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We are seeing many startup founders turning to Web3 models, and many established Web2 companies are already taking a step toward upgrading. With companies like Nike, Adidas, Google, Facebook, YouTube, TikTok and Twitter, it’s safe to say that leading companies are predicting that the future of the internet will be Web3-based. As more market participants join the space and create great companies, they have been greatly impacted by the crypto market, which is currently in a bear market.
Since both cryptocurrency and Web3 come from the same technology – i.e. blockchain technology – many people confuse Web3 with cryptocurrency and even think that they are different names for the same thing. That’s not the case.
Web3 and cryptocurrencies are not the same. Sooner rather than later, the Web3 market will break away from the crypto space and join the startup economy, which tends towards evaluating user statistics rather than investor speculation.
It’s the wild west out there. Some tokens have fallen drastically, as seen with Coingecko, and the market is in decline. We are seeing a decrease in users actually using the apps themselves (see Sandbox, Decentreland, Opensea, etc.). This tells us something that is very important to note – the investors are the users, resulting in only being used when the market is bullish. Imagine a company where the entire user base is made up of people who actually use their app for its own benefit, rather than just trying to make a profit.
Well, here’s how to grow during a bear market.
Also see: How your business can thrive in a bear market
1. Build better foundations for your business
Keeping optimizing and building during a bear market is one of the best things you can do for your business. Go through your processes, review what worked and what didn’t, and tweak as much as possible.
Before the market collapsed, we saw companies hit ATH (all-time high) in two weeks. Turning your company into a unicorn for a few days is very appealing, and this desire has likely led to many founders tweaking their projects into a bull situation full of hype and FOMO (fear of missing out). While this can work perfectly for pyramid-based and high-yield projects, it doesn’t for most of the Web3 realm. So it’s time to build a better foundation.
Preparing for the future is a lot easier in times like the present, when it’s difficult to get positive attention for your business. The worst thing you can do is stop building and wait for the next bull. You may be under the illusion that “every company does well in a bull market,” but that’s usually not the case. It’s a lot harder to advertise with all the noise and get real attention in tough times.
2. Grow and nurture your community
I’ve never seen a chart that only goes in one direction, so neither bull nor bear defines the problem to be solved. It’s the consistency in building a community of people that your product provides solutions for. Nurture community relationships and make them feel like they are in a stable and caring space. That and only that will create a revenue stream that fluctuates much less with the market. Getting the right audience in front of your solution during a bear market will prove how resilient your project really is and how well it will perform in a bull market.
The Web3 space will lose its ties to the crypto market very soon and every major sector is led by a company that endorses or uses tokens for the benefit of its users.
Related: Why the Bear Market is the Best Thing That Can Happen to Web3 and Cryptocurrency
3. Advertise and market in a personalized way
Promote and market your product to your audience. If you already have a product that solves a problem, your next task is to get it in front of the right audience. It’s not easy, but establishing your brand now is the best thing you can do for your business.
The promotional techniques used during a bull market, like sponsoring a soccer team or paying influencers, won’t have the same impact now. The key is to create and optimize different funnels for different segments of your audience until you can expand and scale your marketing, or in two words: personalized ads.
The biggest advertising networks like Facebook and Google largely reject Web3 companies as they classify them as crypto companies and are not very friendly towards them. However, newer companies have joined the game and want to promote Web3 companies.
To sum up, it is important to note that every company will be hit by a bear market and Web3 companies are still being crushed by the crypto market. But companies that are still useful during these strange times should focus on growing their user base and building their brand. I suspect such companies will have a better chance of drinking tequila on the beach in the next bull market.
Related: Where’s the bottom for this bear market?