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Building for the “Have Yachts”
When building in Web3, you basically have two choices.
Tugan & Apollo
November 07, 2023
We like to say…
When building in Web3, you basically have two choices.
Build for the “have-yachts”—the Top 1%.
Or the “have-nots” — the Bottom 80%.
The following is a case why you should build stuff for really rich people…
Why?
* It’s much less work
* It’s much less headache
* It’s much more profitable
Apollo Personal Story:
I spent a significant amount of my time and money this year building a product for the “have-nots”.
It was called Cashout. Users had the possibility to fill out surveys, complete offers and play games and get gift cards and crypto in exchange.
Sounds great and profitable in theory, but in reality, it had the following downsides.
Small margins
High stress because a lot of stressed users
High customer support
You need A LOT of them to matter
That’s why…
Just sell to rich people…
Web3 examples.
* Moonbirds 2ETH mint.
* BAYC
* Memeland “You The Real MVP” Mint for 5ETH
If you think about it… It’s the same effort as trying to mint out a 5.000 NFT collection for 0.05ETH. You have to pay the moderators, the designers, the devs.
It’s the same operation. But just by switching the target audience, you can make 10x more money.
So… what do rich people like?
Scarcity. There are only a couple left. (Hermes Birkin Waiting List)
Status. It’s hard to get in. (Annabels London Private Club)
Personal Care. There are not too many others and they have direct contact. (Flying First Class)
Relaxing. It’s no headache, whatever they need, you can arrange. It’s fast and smooth. (Aman Hotels)
Ok… Now the “have yachts” Funnel…. Or what I call the “Handshake Funnel”
What you don’t need.
* A fancy website
* Social Media Presence
* A community
Where do rich people hang out?
First, they don’t use social media. Rich people don’t watch ads.
The best way to reach them is…
Introductions. Lobbies in Five Star Hotels. Conferences. Private Network. (Possibly even Linkedin).
A case study from our friends over at Amphor.io .
More than 3M TVL their protocol, which is an USDC vault strategy that replicates the payoff of Univ3 pair USD/ETH. You can say that it's an option product.
Let’s say you want to raise money from “have yachts” through an NFT drop.
3eth mint. You sell 100 NFTs, you make 600k.
Versus…
6.000 people at 0.05eth.
Example Tugan & Apollo.
We only work with established projects and people that “get it”.
We’re super expensive. But, what we deliver is also super good.
Idea for everybody in here:
If you would charge 10x or 100x your current price, what would your product look like?
Then do it, and charge 10x more - see what happens.
Good things are coming,
T&A