for the customer. A business may use different ways to add value.

In Web2, value-added selling techniques are commonly used in "bundles" or "subscription tiers." Example: Streaming services.

Hulu: Our ad-supported plan costs just $7.99/month (or $79.99/year) and gives you access to our ad-supported streaming library.

Hulu (No Ads): For $14.99/month, you can watch most of those same shows and movies without the ad breaks. Hulu (No Ads) excludes a few shows that play with ads before and after the video.

Hulu (With Ads) + Live TV, Disney+ (With Ads) and ESPN+ (With Ads)*: Sign up for only $69.99/month

In Web3, we see similar bundle strategies take place in the format of "airdrops." NFT collectors buy into the project to either: 1) support the founder, 2) appreciate the art, or 3) hope that they get resale value as the community grows. Whatever the reason for their initial opt-in, they are further incentivized to hold or purchase again because of an "airdrop bundle." Once in the community, you can access additional perks like utility airdrops or token-gated community events.

Web2 Business Perspective

Bundles are effective in Web2 because people enjoy getting a good deal. It makes customers feel their specific needs are being met (based on their chosen package). Additionally, we know the more items that exist in the bundle, the more valuable the customer perceives the company to be. The goal is to make customers feel like their needs were met above and beyond.  This leads to higher customer retention and a happier customer base, which contributes to the lifetime value of the customer.  

NFT Community Perspective

This technique works well in Web3 because it holds the community's attention and contributes to the lifetime value of the collector. If the airdrops bundles are released one by one on a time/action-triggered basis, you can effectively leave your community anticipating your next step and leave them craving more.

Source: https://www.forbes.com/sites/theyec/2018/04/05/free-trials-an-efficient-profitable-way-to-generate-sales/?sh=3a3c5ddd6005

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