Network effects and Grassroots Marketing

Monday Letter: Network Effects and Grassroots Marketing

This may feel repetitive, as I often highlight it in my letters, but I will continue to emphasize it because it’s vital: network effects, reputation, and grassroots marketing are the bedrock of Web3. Every week, I’m reminded of how these elements shape outcomes in ways no other strategy can.

There’s a common misconception that these tools can only be developed organically. When it comes to networking—attending events, building relationships, and striking new partnerships—this is 100% true. Organic and genuine connection drives these processes. But grassroots marketing, especially when appealing to highly targeted audiences in intimate settings, can absolutely be created inorganically.

As I often say: nothing is an accident. Every ad, post, or product you encounter was carefully placed in front of you because you were identified as the most likely to fulfill a desired outcome. In Web3, the domino effect of passionate, slowly converted users is the single most powerful—and cost-effective—marketing tool.

This is why hyper-niche products consistently scale to unimaginable heights. Many of the top 200 cryptocurrencies are a mystery to most. Their utilities, target users, or even the problems they solve aren’t widely understood. Yet they thrive because they cater to a specific, curated audience whose devotion drives their growth.

So, how do you build this kind of momentum?

1. Building Exploration

If you’re a founder with a unique product, nothing beats direct engagement. Communicate individually with your target users. Literally get on a call, walk them through your product, show them how to use it, and convert them through genuine, one-on-one interaction.

This intimate process builds a core group of loyal users who aren’t just social followers—they’re advocates who will vouch for your product.

2. Scaling Your Efforts

We’re fortunate to operate in a decentralized world where data is abundant. For example, if your project operates in AI, the data you need to identify potential users is readily available.

You can:

• Scrape wallet addresses of users holding similar tokens.

• Identify users from NFT collections that align with your target audience.

Once identified, it’s easy to dive deeper.

Analyze their social activity: when they’re online, what they engage with, and which keywords resonate. Armed with this data, you can move away from “spray-and-pray” tactics and instead focus on precision targeting.

3. The Funnel

A successful funnel is built on three critical components:

• The Hook: This is your attention grabber, designed to resonate with your audience’s pain points.

• Onboarding/Experience: Once the hook catches their attention, what happens next? Whether they land on your website, Discord, or the founder’s Twitter, every interaction matters. Each touchpoint should be seamless, polished, and harmonized across all platforms. Your branding and messaging must be flawless.

• The CTA (Call to Action): What do you want your audience to do? Whether it’s joining your ecosystem, engaging on social media, or becoming vocal advocates, your CTA should focus on retention over acquisition. Acquiring users who aren’t aligned with your product’s goals is counterproductive. Vocal, committed users are what drive long-term success.

Grassroots in Every Region

As a founder, it’s your duty to implement grassroots marketing across every platform, language, and region. Whether it’s Telegram, WeChat, YouTube, or Twitter, the effort is worth it. While this strategy takes time, the compounding effects of steadily converting genuine users will yield results that far outweigh the alternative: an inorganic audience driven by misaligned incentives.

In the end, the domino effect of grassroots marketing builds something irreplaceable—a network of advocates and champions who propel your project to unparalleled heights.