a16z partner: Web3 no longer needs advertising but “self-marketing”

On October 24th, a16z partner Chris Dixon published his insights on the difference between Web2 and Web3 on social media. In Chris Dixon’s view, Web2 relies on advertising, while Web3 is “self-marketing”. Rhythm BlockBeats translated and organized the full text.

The following is the original translation

Web2 is built on advertising. Large companies such as Facebook and Google invest most of their revenue in advertising, and many web2 startups use advertising to build their initial customer base.

When you rely on advertising to expand your business, in theory, if you retain enough customers (due to advertising), you will eventually be profitable in the long run.

However, in practice, there are many incentives that lead to risks. Bill Gurley explains this well in his classic article “The Dangerous Seduction of the Lifetime Value (LTV) Formula”.

Web3 will take a different path, allowing users, creators, and builders to participate in the development of the network as true owners.

Value and control are not held by the central company, but are allocated to the people who actually build the network.

This means you no longer need advertising.

Token has the ability of self-marketing. When people really own certain tokens and taste the sweetness as a result, they will spontaneously want to spread it.

Bitcoin is the best example of this, a trillion-dollar network that was established through community-led promotion and research and development.

(This could not happen without social media. In the era before social media, bottom-up communication was much more difficult. The emergence of social media made the transition from web2 to web3 possible.)

Not relying on advertising, only relying on community-led research and development, has changed the economic system of Internet services. This makes the churn rate of Web2 users converted to Web3 very low.

This is why the Token distribution mechanism is so important. The key is to cultivate a real community-and assign ownership to those who work hard to actually build the network.

In addition, self-marketing is a very powerful force for the Internet. In good circumstances, this power will drive a truly useful network. But this is not always the case. Self-marketing occasionally generates meme coins.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a16z-partner-web3-no-longer-needs-advertising-but-self-marketing/
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