NFTs are poised to become a pillar of our economy in the coming years. As a result, it would be incredibly short-sighted of web2 brands to refrain from participating in the burgeoning ecosystem.
But while some projects have skyrocketed to success, others have crumbled, even during the bullish signals. Too often, we have witnessed ambitious projects delivering lackluster results, attributed to a lack of in-depth understanding of the market and how its community operates.
Porsche's recent foray into the Web3 space is a perfect example of such a failure. Despite being launched by a luxury automaker, the Porsche 911 collection received backlash from the NFT community and failed to sell out in the primary market.
Many have attributed Porches' outcomes to an insufficient understanding of the rules governing crypto markets and failure to reach a user-base traditionally disconnected from Web3 sales channels. While this is broadly correct, one specific element could have helped drive a successful drop for Porsche: better community management.
The Importance of NFT Community
Web3 is a burgeoning industry rife with innovation. Builders throughout the space are developing game-changing protocols in DeFi, NFTs, GameFi, and the metaverse. But Web3 is also a nascent industry where things that don't make a shred of sense happen with head-scratching frequency.
The NFT market is especially notorious for being unpredictable. What moons and what doesn't seems to be completely arbitrary. Take Dogecoin. What started as a joke cryptocurrency quickly gained an ardent following on Reddit and beyond. Today, DOGE has a market cap of $$ billion and has amassed a global following.
Something similar occurred last summer with the Goblins. Set against the backdrop of the 2022 market crash, the collection somehow soared to >25 ETH off the back of a Twitter Space where grown men made barely comprehensible goblin noises for 3 hours straight. Makers throughout the space immediately jumped on the hype, with Goblintown derivatives flooding OpenSea's volume charts just weeks after going live.
So, what do Dogecoin and Goblins share in common? They both have a fervent and loyal community that will press the buy button even when it doesn't really make sense to do so.
Like cryptocurrency, an NFT increases in value when the demand exceeds supply. What is the best way to increase the demand of an NFT project? Grow a larger and stronger community.
The NFT market wouldn't be what it is today without the backing of the community it rides on. This is what way too many new NFT brands fail to acknowledge. It doesn't matter how great your art is or the utility it bestows; if the community doesn't rally around it, your project will fail. Period.
So, if you're wondering how to cultivate a community around your NFT project, you're in the right place. Here are some ways you can get started:
1. Establish an Online Presence
Unless you're stuck in the year 2000, you should probably be aware that social media is a powerful tool for promotion. Your best bet to find quality engagement amongst NFT enthusiasts is on Twitter and Discord, but it's also worth setting up accounts on Medium, Instagram, and Reddit.
2. Engage With Your Community
Regularly interacting with your community helps people feel closer to your project and take a vested interest in its long-term success. Foster engagement by hosting giveaways, Q&A sessions, and exclusive events for your community members. Create a sense of belonging and ownership by involving them in project decisions and feedback loops.
3. Create a Clear Roadmap
Creating a clear road map and communication strategy helps keep your community in the loop and excited about the project's progression. It's vital to clearly define your project's vision and goals, ideally for each quarter, and to regularly share updates on progress through announcements on your blog and your Discord and/or Telegram channels.
4. Hire a Community Manager
A community manager can help you build and engage with your community, execute strategies to increase the visibility of your project and foster a sense of belonging among your followers.
This is especially important for non-web3-native brands that lack the experience and expertise necessary to navigate the nuances of the industry. As community managers are well-versed in the crypto community, they can help you stay up-to-date with the latest trends and best practices and ensure that your project is positioned to succeed.
5. Collaborate with Other NFT Projects
Teaming with like-minded individuals is key when it comes to growing an NFT community. Collaborating with other creators and projects is a great way to share knowledge, communities, and popularity and reach a wider audience for both parties.
Closing Thoughts
Your community is what will ultimately determine the success of your NFT project and so it's crucial to put in the work. Use this list of tips to ensure success for your mint and the long-term value creation for your holders.