How to transition a Web2 growth channel to Web3
It turns out, almost any Web2 growth channel can be adapted for Web3. But it takes some creativity – and community.
Table of Contents
May 26, 2022
Simply put, Ledger sells hardware crypto wallets. We’ll dive a little deeper for those who are new to this area.
When you purchase crypto, you purchase it online as a digital asset. One of the risks of buying a fully digital asset is falling prey to scams or phishing accounts. This became the main risk that most people fear when exploring the world of crypto. Especially early on, it was heavily associated with fraud and scams. Ledger was created to make people feel more secure by providing a hardware wallet – a physical key for you to store your crypto in offline. when you buy crypto, you put it in the hardware wallet almost like you would transfer a file to a USB drive. This also allows you to “sign” your transactions through the wallet to verify it’s you. Ledger is the leader in this product space. It comes with an App (Ledger live) that let’s you manage your crypto (buy/sell/swap/etc.) and also NFTs.
So how do they make money?
The hardware wallet is a “one-time” purchase, but people can buy multiple. You can only use the app if you own a hardware wallet. You can pay for services within the app and pay a fee for transactions, but using the app is free.
Anyone who owns crypto.
Ledger has a vision that anyone who owns crypto should get their own “custodian” and own a hardware wallet. It’s also used by people who own on other exchanges.
Ledger is at the intersection of Web2 and Web3. Their platform is a big game changer in terms of product growth. Instead of people being connected to information through their name, they are now connected through their wallet. Ledger has been selling hardware wallets almost like eCommerce on Web2. The hardware wallet is not only the gate into crypto, but their identity.
They first tried to use a referral program with a standard discount + credit model. Someone signs up via referral at a discount, and in exchange the referrer get’s credit. But this is a very Web2 model, and didn’t really make sense because it’s something you need, and only need once.
Ludovic and his team decided to shift to a more Web3 approach. Instead of discounts, they started to give rewards. And not just any reward. Crypto! When you refer a friend, you get a small amount of crypto. When your friend signs up, they do as well. All of this is done by connecting the Hardware wallet to get a referral link, and it’s done in the app instead of the website. This means you get the crypto directly in your app that you can use immediately from day one. This makes the mindset and feeling different. It builds a stronger brand and level of trust. It also makes people use the app because everything is in the app itself.
It is a true Web3 growth channel. You can check out the referral program here.
“A Web3 company using a Web2 growth channel just hurts the brand”
Ledger has 5M clients who own a hardware wallet 🤯
In Web3, you don’t build a product and then a community. You build a community and then a product for the community. You want to gather people with the same interests and figure out what you can do together. From there, you build something together. Why? Your community becomes your (accidental and free) ambassador program. So the more you work on community, the better. It’s also super important to keep your community active. The more ideas you gather, the more ideas that will come for partnerships (very important in Web3).
Most channels in Web2 are ‘adaptable’ for Web3 (ex. SEO, Web3 is still searching for things), but everything has a community focus. This makes things like Referral Programs almost inherent within Web3 products. On the blockchain, because everything is readable and owned by everyone, you can know how people act, how they consume, what they interact with, etc. So you can adapt almost everything, but it’s a large shift.
While Ledger is not a “community” based company, they integrate with all the other communities around Crypto, and actively talk about Ledger within them. Being active in communities allowed them to see the flaws in their own traditional referral program. Specifically, why it wasn’t appealing to them.
Ledger’s referral program not only has an obvious Web3 component, but it’s unique to their product. When you download the app and initialize, they know you are a Ledger customer. Because your Ledger is synced with the app, they can create a refer a friend account connected to the crypto address. From here they notified they are eligible, and the user selects an address to send your free Bitcoin within the app. After you share and sign-up, you see the crypto in your app instantly. On the backend, your link has an ID linked to a cookie. If the person comes through your link and lands on the website, the purchase will be associated with your cookie and get $ in bitcoin for your referral. This is what is treated as their CPA for the campaign.
Start with a growth channel you’re interested in, and ask yourself:
- How can I adapt this channel to be community-focused?
- Ex. SEO on Google → SEO on Discord servers for communities. (Read more on this tactic here.)
- How can I use our product to provide more value in this growth channel than anyone else?
- Ex. Run a contest offering token ownership in a DAO instead of a prize.
- How can you incorporate sharing into your growth system?
- Ex. Create content sourced from your community.