Learn how to make money with your dApp
A high level of security and immutability from malicious attacks made the new version of decentralized applications an extremely attractive investment to any thriving business in the market. Having in mind that we already elaborated on which parameters top dApps have and why dApps have upper hand in comparison to traditional apps, let’s find out how we can monetize and convert them successfully into a profitable enterprise.
Traditional apps have tried their luck in getting the best monetization results using various business models and techniques, but the ones that brought the best results were the following:
1. Advertisements as one of the best monetization tool
Advertiser approach app creators and make their products visible to wide spectrum of users. Advertisements often have great result from their targeted audience thereby empowering app creators to successfully monetize their products.
2. Freemium model
Even nowadays, traditional apps have only limited options available for non-paying users, or have trial periods for the utilization of their products. Spotify, Slack, and OneDrive are the best examples of this models. Once the trial period expires, or if the user decides that the product is worth the price, they would pay certain amount of money and will be given a certain privilege (title). Beginner (Lite), Intermediate (Regular), and Advanced (Pro) all have different set of options and functionality which a standard user cannot access by default.
Video game industry also adopted these methods. Ample of prominent MMORPGs have playing restrictions as soon as they reach certain levels. If a player reached level 60 for example, he cannot further advance without paying the company certain amount of funds thus gaining various benefits in terms of skins, weaponry, skills, and the ability to progress further.
Before apps realized that this revenue models suited them best, they’ve tried various different methods which didn’t deliver the expected results. Presently, dApps are precisely in the same place as apps once were. They are yet to discover which monetizing techniques will launch them towards becoming a mainstream topic; however we at CoinPoint already have aces up our sleeves and are ahead of market’s time in terms of dapp monetizing, that is converting the dedicated effort into profit.
Bootstrap your project through manipulating market’s revenue models at hand
Conduct a crowdsale and pinpoint a demand
Crowdfunding may have experienced a bit of a decline in popularity and application throughout 2018 and early 2019, but it remains a perfect tool for dApp funds raising and launching a token.
In this situation defining your token’s core functionality is mandatory:
– Fundamental purpose of your dApp (Golem, Aragon, Request)
– Obtaining network access (BAT, Bloom)
– Product’s profit allocation to all participants (TENx, Numerai)
If this is your preferred scenario, tread carefully as you have to be aware that certain regulations must be taken into account in addition to KYC and AML compliances depending on your token’s functionality.
Monetize transaction fees
Nature of dApps dictates that each operations executed on-chain is followed by a small fee. The player or participant of the dApp is responsible for covering the expenses of each action taken. Taking a portion out of the transaction fee can help you establish a well-structured revenue model. dApp whose revenue model bears a resemblance to this one is that of Evolution.land. The whole revenue idea behind the virtual game is based on the players interacting with each other and the platform in terms of buying the resources, hiring miners, paying compensations, and transportation, etc. Ample of these actions are recorded on the blockchain and Evolution.land gets the cut from the transactions.
To make it more graphical:
1. X user buys/hires/pays/compensates something from Y service provider via your platform
2. Z% of the amount spent goes to dapp (yourself)
3. (100-Z)% goes to Y
The key plan here is to remain moderate and take minimal/standard percentage of user’s fees because if you don’t, anyone can copy the smart contract/code you made, assuming that your code is open-sourced, and through a series of devious stratagems, offer less percentage cuts than you did in the first place.
“Maximum levels reach — pay to continue” model
This model has been adopted from prior mentioned app revenue structure, and it has had quite an abundant usage all over blockchain industry. Most apparent case in which we can closely observe the model can be found in virtual games such as CryptoZombies and the like.
The game is a mixture of classical visual game and learning how to code smart contracts, ultimately creating your own unique game. The effort required for leveling through the first couple of tasks is much less demanding than that of the levels coming later through the game. For that reason, developers have created a shortcut for players who want to skip through the difficulties and level up their “Zombie Armies” for a sum of ETH. In the same manner, battles cannot be passed off before a certain “cooldown” timeframe. Paying users can bypass the cooldown timeframes and go straight from one battle to the other.
Other dApps, online casinos more specifically, also offer different memberships for users prone to bigger and more frequent bets. Memberships are divided into several categories depending on the funds spent. The more you spend the more discounts you get!
Adding subscription option to the smart contracts
Limiting “premium” functionality so that only premium members can access it adds another dimension in dApps’ metrics. This relates to options which are not by default available to every participant, but require addition costs and can be divided into 2 separate sections:
– Time-wise subs: Users are permitted to use certain options until a “cooldown” has passed. e.g. subbing to 1 month of access;
– Usage-wise subs: Users can utilize certain functions as much as they would like.
Spot-on mindsets and culmination of all models
In most occasions, dApps struggle with revenue models not because of their inability to show something unique or not being well-developed, but rather due to developer’s mindsets. Currently, 80% of the dApps are being run and operated solely by developers who aren’t very proficient both marketing and financial-wise. Their dApp can have amazing possibilities, but knowing how to approach the market and conduct business development is almost always missing.
“Thriving dApp monetization is dependently dictated by market’s demand, dApp’s business development, its impact and feedback from the users, functionality, and marketing campaigns.”
We, thereby, emphasize the importance of reaching out to the agencies which are already well-assimilated with the terms prior mentioned, and know how to approach the users and set-up the right monetization model in line with specific dApp areas.
Behold CoinPoint — an agency whose dedication and influence will change mindsets and usher the way to the top! Our experience and skillset speak on its own accord. With our trailblazing approach, your dApp will be on the top of the food chain:
– Get the conversion-prone traffic
– Monetize your dApp using our state-of-the-art custom models
– Forge the rock-solid business plan
– Manage dApp’s PNL and cash flow
– Get the word out via targeted social channels
– Visually design your platform and campaign to suit your audience
– Spearhead the industry you are a part of
With this in mind, we empower people behind dapps to believe that what they are making is worth the time and effort, and we are there for them to bring the sough-after audience to their platforms!
About CoinPoint:
CoinPoint is a premium marketing agency founded in 2013. Owned by CoinPoint Group Inc., the agency is now working with a number of all-scale businesses in the crypto space. With a wide range of clientele from cryptocurrencies markets, blockchain, and fintech, CoinPoint has already opened offices in Europe and the Asia-Pacific. With these headquarters strategically positioned, CoinPoint stays on top of the latest trends and innovations across the globe.
Website: https://www.coinpoint.net/
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