[LISTEN] Balancing niche and mainstream on the road to Web3 adoption

By: Katherine Bassett

Published: 2023-05-31

This is a recap of a mainstage discussion that took place at Water & Music’s Wavelengths Summit on May 6, 2023. We will be posting weekly recaps of Summit discussions for members over the next month; you can read our overall recap of the Summit experience here.

For many observers, it can feel like Web3 is in the grips of an identity crisis. As the floor price of NFTs have plummeted across the board, many Web3 builders and projects have begun to embrace more traditional, Web 2.0 growth metrics (like number of collectors, or number of NFTs sold) as key markers of success.

However, this approach has led to some tension within Web3 circles. Is embracing scale a necessary next step on the road to mainstream adoption? Or does it fly directly in the face of some of Web3’s more alternative, niche-oriented principles — which, for many early adopters, were the key driving force which inspired them to explore Web3 in the first place? Is the “Spotify/Apple/Amazon of Web3” an inevitability, or does the unique infrastructure of Web3 offer us the opportunity to explore different, more varied models for success?

In this crossroads moment, we brought together four builders and thinkers from across Web3 for a mainstage roundtable at our Wavelengths Summit, to explore balancing niche and mainstream approaches, and to share best practices in the current market. This discussion featured moderator Sarah MacKenzie (Creative Director, MUTEK) and speakers Jeremy Stern (Co-Founder, Catalog), Sam Schoonover (Founder, Forward Studio; Innovation Lead, Coachella), and Melanie McClain (DSP consultant and Founder, Blurred Lines).

Listen to the full audio below, or read on for key takeaways from our conversation.

Timestamps:

Start where your fans are — and go easy on the jargon

Across the board, our speakers highlighted the importance of a fan-centric approach to devising Web3 projects — driving home the importance of using fan-friendly, non-technical language, and of working with teams which authentically understand the fan communities they’re creating for.

“It’s really important to authentically understand differences in communities. At P00ls, we worked with an artist called Blond:ish, who came from a very crypto-native community — she was talking about Web3 in Clubhouse rooms, she had NFTs as the backdrop of her shows. Her community meant we were able to approach things in a very ‘Web3’ way — we could start off by creating a Discord server and using the language of ‘social tokens.’ With Aluna, another artist we worked with, the idea of ‘getting tokens’ really wasn’t a driver for her fanbase. They weren’t wondering ’‘can I sell this?’, they were wondering ‘how can I be in a community with other black people who make electronic music and feel seen?’

Start off by asking, where are you at in your Web3 journey as an individual? And then, where are your fans? And then start where the majority of your fans are. Start off by providing what fans actually care about, and solely use that language. It can be super technical on the back end, but your fans probably aren’t coming from the technical side. It’s just a tool that you’re using.”

— Melanie McClain (Blurred Lines)

“Vérité sets a great example for how artists can move through Web3 in a way that doesn’t alienate her existing fanbase, but brings them in at various touch points — from ‘hey, find me at a show, tap your phone and you’ll be able to sign a virtual guestbook,’ all the way to ‘buy my 1/1 and have a one-on-one conversation with me.’ There’s different levels of involvement in Web3. Thinking about what works best for you and what your goals are — and crucially, what your fans might enjoy — is a great starting place.”

— Jeremy Stern (Catalog)

“A token doesn’t need to look like a token or a coin. They can have different aesthetics, they can fit into the world you’re building with your brand. I think abstracting away technological terms is really important to making things feel fun.”

— Sam Schoonover (Forward Studio/Coachella)

The playbook is still being written — it’s time to experiment

While it may feel like we’ve lived several lifetimes in Web3, the “we’re still so early” adage still applies. Many of our speakers highlighted the importance of failing fast, constantly experimenting, and staying curious and open-minded.

“Run little experiments in ways that are understandable to the end user.”

— Sam Schoonover (Forward Studio/Coachella)

“Know that there isn’t one playbook, and there are lots of different ways to experiment. I don’t think anyone really knows what the lasting models will be for this stuff.”

— Jeremy Stern (Catalog)

Key success metrics in Web3 music

While the bull market may have brought many headlines with eye-watering trade figures, our speakers stressed the importance of focusing on more intangible, qualitative metrics — like positive messages and responses, and the level of activity and energy in the project’s community.

“A metric that lots of people are using to gauge success in short-form video content is how many videos have been created which use a certain clip, or sound. That metric can easily apply to Web3 projects — how many people in the community are activating? How many people are hosting satellite events? How many people in the community are actively taking the time to do something, versus being passive?”

— Melanie McClain (Blurred Lines)

“For a while, it felt like volume was the key metric to focus on. But when the tide goes out with the markets, something that we’ve started to look at is how many responses we get to projects — just a message that says ‘hey, I really love what you guys put out here.’ These messages are harder to quantify, but it provides some assurance that we’re on the right track in our goal of bringing more artists into the fold.”

— Jeremy Stern (Catalog)

Future predictions

Creative cross-pollination between Web3 artists and the potential Web3 holds to supercharge CRM capabilities were key future predictions which emerged from our discussion.

“I think we’ll probably see Web3 artists who own their own publishing or masters collaborate with each other — because you’re in a community, it creates a great playground to find like-minded collaborators.”

— Melanie McClain (Blurred Lines)

“I don’t think a CRM needs to be entirely on-chain, but I do think that blockchain can super-power a CRM. A CRM is really just a list of your customers and their contact information, and what your customers are interested in. NFTs and tokens are almost like the next version of a cookie. And, of course, it’s open and publicly accessible, which makes it really interesting for any new upstart companies.”

— Sam Schoonover (Forward Studio/Coachella)

Key advice from our speakers

Fail fast, retain ownership, and start with the culture — not the tech.

“If you’re not failing, you’re not learning.”

— Sam Schoonover (Forward Studio/Coachella)

“The great unlock and great promise of Web3 is ownership. Don’t put too much trust in institutions staying around.”

— Sam Schoonover (Forward Studio/Coachella)

“One of the things I learned working in Web3 partnerships is ‘don’t be too niche.’ If there isn’t an opportunity for a secondary market, or if it isn’t easy for people to buy the crypto, it’s going to be really hard to scale and to get people involved.”

— Ladidai (music consultant, Summit audience member)

“Be transparent with people in this space, and be realistic about what you’re going to provide to them. Continue to provide value in small, incremental ways. It takes a long time to build trust, but a second to break it.”

— Sam Schoonover (Forward Studio/Coachella)

“It’s important to have people in your team who are not just front-facing, but who are behind the scenes — people who are part of culture, who understand the language and speak to people in authentic ways.”

— Melanie McClain (Blurred Lines)