The Potential of Revenue in Web3: Exploring Innovative Revenue Streams
From digital assets to tokenized collectibles, brands have several opportunities to earn revenue in web3
Creators and brands may have relied on web2 and social media for almost two decades, but today, web3 represents the new frontier in community engagement. That’s because blockchain adoption and crypto use are growing exponentially — cryptocurrency markets will reach 994 million users by 2027 with a collective value of $64.87 billion in revenue.
Reaching this audience, however, isn’t as simple as creating a branded crypto wallet. To earn revenue in web3 spaces, brands must monetize their digital presence in ways that engage and excite these growing online communities.
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What Is Web3?
Web3 is a model for running the internet on decentralized blockchains. If web1 distributed content on branded websites while web2 aggregates users on social media, web3 will let brands bypass centralized platforms and authorities entirely. Instead, users purchase tokens that grant some ownership stake in their favorite content, transparently storing each transaction on the blockchain network. When implemented correctly, brands can use web3 tools to monetize intellectual property without relying on middlemen or platforms that don’t represent their interests. Meanwhile, fans gain more control over their digital assets, including the freedom to resell tokens as they see fit.
Reaching Customers and Generating Revenue in Web3
Web3 is still in its early implementation phase, but it’s already introduced several ways for creators, entrepreneurs, and businesses to earn revenue outside of traditional marketing channels. The most innovative examples rely on consumer-driven, tokenized economies where users purchase NFTs (non-fungible tokens) on marketplaces, sometimes directly from a brand. These trades can offer much more than digital tokens by themselves, as each of these examples show:
NFTs first entered the public consciousness through digital collectibles, including ownership rights, original art, video game cosmetics, and even trading cards. Since every token on a blockchain is unique, each asset is a rare and exclusive item in its own right. More importantly, that rarity lets the digital object’s resale price grow in the same way that physical collectibles can become more valuable over time. We’ve already seen the rise of many profitable projects:
- Musicians like Jay-Z, Steve Akoi, and Jon Christopher Davis have all released digital albums as NFTs. Outside of the music itself, these albums include exclusive bonuses such as signed artwork, exclusive tracks, and concert tickets.
- Sports brands like NBA Top Shot proved that trading cards are still profitable under a web3 business model. Customers can buy digital card packs with randomly determined items or visit marketplaces to complete their collection at a higher price.
Web3 assets don’t have to be all-digital — they also represent the value of physical objects. An NFT can be associated with clothing, paintings, rare comic books, or any other property in secure vault storage. This process is called asset tokenization, and it has several benefits that are difficult to achieve using traditional methods, such as guaranteeing the provenance of items sight-unseen.
For brands, tokenization makes it possible to create new revenue opportunities by monetizing physical assets they already own. We’ve already seen enterprise companies like Adidas produce exclusive sneakers that can only be redeemed with an associated token. Customers are then free to purchase tokens and resell them as the sneaker increases in value without claiming the product — and the liability associated with keeping it in mint condition.
Schedule a demo today with us to delve into the exciting world of web3 and unlock the potential of innovative revenue streams that await in this groundbreaking era of the next internet.
One of the biggest obstacles to physical collectible markets is they can be prohibitively expensive to the average customer. The web3 solution takes an NFT associated with a product and divides it into fractionalized tokens, each representing a share of the total asset’s value. For example, the NFT for that expensive Adidas sneaker we mentioned can be split into hundreds of affordable tokens anyone can buy.
While these customers still won’t claim the product, they have more freedom to participate in web marketplaces and economies. In other words, as the value of the physical collectible increases, so does the digital collectible — allowing them to earn a tidy profit. Of course, they also have the option to buy more tokens over time and “buy out” remaining token holders once they have a majority share.
Brands don’t just earn revenue in web3 when customers purchase their initial token. Unlike traditional collectibles markets, blockchain platforms can incorporate a royalty fee into each subsequent trade that a smart contract executes automatically. That makes it possible for brands to monetize their digital presence over time instead of relying on one-time transactions — potentially increasing revenue by five to ten times in the process.
These benefits increase exponentially when we consider fractionalized tokens. Let’s say a musician wants to monetize their first instrument. By fractionalizing the NFT and including a small royalty, they would drive a high volume of micropayments from the high volume of trades. Over time, these revenue streams can drive more reliable growth that is difficult to achieve in traditional markets.
Let Dibbs Launch Your Web3 Strategy
The world of web3 might seem overwhelming, but the experts at Dibbs can help you get the most from this growing space. Whether you’re looking to produce all-digital products, fractionalize tokens, or take advantage of our world-class TaaS (tokenization-as-a-service) platform, our web3 expertise lets you generate reliable revenue streams for a decentralized internet. Ready to earn revenue in web3? Get in touch today.