How to Sell 5555 NFTs with "Recycled Money"
To grasp why the strategy in this case study is effective, it's essential to comprehend the mindset of web 3 buyers. These individuals endure the hassle of engaging on Discord and Twitter to secure a whitelist, conducting their own research, and investing considerable time and money—often spanning 4 to 6 weeks—to familiarize themselves with a project. There's a significant risk here: the project might not even sell out, and even after it does, it could easily drop to zero. Now, imagine a brand approached you with a proposition to skip the 4-6 week wait. You see a Twitter ad from them with details about pricing and utility, and you can purchase your NFT immediately. This saves you time, money, and hassle.
In terms of marketing expenses, they had anticipated a budget of 20K for marketing. If you're familiar with influencer costs, you’ll know that rates start around 5K for a single YouTube video review, which doesn't leave much for other advertising, so Hangry Hippos needed to budget wisely. It’s important to note that while you may forgo Discord, you cannot have zero Twitter followers for this approach. Avoid purchasing followers or Discord members. The ad copy—what you write in the Twitter ad—should be concise, clearly stating the price. Once you have your Twitter NFT certificate, video ad, and ad copy ready, it's time to launch the ads. The key aspect of setting up ads is the targeting. Though this isn't the focus of the case study, I can explain everything related to Twitter ads targeting during a consulting call. Effective marketing means selecting specific demographics, like age, gender, and countries, to ensure ad profitability. After the ads are live, it's crucial to monitor specific metrics. For cost per click (CPC), aim for around 20-30 cents. The return on ad spend (ROAS) for Hangry Hippos initially was 10 dollars for every dollar spent, which later declined to 3 dollars per dollar spent over time.